23150 NEXT; TRAIL STOP-LOSS TO 22650

 

23150 NEXT; TRAIL STOP-LOSS TO 22650

 

WORLD MARKETS

 

Dow ended flat while S & P 500 and Nasdaq gained 0.7% and 1.1% respectively. Nasdaq closed at a fresh record high as gains in chipmaker Nvidia outweighed worries that the Federal Reserve will delay interest rate cuts.

 

Nvidia saw additional rise of 2.6% on Friday, after surging 9.3% on Thursday as enthusiasm continued over its blockbuster earnings report. 

 

After several strong economic and labor data releases this week, Goldman pushed its forecast for the Fed’s first rate cut back to September from July.

 

Orders for durable goods rose 0.7% for April. While this was slightly below the 0.8% increase in March, it was far above the estimate for a 1% decline. University of Michigan’s consumer sentiment index for May was 69.1, down from 77.2 in April. One-year inflation expectations came in at 3.3%, down from 3.5% in the preliminary mid-month results.

 

U.S. 10-year treasury yield fell 1 bps to 4.467%. Dollar index fell 0.3% to 104.75. Gold inched up 0.2% to $2334 per ounce.

 

WTI crude futures rose 1.1% to $77.72 a barrel while Brent futures rose 0.9% to $82.12 a barrel.

 

In Europe, FTSE and CAC fell 0.3% and 0.1% respectively while DAX was flat.

 

For the week, Nasdaq and S & P 500 rose 1.4% and 0.03% respectively but Dow tumbled 2.3%, snapping a 4-week winning streak.

 

AT HOME

 

After Thursday's mammoth upmove, Friday was a day of consolidation as benchmark indices ended flat after a rangebound session. Sensex settled at 75410, down 7 points while Nifty lost 10 points to finish at 22957. Nifty mid-cap index was flat while small-cap index fell 0.2%. Nifty FMCG and Realty indices were the top losers among the sectoral indices, down 0.8% and 0.7% respectively whereas Media index was the top gainer, up 1%, followed by 0.5% higher Financial Services and Oil & Gas indices.

 

FIIs net sold stocks and stock futures worth Rs 945 cr and 586 cr respectively but net bought index futures worth Rs 5410 cr. DIIs were net buyers to the tune of Rs 2320 cr.

 

Rupee appreciated 18 paise to end at 83.10/$.

 

For the week, Sensex and Nifty gained 1.9% and 2% respectively, extending the winning streak to second straight week and posting highest ever weekly close.

 

OUTLOOK

 

Today morning, Shanghai and Nikkei are up 0.3% each while Hang Seng is up 0.2%. GIFT Nifty is suggesting a flattish start for our market.

 

In Friday's report we had said that 23125 was the next upside level to eye while 22550 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 23026, eased to end at 22957.

 

23150, around which a rising trendline adjoining recent monthly tops is placed, is the next upside target; 22700-22650 is the immediate support zone on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 49334, the 78.6% retracement levels of the recent 49975-46983 fall, is the next upside levels to eye; 48250 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

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