21300-21100 IS THE IMPORTANT SUPPORT ZONE; 22700 IMMEDIATE HURDLE

 

21300-21100 IS THE IMPORTANT SUPPORT ZONE; 22700 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow rose 0.4% while S & P 500 and Nasdaq gained 0.2% each.

 

U.S. job openings fell more than expected in April to their lowest in more than three years, according to the Job Openings and Labor Turnover Survey, or JOLTS report.  Factory orders rose 0.7%, matching the revised pace in March.

 

U.S. 10-year treasury yield fell 6 bps to 4.33%. Dollar index inched up 0.1% to 104.15. Gold fell 1% to $2326 per ounce.

 

WTI crude futures fell 1.3% to $73.25 while Brent futures fell 0.6% to $77.52 a barrel.

 

European markets fell 0.4%-1.1%.

 

AT HOME

 

Benchmark indices collapsed as actual results of the Lok Sabha elections turned out be far less encouraging for the BJP led NDA than the exit polls had predicted. Sensex and Nifty nosedived 5.7% and 5.9% respectively, their worst percentage cut since 23rd March 2020. Sensex lost 4389 points to settle at 72079 while Nifty finished at 21884, down 1379 points. Nifty mid-cap and small-cap indices plunged 7.9% and 8.2% respectively. Except 1% higher FMCG index, all the NSE sectoral indices ended lower, with PSU Bank and Oil & Gas indices leading the losses, down 15.1% and 11.8% respectively.

 

FIIs net sold stocks and index futures worth Rs 12436 cr and 9843 cr respectively but net bought stock futures worth Rs 225 cr. DIIs were net sellers to the tune of Rs 3319 cr.

 

Rupee depreciated 39 paise to end at 83.53/$.

 

As per the final tally, NDA alliance won 292 seats with BJP, TDP and JDU winning 240, 16 and 12 seats respectively. I.N.D.I.A. alliance won 234 seats with Congress, SP and TMC winning 99, 37 and 29 seats respectively.

 

OUTLOOK

 

Today morning, Hang Seng is up 1%, Shanghai is marginally in the red while Nikkei is down 1%. GIFT Nifty is suggesting around 130 points higher start for our market.

 

In yesterday's report we had said that 23600, followed by 23800 were the next upside levels to eye while 22800 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty broke 22800 and plunged all the way to 21281 before closing at 21884.

 

21281, the low mad yesterday, roughly coincided with 200-day exponential moving average while 200-Day Simple moving average is placed around 21100, making 21300-21100 important support area; 22700 is the immediate hurdle on the hourly chart.

 

For Banknifty, 46077, the low made yesterday, coincided with 200-DMA and hence is the immediate support to eye. If it breaks, 20-month moving average, placed around 44700, would be next downside level to eye; 49000 is the immediate hurdle on the hourly chart.

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