22360 CONTINUES TO BE NEXT TARGET; 22100 CONTINUES TO BE IMMEDIATE SUPPORT

 

22360 CONTINUES TO BE NEXT TARGET; 22100 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 0.9%-1.4% to hit fresh record highs on soft inflation weaker-than-expected retail sales data.

 

U.S. consumer price index rose 0.3% in April, below the expectation of a 0.4% rise. On yearly basis, CPI rose 3.4% after climbing 3.5% in March, in line with market estimates. U.S. retail sales was unexpectedly flat last month, as higher gasoline prices pulled spending away from other goods.           

 

U.S 10-year treasury yield tumbled 10 bps to 4.344%. Dollar index slipped 0.7%to 104.28. Gold jumped 1.2% to $2386 per ounce. 

 

WTI crude futures rose 0.8% to $78.63 a barrel while Brent futures rose 0.4% to $82.75 a barrel.

 

European markets gained 0.2%-1.1%.

 

Japan’s first-quarter GDP contracted at an annualized rate of 2%, more than the 1.5% expected.

 

AT HOME

 

Benchmark indices ended marginally lower after a rangebound session, snapping a 3-day winning streak. Sensex settled at 72987, down 117 points while Nifty lost 17 points to finish at 22200. Nifty mid-cap and small-cap indices however gained 1% and 0.6% respectively, with the former extending the winning streak to fourth straight session. Nifty PSU Bank and Realty indices climbed 1.4% and 1% respectively, becoming top gainers among the sectoral indices, while FMCG index was the top loser, down 0.9%, followed by 0.5% lower Media and Auto indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2833 cr, 1967 cr and 2793 cr respectively. DIIs were net buyers to the tune of Rs 3788 cr.

 

Rupee appreciated 1 paise to end at 83.50/$.

 

India's trade deficit widened to a four-month high of $19.1 bn in April as imports rose 10.3% to $54.1 bn while exports rose 1.1% to $35 bn.

 

OUTLOOK

 

Today morning, Asian markets are up 0.4%-0.7% and GIFT Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 22350, was the next upside level to eye while 22100 is the immediate support on the hourly chart.

 

Nifty, after touching a high of 22297, slipped to end at 22200 and is set to open above 22250 today.

 

34-DMA, placed around 22360, continues to be next upside level to eye, above which, 22422 and 22586, the 61.8% and 78.6% retracement levels of the recent 22795-21821 fall, would be next upside levels to eye; 22100 continues to be immediate support on the hourly chart.

 

For Banknifty, 48000 continues to be immediate hurdle, upon crossover of which, 48644 and 48958, the 50% and 61.8% retracement levels of the recent 49975-47313 fall, would be next upside levels to eye; 46983, the low made on Monday, is the immediate support.

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