STAY LONG WITH THE STOP-LOSS OF 18050

 

STAY LONG WITH THE STOP-LOSS OF 18050

 

WORLD MARKETS

 

U.S. indices fell 0.2%-0.6%, ahead of key inflation reports and White House meeting on debt ceiling.

 

President Joe Biden held a key meeting with congressional leaders after the bell Tuesday, but comments from leadership on both sides suggested that little progress was made.

 

U.S. 10-year treasury yield rose 1 bps to 3.522%. Dollar index rose 0.3% to 101.65. Gold rose 0.7% to $2034 per ounce.

 

Brent crude rose 0.3% to $77.23 a barrel and WTI crude rose 0.5% to $73.49.

 

In Europe, FTSE and CAC fell 0.2% and 0.6% respectively while DAX was little changed.

 

Chinese imports contracted sharply in April from a year earlier while exports grew more slowly than in March.

 

AT HOME

 

After rising nearly half a percent in the morning, benchmark indices gave away all the gains in noon to end flat. Sensex settled at 61761, down 3 points while Nifty added 2 points to finish at 18266. Nifty mid-cap and small-cap indices too ended little changed. Nifty PSU Bank index tumbled 2.8%, becoming top loser among the sectoral indices, followed by 0.4% lower FMCG index. IT and Auto indices were the top gainers, up 0.7% and 0.5% respectively.

 

FIIs net bought stocks and stock futures worth Rs 1942 cr and 60 cr respectively but net sold index futures worth Rs 516 cr. DIIs were net buyers to the tune of Rs 405 cr.

 

Rupee depreciated 24 paise to end at 82.04/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-0.9% and SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 18447, the 78.6% retracement level of the entire 18887-16828 fall, is the next upside level to eye while 18050-18000 is the support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 18344, slipped to end at 18266. The benchmark is set to open near 18300 today.

 

18447, the 78.6% retracement level of the entire 18887-16828 fall, continues to be next upside level to eye; 18050 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43740, the top made last week, is the resistance to eye; 42582, the low made last week, is the immediate support. 

 

Dr Reddy's and L & T will report their quarterly earnings today.

Investment in securities is subject to market risk. Check the link https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.

18447 IS NEXT TARGET; 18050-18000 IS THE SUPPORT AREA

 

18447 IS NEXT TARGET; 18050-18000 IS THE SUPPORT AREA

 

WORLD MARKETS

 

Dow fell 0.2%, S & P 500 was little changed while Nasdaq rose 0.2%.

 

US 10-year treasury yield rose 7 bps to 3.511%, rising for the third consecutive day. Dollar index inched up 0.1% to 101.39. Gold rose 0.2% to $2020 per ounce.

 

Brent crude rose 2.2% to $76.95 a barrel and WTI crude gained 2.5% to $73.12.

 

In Europe, FTSE and CAC rose 1% and 0.1% respectively while DAX was little changed.

 

AT HOME

 

Benchmark indices surged 1.1% each, posting their biggest rise since 31st March. Sensex settled at 61764, up 710 points while Nifty added 195 points to finish at 18264. Nifty mid-cap and small-cap indices gained 1% and 0.9% respectively. Except 0.9% and 0.6% lower PSU Bank and Media indices respectively, all the NSE sectoral indices ended higher, with Auto and Private Bank indices being top gainers, up 1.8% and 1.7% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2124 cr, 1307 cr and 2884 cr respectively. DIIs were net buyers to the tune of Rs 245 cr.

 

Rupee ended unchanged at 81.80/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.7% while Hang Seng and Shanghai are down 0.4% and 0.1% respectively. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 18267, the top made last week, was the immediate hurdle, upon crossover of which, 18447, the 78.6% retracement level of the entire 18887-16828 fall, would be next upside level to eye; We had also said that 18000 was the immediate support on the way down.

 

Nifty soared to touch a high of 18286 before closing at 18264.

 

18447, the 78.6% retracement level of the entire 18887-16828 fall, is the next upside level to eye; 18050-18000 is the support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43740, the top made last week, is the resistance to eye; 20-DMA, placed around 42500, is immediate support. 

18000 IS IMMEDIATE SUPPORT; 18267 IS IMMEDIATE HURDLE

 

18000 IS IMMEDIATE SUPPORT; 18267 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices surged 1.6%-2.2%, snapping a 4-day losing streak, as regional bank shares climbed off their lows and Apple jumped after posting better-than-expected quarterly earnings.

 

U.S. economy added 253,000 jobs in April, higher than the estimated 180,000 number. The unemployment rate came in at 3.4%, below an estimate of 3.6%. Average hourly earnings rose at an annual rate of 4.4%, above expectations for a 4.2% increase.

 

Shares of regional banks surged after JPMorgan upgraded Western Alliance, Zions Bancorp and Comerica to overweight.

 

US 10-year treasury yield rose 6 bps to 3.441%. Dollar index fell 0.2% to 101.28. Gold tumbled 1.7% to $2016 per ounce.

 

Brent crude surged 3.9% to $75.30 a barrel while WTI settled up 4.1% at $71.34 after four days of declines that sent the contract to lows last seen in late 2021.

 

European markets gained 1%-1.4%.

 

For the week, Dow fell 1.2%, S & P 500 eased 0.8% while Nasdaq inched up 0.1%. In Europe, FTSE and CAC fell 1.2% and 0.8% respectively while DAX rose quarter of a percent. In Asia, Nikkei, Hang Seng and Shanghai rose 1%, 0.8% and 0.3% respectively while Nifty was flat.

 

Brent finished the week with a decline of about 5.3%, while WTI plunged 7.1%, extending the losing streak to third week in a row.

 

AT HOME

 

Sensex and Nifty nosedived 1.1% and 1% respectively, suffering worst cut since 13th March. Sensex settled at 61054, down 695 points while Nifty lost 186 points to finish at 18069. Nifty mid-cap and small-cap indices fell 0.7% and 0.8% respectively. Nifty Bank and Financial Services indices were the top losers among the sectoral indices, down 2.3% each while Consumer Durables and Auto indices were the top gainers, up 1.1% and 0.4% respectively.

 

FIIs net bought stocks worth Rs 778 cr but net sold index futures and stock futures worth Rs 804 cr and 2126 cr respectively. DIIs were net sellers to the tune of Rs 2199 cr.

 

For the week, Sensex and Nifty ended flat.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.2% and 0.6% respectively while Nikkei is down 0.6%. SGX Nifty is suggesting around 25 points higher start for our market.

 

In Friday's report we had said that 18447, the 78.6% retracement level of the entire 18887-16828 fall, was the next big target to eye while immediate support on the hourly chart had moved up to 18040, with the stop-loss of which, trading longs could be held on to.

 

Nifty plunged to 18055 before closing at 18069.

 

18267, the top made last week, which roughly coincided with the top made in January, is the immediate hurdle, upon crossover of which, 18447, the 78.6% retracement level of the entire 18887-16828 fall, would be next upside level to eye; On the way down, 18000 is the immediate support, upon breach of which, 17850, around which 20-DMA as well as top made in mid-April is placed, would be next downside level to eye.

 

For Banknifty, 20-DMA, placed around 42350, is the next downside target, below which, 42000-41800 would be next support area; 43300 is the immediate hurdle on intraday chart, above which, 43740, the top made last week, would be bigger hurdle to eye.

 

UPL will report its quarterly earnings today.

 

TRAIL STOP-LOSS TO 18040

 

TRAIL STOP-LOSS TO 18040

 

WORLD MARKETS

 

U.S. indices fell 0.5%-0.9%, extending the losing streak to fourth straight day, as contagion fears in the regional bank space continued to weigh on sentiment. Dow turned negative for 2023.

 

Shares of PacWest, a California bank, tanked by more than 50% on news that the  bank has been assessing strategic options, including a possible sale.  Western Alliance tumbled 38%.

 

U.S. 10-year treasury yield rose 4 bps to 3.382%. Dollar index rose 0.2% to 101.44. Gold inched up a third of a percent to $2050 per ounce.

 

ECB delivered a widely expected 25 basis point interest rate hike. This was the smallest hike by ECB since it started lifting rates last summer, but the bank also signaled that more tightening would be needed to tame inflation.

 

Brent futures settled up 17 cents at $72.50 a barrel and WTI crude settled down 4 cents at $68.56.

 

European markets fell 0.5%-1.1%.

 

AT HOME

 

Benchmark indices surged nine tenth of a percent each, posting their best day in a month and closed at the highest level after mid-December 2022. Sensex settled at 61749, up 555 points while Nifty added 165 points to finish at 18255. Nifty mid-cap and small-cap indices gained 0.6% and 0.8% respectively. Except 0.1% lower FMCG index, all the NSE sectoral indices ended higher, with Nifty Financial Services index on the top, up 1.7%, followed by 1.2% higher PSU Bank and Metal indices.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1415 cr, 415 cr and 190 cr respectively. DIIs were net buyers to the tune of Rs 442 cr.

 

Rupee appreciated 1 paise to end at 81.80/$.

 

Hero Motocorp beat expectations all parameters with margins rising 180 bps.

 

OUTLOOK

 

China’s Caixin services PMI for April slipped to 56.4 from March’s reading of 57.8 but remained in expansion while the Caixin manufacturing PMI fell into contraction territory.

 

Nikkei is shut today as well while Hang Seng and Shanghai are up 1% and 0.2% respectively. SGX Nifty is suggesting around 40 points lower start for our market.

 

In yesterday's report we had said that 18252, the top made in January, continued to be next upside target while 17900-17850 continued to be immediate support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged to touch a high of 18267 before closing at 18255.

 

18447, the 78.6% retracement level of the entire 18887-16828 fall, is the next big target to eye; Immediate support on the hourly chart has moved up to 18040, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 44151, the top made in December 2022, is the next upside levels to eye; 43100 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

Britannia, Marico and Bharat Forge will report their quarterly earnings today.

 

17900-17850 CONTINUES TO BE SUPPORT AREA

 

17900-17850 CONTINUES TO BE SUPPORT AREA

 

WORLD MARKETS

 

U.S. indices fell 0.5%-0.8% after the Fed decision, extending the losing streak to third straight day.

 

Federal Reserve raised interest rates by a quarter of a percentage point and signaled it may pause further increases as it dropped the line from the March statement that said, “the Committee anticipates that some additional policy firming may be appropriate.”.

 

U.S. private employers boosted hiring in April and U.S. services sector maintained steady growth in April.

 

US 10-year treasury yield fell 9 bps to 3.341%. Dollar index fell 0.7% to 101.22. Gold jumped 1.3% to $2043 per ounce.

 

Brent futures plunged 4% to $72.33 a barrel, their lowest close since December 2021. WTI fell 4.3%, to $68.60.

 

European markets rose 0.2%-0.8%

 

AT HOME

 

Benchmark indices fell three tenth of a percent each, marking the first negative session in nine. Sensex settled at 61193, down 161 points while Nifty lost 58 points to finish at 18089. Nifty mid-cap index rose 0.3% but small-cap index eased 0.1%. Nifty IT, Metal and PSU Bank indices were the top losers among the sectoral indices, down 1% each while FMCG and Realty indices were the top gainers, up 0.8% and 0.3% respectively.

 

FIIs net bought stocks worth Rs 1338 cr but net sold index futures and stock futures worth Rs 1452 cr and 772 cr respectively. DIIs were net sellers to the tune of Rs 584 cr.

 

Rupee appreciated 6 paise to end at 81.82/$.

 

Titan Q4 numbers were largely in-line with estimate but margin was a miss.

 

OUTLOOK

 

Nikkei is shut today while Hang Seng is up 0.6% and Shanghai is little changed. SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 18252, the top made in January, continued to be next upside target while 17900-17850 was the immediate support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty fell to 18042 before closing at 18089.

 

18252, the top made in January, continues to be next upside target; 17900-17850 continues to be immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43578, followed by 44151, the tops made in January 2023 and December 2022 respectively, are the next upside levels to eye; 42900-42800 continues to be immediate support zone, with the stop-loss of which, trading longs can be held on to.

18252 IS NEXT TARGET; 17900-178500 IS THE SUPPORT AREA

 

18252 IS NEXT TARGET; 17900-178500 IS THE SUPPORT AREA

 

WORLD MARKETS

 

US indices fell 1.1%-1.2%, extending the losing streak to second straight sessions, on fears around contagion in the regional banking sector.

 

Economic data was weak. U.S. job openings fell for a third straight month and layoffs increased to the highest level in more than two years. Factory orders rose by 0.9% in March, below expectations for a 1.1% gain.

 

US 10-year treasury yield fell 14 bps to 3.43%. Dollar index fell 0.2% to 101.93. Gold jumped 1.7% to $2017 per ounce.

 

Brent futures tumbled 5% to $75.32 a barrel while WTI fell 5.3% to end at $71.66. That was the lowest close for both benchmarks since March 24 and was also their biggest one-day percentage declines since early January.

 

In Europe FTSE and DAX fell 1.2% each while CAC slipped 1.4%.

 

AT HOME

 

Sensex and Nifty gained 0.4% and 0.5% respectively to close at the highest level after 20th December 2022 and 18th January 2023 respectively. Sensex added 242 points to settle at 61354 while Nifty finished at 18147, up 82 points. Nifty mid-cap and small-cap indices rose 1% and 0.7% respectively to close at the highest level after 19th December and 3rd January respectively.

 

Nifty Metal and Oil & Gas indices climbed 1.4% and 1.2% respectively, becoming top gainers among the sectoral indices while Pharma and FMCG indices were the top losers, down 0.2% and 0.1% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1997 cr, 1983 cr and 1411 cr respectively. DIIs were net sellers to the tune of Rs 394 cr.

 

Rupee depreciated 5 paise to end at 81.88/$.

 

Tata Steel reported an all-round beat in Q4 results while Ambuja Cement put-up a strong show on the back of healthy margins.

 

OUTLOOK

 

Markets in Japan and mainland China are closed for a holiday. Hang Seng is down 1.5% and SGX Nifty is suggesting around 80 points lower start for our market.

 

In yesterday's report we had said that 18252, the top made in January, was the next upside target while immediate support on the hourly chart had moved up to 17825, with the stop-loss of which trading longs could be held on to.

 

Nifty, after touching a high of 18181, closed at 18147.

 

18252, the top made in January, continues to be next upside target; 17900-17850 is the immediate support area, with the stop-loss of which, trading longs should be held on to.

 

For Banknifty, 43578, followed by 44151, the tops made in January 2023 and December 2022 respectively, are the next upside levels to eye; 42900-42800 is the immediate support zone, with the stop-loss of which, trading longs can be held on to.

 

Titan will report it's quarterly earnings today.

 

TRAIL STOP-LOSS TO 17825

 

TRAIL STOP-LOSS TO 17825

 

WORLD MARKETS

 

Yesterday, US indices ended flat to marginally lower, following JP Morgan's takeover of troubled First Republic Bank.

 

JPMorgan Chase won the weekend auction for troubled First Republic Bank. As part of the agreement, JPMorgan acquired all of the regional bank’s deposits and a “substantial majority of assets.”

 

Treasury Secretary Janet Yellen warned the U.S. may run out of measures to pay its debts as early as June 1 if the debt ceiling is not raised.

 

ISM manufacturing PMI rose to 47.1 last month from 46.3 in March, which was the lowest reading since May 2020. Construction spending increased more than expected in March, boosted by investment in nonresidential structures, but single-family homebuilding remained depressed amid higher mortgage rates.

 

US 10-year treasury yield jumped 15 bps to 3.574%. Dollar index rose 0.4% to 102.12. Gold fell 0.4% to $1982 per ounce.

 

Brent crude fell 1.3%, to $79.31 a barrel, while WTI crude slid 1.5%, to $75.66.

 

Main European markets gained 0.1%-0.8%.

 

China’s manufacturing PMI declined to 49.2 from 51.9 in March, slipping below the 50-point mark that separates expansion and contraction.

 

On Friday, Dow and S & P 500 gained 0.8% each while Nasdaq rose 0.7%.

 

The personal consumption expenditures (PCE) price index edged 0.1% higher in March after rising 0.3% in February. Y-o-Y rise stood at 4.2%, down from 5.1% in February. Excluding the volatile food and energy components, the PCE price index inched up 0.3% after increasing at the same rate in February. On a year-on-year basis, it rose 4.6% in March after rising 4.7% in February. Meanwhile, the final University of Michigan consumer sentiment index stood at 63.5 in April, up from a three-month low 62 in March.

 

Shares of troubled First Republic Bank plunged more than 43% on reports that the most likely outcome for the regional bank is the Federal Deposit Insurance Corporation taking receivership.

 

US 10-year treasury yield fell 10 bps to 3.428%. Dollar index rose 0.2% to 101.67. Gold inched up 0.1% to $1990 per ounce.

 

Brent futures for June delivery rose 1.5% to $79.50 a barrel. The more actively traded July contract was up 2.8% at $80.40. WTI crude settled up 2.7% at $76.78 a barrel.

 

Main European markets gained 0.1%-0.8%. Preliminary figures showed the euro zone economy grew by 0.1% in the first quarter, below expectation of a 0.2% growh, as Germany’s GDP flat lined over the period.

 

Earlier, Bank of Japan kept its monetary policy unchanged in the first monetary policy meeting chaired by new governor Kazuo Ueda.

 

For the week, Dow and S & P 500 rose 0.9% while Nasdaq climbed 1.3%. In Europe, FTSE and CAC fell 0.6% and 1.1% respectively but DAX rose 0.3%. In Asia, Hang Seng fell 0.9% but Shanghai, Nikkei and Nifty gained 0.7%, 1% and 2.4% respectively.

 

For the month, Dow and S & P 500 rose 2.5% and 1.5% respectively while Nasdaq was little changed.

 

AT HOME

 

Sensex and Nifty surged 0.8% each to close at the highest level after 16th January and 24th February respectively. Sensex settled at 61112, up 463 points while Nifty added 150 points to finish at 18065. Nifty mid-cap and small-cap indices gained 1.2% and 0.8% respectively to close at the highest level after 3^RD January 2023 and 13^th January respectively. Except 0.3% lower Consumer Durables index, all the NSE sectoral indices ended higher, with PSU Bank and Media indices being the top gainers, up 2.4% and 1.8% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 264 cr, 184 cr and 211 cr respectively. DIIs were net buyers to the tune of Rs 3304 cr.

 

Rupee appreciated 1 paise to end at 81.83/$.

 

For the week, Sensex and Nifty gained 2.4% and 2.5% respectively. For the month, Sensex and Nifty gained 3.6% and 4.1% respectively.

 

GST collection rose 12% to an all-time high of Rs. 1.87 lakh cr. in April.

 

Kotak Mahindra Bank reported strong set of numbers with ROA at 3%, NII growth at 35% and Net Profit growth at 26%.

 

OUTLOOK

 

Today morning, Nikkei is marginally in the red while Hang Seng is marginally higher. Shanghai is shut for a holiday. SGX Nifty is trading around 18240, suggesting nearly 130 points higher start when compared to Friday's close of Nifty futures.

 

In Friday's report we had said that 18135, the top made in February, was the next upside target to eye while immediate support on the hourly chart had moved up to 17750, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged to 18089 before closing at 18065 and is set to open above 18150 today.

 

18252, the top made in January, is the next upside target, above which, 18447, the 78.6% retracement level of the entire 18887-16828 fall, would be the next big target; Immediate support on the hourly chart has moved up to 17825, with the stop-loss of which trading longs can be held on to.

 

For Banknifty, 43578, followed by 44151, the tops made in January 2023 and December 2022 respectively, are the next upside levels to eye. 42800-42700 is the immediate support zone, with the stop-loss of which, trading longs can be held on to.