22775-22800 IS THE RESISTANCE ZONE; 22315 IMMEDIATE SUPPORT

 

22775-22800 IS THE RESISTANCE ZONE; 22315 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 1.2%-2% after a softer-than-expected April jobs report boosted hopes that the Federal Reserve could start cutting interest rates soon.

 

Nonfarm payrolls report showed 175,000 jobs gained in April, below the 240,000 jobs expected. The unemployment rate edged up to 3.9%, versus 3.8% in the prior month. Wage figures also came in less than expected, an encouraging sign for inflation.

 

Apple advanced nearly 6% after it announced a $110 billion share repurchase and a top -and bottom-line beat.

 

U.S. 10-year treasury yield fell 7 bps to 4.512%. Dollar index fell quarter of a percent to 105.08. Gold was little changed at $2302 per ounce.

 

Brent crude futures fell 0.8% to $82.96 a barrel and WTI futures fell 1.1% to settle at $78.11 a barrel.

 

In Europe, FTSE and CAC rose half a percent each while DAX gained 0.6%.

 

For the week, U.S. indices gained 0.6%-1.4%. Brent was on course for a weekly decline of about 7% while WTI was headed for a loss of 6.5% on the week.

 

AT HOME

 

After opening higher by six tenth of a percent, Sensex and Nifty nosedived to end lower by 1% and 0.8% respectively. Sensex settled at 73878, down 732 points while Nifty lost 172 points to finish at 22475. Nifty mid-cap and small-cap indices fell 0.4% and 0.5% respectively, with the former snapping an 8-day winning streak. Except marginally higher Healthcare and Pharma indices, all the NSE sectoral indices ended in red, with Realty and Oil & Gas indices being the top losers, down 1% each.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2392 cr, 4419 cr and 8190 cr respectively. DIIs were net buyers to the tune of Rs 691 cr.

 

Rupee appreciated 5 paise to end at 83.42/$.

 

For the week, Sensex and Nifty gained 0.2% each, extending the winning streak to second straight week.

 

OUTLOOK

 

Today morning, Shanghai and Hang Seng are up 0.7% and 0.2% respectively while Japan is shut for a holiday. GIFT Nifty is suggesting nearly 100 points gap-up start for our market.

 

In Friday's report we had said that 22783, the top made on Tuesday, continued to be immediate hurdle, while 22500-22450 was the immediate support zone, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a high of 22795, reversed and plunged all the way to 22348 before closing at 22475. The benchmark is set to open above 22550 today.

 

Nifty has repeatedly taken resistance in 22775-22800 region and a crossover of this hurdle is required for a fresh upmove; 34-DMA, placed around 22315, is the immediate support to eye.

 

For Banknifty, 49975, the top made last week, is the immediate hurdle; 20-DMA, placed around 48350, is the immediate support.

Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.