TRAIL STOP-LOSS TO 22400

 

TRAIL STOP-LOSS TO 22400

 

WORLD MARKETS

 

U.S. equity benchmark indices fell 0.2%-0.5% as the minutes from the latest Fed meeting raised concerns of persistent inflation, indicating the central bank may not cut interest rates soon.

 

The minutes stated a lack of progress in recent months toward lower inflation and also showed “various participants” discussed a willingness to hike rates if inflation did not keep moving lower toward its 2% goal.

 

U.S. 10-year treasury yield rose 1 bps to 4.426%. Dollar index rose 0.3% to 104.91. Gold plunged 1.7% to $2378 per ounce.

 

WTI oil futures fell 1.4% to $77.57 while Brent futures dipped 1.2% to $81.90 a barrel.

 

In Europe, FTSE and CAC fell 0.6% each while DAX dipped 0.25%. U.K. inflation came in at 2.3% on an annual basis in April, above the forecast of 2.1%, but much closer to the Bank of England’s 2% target than March’s reading of 3.2%.

 

Back in the U.S., Nvidia added 6% in extended trading after posting stronger-than-expected quarterly results and announcing a 10-for-1 stock split.

 

AT HOME

 

Sensex gained 0.4% to end at 74221. Nifty rose 0.3% to finish at 22597, extending the winning streak to fifth consecutive session. Nifty mid-cap index rose 0.2%, extending the winning streak to ninth straight session and hitting fresh record highs. Small-cap index fell 0.4%, extending the losing streak to second straight session. Nifty FMCG and Realty indices gained 1.4% each, becoming top gainers among the sectoral indices while Metal, Financial Services and Bank indices were the top losers, down 0.6% each.

 

FIIs net sold stocks, index futures and stock futures worth Rs 686 cr, 747 cr and 4100 cr respectively. DIIs were net buyers to the tune of Rs 62 cr.

 

Rupee appreciated 2 paise to end at 83.28/$.

 

RBI announced a record dividend of Rs. 2.11 lk cr, which is a jump of 142% over FY23 and 107% higher compared to budget estimate.

 

OUTLOOK

 

Today morning, Nikkei is up half a percent but Hang Seng and Shanghai are down 1.5% and 0.8% respectively. GIFT Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 22795, the top made on 3rd May, was the next target for Nifty while 22300-22250 was the immediate support zone on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty rose to 22629 before closing at 22597.

 

22795, the top made on 3rd May, continues to be next target for Nifty; 22400 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 48644 and 48958, the 50% and 61.8% retracement levels of the recent 49975-47313 fall, are the next upside levels to eye; 47350 is the immediate support.

 

ITC will report its quarterly earnings today.

Investment in securities market is subject to market risk.

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