NIFTY HEADED TO 23200, 23800 ON EXIT POLL CHEER

 

NIFTY HEADED TO 23200, 23800 ON EXIT POLL CHEER

 

WORLD MARKETS

 

Dow and S & P 500 climbed 1.5% and 0.8% respectively while Nasdaq ended flat on Friday. Dow had its best session of the year.

 

The core reading for the personal consumption expenditures price index, which excludes food and energy costs, rose 0.2% in April, matching estimate. On a yearly basis, PCE was up 2.8% , which was 0.1% above the forecast. Including food and energy prices, PCE was up 0.3% for the month and 2.7% year over year.

 

U.S. 10-year treasury yield fell 5 bps to 4.502%. Dollar index fell 0.1% to 104.62. Gold fell 0.7% to $2327 per ounce.

 

WTI crude futures fell 1.2% to $77.99 while Brent futures fell 0.3% to $81.62 a barrel.

 

In Europe, FTSE and CAC rose 0.5% and 0.2% respectively while DAX was flat. Euro zone inflation rose to 2.6% in May, slightly higher than the 2.5% expectation.

 

The S&P 500 and Nasdaq snapped five-week win streaks with slides of 0.5% and 1.1%, respectively. The Dow slipped 1%, marking a second straight week of losses. For the month, Dow added 2.3% while the S&P 500 rose 4.8%. The Nasdaq gained 6.9%, notching its best month going back to November.

 

U.S. oil fell 6% in May, while global benchmark Brent dipped 7.1%. Gold was up 1.8% for the month.

 

AT HOME

 

Benchmark indices ended marginally higher after a choppy session, snapping a 5-day losing streak. Sensex settled at 73961, up 75 points while Nifty added 42 points to finish at 22530. Nifty mid-cap and small-cap indices rose half a percent each. Nifty Realty and Metal indices climbed 2.3% and 1.9% respectively, becoming top gainers among the sectoral indices while Media and IT indices were the top losers, down 1.4% and 1.3% respectively.

 

FIIs net bought stocks and stock futures worth Rs 1613 cr and 4971 cr respectively but net sold index futures worth Rs 1051 cr. DIIs were net buyers to the tune of Rs 2114 cr.

 

Rupee depreciated 14 paise to end at 83.46/$.

 

For the week, Sensex and Nifty fell 1.9% and 1.8% respectively, snapping a 2-week winning streak. For the month, Sensex and Nifty fell 0.7% and 0.3% respectively, snapping a 3-month winning streak.

 

India's GDP grew 7.8% in January-March quarter, slower than the upwardly revised 8.6% in October-December period but above the 6.2% recorded in fourth quarter of the previous fiscal year. This helped push full year growth to 8.2%, higher than the second advance estimate of 7.6%. This is higher than most estimates and above RBI's 7% projection. FY24 fiscal deficit stood at 5.6%, lower than the 5.8% estimated by the government.

 

Various exit polls released on Saturday evening projected anywhere between 353 to 415 seats for the BJP led NDA alliance.

 

OUTLOOK

 

Today morning, GIFT Nifty is suggesting more than 600 points gap-up start for our market.

 

In Friday's report we had said that 22417, the low made Thursday, which roughly coincided with 34-DMA, was the important immediate support while 22850 was the immediate hurdle on the hourly chart.

 

Nifty touched a high of 22653 before closing at 22530. The benchmark is set to open above 23000 today.

 

23200, around which a rising trendline adjoining recent monthly tops is placed, is the next upside level to eye, upon crossover of which, 23800 would be next major target; 22417, the low made last week, roughly coincided with 34-DMA and hence is the important immediate support.

 

For Banknifty, 49975, the top made on 30th April, is the immediate target, above which, 51300 would be next big level to eye; 34-DMA, placed around 48300, is immediate support.

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