21821 IS IMPORTANT SUPPORT; 22200 IMMEDIATE HURDLE

 

21821 IS IMPORTANT SUPPORT; 22200 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow fell 0.2%, snapping an eight-day winning streak, S & P 500 was little changed while Nasdaq rose 0.3%.

 

A New York Federal Reserve survey showed consumers last month raised their expectations for price increases in both the near and long term. On a one-year basis, inflation expectations rose to 3.3%. Their five-year outlook ticked up to 2.8%.

 

U.S. 10-year treasury yield fell 1 bps to 4.488%. Dollar index fell 0.1% to 105.21. Gold slipped 1% to $2336 per ounce.

 

Brent crude futures rose 0.5% to $83.21 a barrel and WTI futures rose 0.8% to $78.92 a barrel.

 

In Europe, FTSE and DAX fell 0.2% each while CAC fell 0.1%.

 

China’s consumer price index climbed 0.3% year on year, beating estimates of a 0.2% rise. Data from the Bank of Japan showed that corporate inflation was steady in April compared with a year earlier, but import prices jumped 6.4% y-o-y, most likely due to the yen’s sharp declines.

 

AT HOME

 

After falling more than a percent in first hour, benchmark indices reversed and surged to end higher by a fifth of a percent each. Sensex settled at 72776, up 111 points while Nifty added 48 points to finish at 22104. Nifty mid-cap index rose 0.4% but small-cap index fell 0.4%. Nifty Pharma and Healthcare indices climbed 1.8% and 1.6% respectively, becoming top gainers among the sectoral indices while Auto and PSU Bank indices were the top losers, down 1.7% and 1.2% respectively.

 

FIIs net sold stocks and index futures worth Rs 4499 cr and 951 cr respectively but net bought stock futures worth Rs 296 cr. DIIs were net buyers to the tune of Rs 3563 cr.

 

Rupee depreciated 4 paise to end at 83.53/$.

 

India's retail inflation cooled to an 11-month low of 4.83% in April. Core inflation eased to an even further 3.5%.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are marginally higher while Shanghai is down 0.3%. GIFT Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 21932, the low made last week, was the immediate support, upon breach of which, 21850, around which a trendline adjoining bottoms made in March and April was placed, would be next downside level to eye.

 

Nifty, after touching a low of 21821, rebounded to end at 22104.

 

21821, the low made yesterday, coincided with a trendline adjoining bottoms made in March and April and hence is the important support to eye; On the way up, 22200 is the immediate hurdle on the hourly chart.

 

For Banknifty, 46983, the low made yesterday, is the immediate support, upon breach of which, 46579, the bottom made in April, would be next support; On the way up, 48000 is the immediate hurdle on the hourly chart.

 

Bharti Airtel will report its quarterly earnings today.

 

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