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JERUSALEM — A spokesman for Gaza’s second-largest terror group, Palestinian Islamic Jihad (PIJ), shared inside information on the organization’s propaganda tactics and its cynical manipulation of the media during an interrogation with Israel’s military intelligence agency following his arrest at Al-Shifa Hospital in Gaza City last month.

An eight-minute video of the interrogation of Tariq Salami Otha Abu Shlouf, a spokesperson for PIJ’s political bureau, was published by the Israeli army on Monday. In the clip, Shlouf can be heard detailing how the U.S.-designated terror group uses both Arabic and international media to create a false narrative about what is happening in the Gaza Strip. 

He also spoke about how terrorists have widely used all of Gaza’s hospitals and many of its ambulances while battling Israeli forces during the six-month war. 

In one admission, the spokesman said an explosion in one of Gaza’s main hospitals early on in the fighting was caused by a misfired PIJ rocket, not by Israel, as many international outlets rushed to report. 

Shlouf said the PIJ’s leadership ‘fabricated the story about an Israeli strike on the hospital’ in an attempt to ‘erase’ the group’s direct involvement in the incident, which killed more than 100 people, according to U.S. intelligence agencies.

‘It is true that the story is false, but we wanted to promote it,’ the spokesman said, describing how the terror group’s communication department made decisions based on ‘certain interests’ and ‘to leverage a certain narrative.’

‘We relied on the stories in the international press,’ Shlouf told the interrogators. 

‘Most international media will undoubtedly not even mention the revelations of this Islamic Jihad spokesperson in their reporting,’ Simon Plosker, editorial director at HonestReporting, an Israeli organization that monitors coverage of Israel in the international press, told Fox News Digital.

‘If they did mention it, then they would have to call into question their entire coverage of the conflict, which would highlight how the foreign press has either been manipulated or even willingly participated in a sophisticated terrorist propaganda operation at Israel’s expense.’ 

Terrorists affiliated with Palestinian Islamic Jihad joined the thousands of Hamas terrorists who infiltrated southern Israel Oct. 7, participating in the widespread massacre of some 1,200 people, mostly civilians, and in the kidnapping of another 250. 

The mass terror attack, which both Hamas and PIJ terrorists documented with GoPros and their cellphones, sparked a war with Israel.

Since the start of the war, the terror groups have operated in tandem to distort the images coming out of Gaza and blame the documented suffering of more than 2 million civilians only on Israel, Shlouf told Israeli interrogators. 

He admitted that the PIJ’s goal was to deflect attention of Palestinian civilians suffering from the dire living conditions caused by the ongoing war it helped to ignite. And the group used standard talking points, including telling journalists, ‘It’s our right to live,’ ‘we want the situation to return to normal,’ and ‘we want our children to live like any other children in the world.’ 

Shlouf also described how top PIJ leader Ziyad al-Nakhalah was in daily contact with the organization’s communication department, which also worked closely with its counterparts in Hamas to carve the desired narrative. He confessed that PIJ’s communication team checked over journalist’s stories prior to their publication. If they did not fit the group’s desired narrative, then they would prevent them from going out. 

‘So, if it’s not to your liking, it doesn’t get published?’ the interrogator asked Shlouf. 

‘Of course not, because the journalist needs us for more interviews,’ he responded.

‘This is hardly surprising, for years we have observed how Islamist terror groups use civilian infrastructure to recruit terrorists into their ranks, promote terrorism and launch attacks,’ Khaled Hassan, a political risk and intelligence analyst with over 13 years of experience working in the Middle East, told Fox News Digital. 

He said that, consequently, in Egypt, Saudi Arabia and many majority-Muslim countries, ‘mosques and hospitals affiliated with the Muslim Brotherhood and other Islamist terror groups are closely monitored 24/7, 365 days a year.’ 

‘Moreover, their modus operandi also fundamentally relies on creating the impression that they are the victims of oppression and tyranny,’ said Hassan. ‘For that purpose, the killing of their own and civilians generally is to them an aim that serves a greater purpose.

‘Western governments largely overlook these widely recognized facts when dealing with Israel’s war on Hamas,’ he added. ‘They empower and embolden terrorists,’ making it a successful strategy. 

Israeli Canadian author Matti Friedman, who previously worked as a correspondent for The Associated Press in Jerusalem, said that much of the mainstream press was clearly ‘telling a story from Gaza based on information that isn’t just wrong but is propaganda.’

‘Groups like Hamas and Palestinian Islamic Jihad know exactly what they’re doing — causing extreme harm to innocents by exploiting civilian cover, then blaming Israel for it and using the resulting international outrage to tie Israel’s hands,’ Friedman, who explored the international media’s bias on Israel in an explosive 2014 column. 

‘This interrogation gives us a glimpse of this system, but the real answers to the question of media malfeasance lie with the Western editors, journalists and NGOs who’ve been playing along for years,’ he said.

International media covering the war in Gaza have been highly critical of Israel, especially over its refusal to allow journalists to enter Gaza independently to cover the war. Instead, most of the foreign press has relied on the reports of local Palestinian journalists, some of whom have been accused of being complicit in Hamas’ propaganda machine even as they complain that Israel has purposely targeted them. 

On Monday, the Foreign Press Association (FPA), a nonprofit organization representing journalists from international news organizations reporting from Israel, the West Bank and the Gaza Strip, released a statement criticizing Israel’s policy and pointing out the ‘unprecedented threats and harm’ faced by Palestinian journalists inside Gaza who are ‘courageously covering the story.’

‘The decision whether to be on the ground in Gaza should be up to each individual international media outlet,’ the statement said. ‘The blanket ban has limited the world’s ability to witness the true cost of the war to all sides.’

Lahav Harkov, a veteran journalist, told Fox News digital that while she agreed Israel should allow foreign journalists to report from inside Gaza, ‘that doesn’t mean journalists should shirk the responsibility to consider their sources’ motivations and verify the facts.’

‘It’s been apparent for well over a decade that Gaza is the place where journalistic ethics go to die,’ she said. ‘In 2014, you had journalists reporting on Hamas using the Shifa Hospital for its terrorist operations and then backtracking because Hamas threatened them.’ 

She said the situation had only become worse over the past six months, with major media organizations defending ‘photojournalists who rode along with terrorists who committed the Oct. 7 massacre.’ 

Harkov also noted how reporters were treating the spokespeople for Palestinian Islamic Jihad as ‘credible sources.’

‘The proof is in the kind of reporting they are doing,’ she said, highlighting the Al-Ahli Hospital strike in which the PIJ spokesman ‘spoon-fed them the message’ that it was Israel, when, ‘in reality, it was a PIJ rocket that had misfired.’ 

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War between Iran and Israel would be to no one’s benefit in the region as it would likely end up in a pitched battle that regional forces would keep away from, experts told Fox News Digital. 

‘Frankly, none of the Arab states would want to take either side in this conflict,’ Matt McInnis, senior fellow for the Institute for the Study of War, explained. ‘They may inevitably be drawn into it, and I think that’s one of the things that Iran is very worried about.’

‘[Iran is] not quite sure if Israel’s efforts over the last few years to increase diplomatic and security relationships with states like Saudi Arabia, the Emirates, Qatar, Kuwait and others are sufficient to keep these states out of a larger conflict,’ McInnis added. 

‘Our bases and others in those countries, in a larger and larger conflict as part of our support and defense of Israel is obviously very complicated,’ McInnis explained. ‘I think that on the Iranian side, certainly the Syrians will side with them, but I don’t know what material support that provides aside from potentially allowing Iran to use Syrian territory for attacks.’

Tehran has continued to threaten a response against Israel for the attack on an Iranian consulate in Damascus that killed seven Islamic Revolutionary Guard Corps (IRGC) members, including two generals.

U.S. CENTCOM Gen. Michael Kurilla has been in Israel, where he met with Israeli Minister of Defense Yoav Gallant on Friday to assess military preparedness, moving up his plans due to the threats from Iran, Pentagon Press Secretary Maj. Gen. Pat Ryder confirmed during a press conference Thursday.

U.S. Nation Security Council Coordinator for Strategic Communications John Kirby on Friday told reporters that the U.S. remains in ‘constant communication’ with Israeli counterparts to make sure they are ready for attack but refused to ‘armchair quarterback … in a public way in terms of the conversations we’re having or what we’re seeing in the intelligence picture.’

Jonathan Conricus, a former spokesman for the IDF and now a Senior Fellow at the Foundation for Defense of Democracies (FDD) commented on what he said was the media hype and tension and even a ‘minor panic’ in Israel over the so-called Iranian retaliation against Israel after the Damascus attack last week.

Speaking on FDD’s Morning Brief podcast, he said that while Iran has a lot of options, he said he had ‘quite solid faith in Iranian strategic patience.’

‘They are disciplined, they are long-term thinkers, they do not take rash decisions based on emotions … even though the rhetoric is high,’ Conricus said.

‘I know that it wouldn’t be smart for Iran to attack Israel, because then the distraction in Gaza and Lebanon will become a forgotten issue, and everything will focus on Iran, on its hostile and negative activities in the Middle East, and they themselves will be front and center of Israeli and perhaps U.S. attention, and the Iranians do not want that,’ he added. ‘They don’t want it because it will put focus on their nuclear plans and because it will take pressure off Israel from its fighting in Gaza and Lebanon.’

During an appearance on Friday’s episode of ‘Fox & Friends,’ Gen. Jack Keane of the Institute for the Study of War (IFSW) said an attack will happen at some point, because Iran ‘cannot avoid the international publicity surrounding the taking down of the IRGC headquarters in Syria,’ saying it was ‘just a reality’ but adding that Iran will likely pursue a ‘measured response’ and does not really want escalation. 

Keane suggested that the best way to handle Iran was to destroy its IRGC assets in Iran, because ‘Iran does not want to escalate,’ claiming Iran has ‘a weak air force … a weak navy’ and ‘not particularly well trained or … well equipped’ troops – instead, he argued that Iran relies heavily on its drone and missile arsenal.

‘Iran knows that war with them would destroy their regime economically, and they likely lose it,’ Keane insisted. ‘The leverage has always been on the side of Israel, the United States and the West, but we absolutely refuse to use it.’

McInnis agreed with Keane’s assessment, but he argued that it largely depended on what shape the conflict would take. His estimation determined that in small-scale personnel-driven engagements, Iran could find some gains due to the integration of IRGC personnel with proxy forces such as Hezbollah in Lebanon. 

‘If we got to that point, I think some of those smaller scale operations, on the ground, I think the Iranians are in better shape than they would have been a couple of decades ago,’ McInnis said. 

‘But it is true for a long, all-out war, which I don’t really foresee … I guess that’s a fair critique,’ he continued. ‘They have certainly improved in their ability to coordinate very sophisticated drone cruise and ballistic missile actions, and we look at the classic one in Saudi Arabia in 2019, [which] was the kind of beginning of that period where we have these far more sophisticated capabilities combined with what Lebanese Hezbollah could do.’ 

‘I think both the Iranians and the Israelis are most concerned about if this becomes a ground war, similar or in some ways inspired by the October 7th Hamas attack, where it’s not just missiles and drones but combined with ground operations,’ he explained. 

‘That’s something that, I think in particular, the Israelis and the Iranians are worried we’re going to end up in that type of conflict in southern Lebanon or even in northern Israel struggling to go on as another as a kind of a flashpoint,’ he added. ‘I think that’s where the capabilities of Iran’s axis of resistance, along with the Revolutionary Guard Corps, could still be fairly serious to Israel’s security.’

Bill Roggio, founder and editor of the ‘The Long War Journal,’ stressed Iran’s reliance on proxy groups to wage war and keep enough distance to maintain something of a response without the rampant escalation that would accompany direct response. 

‘I think one of the things that’s kind of misunderstood is that Iran and Israel are already at war, it’s just Iran is doing it via its proxies. Israel is under attack already by the Iranian proxies – but they could be escalating, right?’ Roggio said. ‘So, at the bare minimum, these are Iran’s closest allies in the region, and they do wield significant power: Lebanon, the proxy, particularly in Iraq, essentially running things.’

‘The Saudis have indicated that they really don’t want to be a frontline state,’ Roggio added. ‘They’ve experienced Iranian attacks with drones, and, given Israel’s position in Gaza, I don’t expect the Egyptians or any other Arab country to come to the Israeli side.’

Roggio also noted that Russia and China have a vested political and diplomatic interest in Iran, which they last year invited to join the BRICS economic bloc. Highlighting the ‘tightened’ bonds between the three countries, he argued that Iran and China could provide support that aimed to keep the conflict ‘hot’ but was unclear how that might happen. 

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President Biden cut short his weekend trip to his Delaware beach house and returned to the White House to monitor the crisis in the Middle East amid concerns of a potential, immanent Iranian attack on Israel. 

Biden departed from Rehoboth Beach a day earlier than planned in order to consult with his national security team about events in the Middle East, according to the White House. 

Biden on Friday said he expects Iran to attack Israel ‘sooner than later’ as Tehran continues promising to take revenge for the attack on its Damascus consulate. 

‘I don’t want to get into secure information, but my expectation [is] sooner than later,’ Biden told a reporter, adding: ‘We are devoted to the defense of Israel. We will support Israel. We will defend, help defend Israel and Iran will not succeed.’ 

The U.S. and others have attributed the Damascus consulate attack to Israel, but no Israeli official has taken credit for the strike, which killed seven Islamic Revolutionary Guard Corps (IRGC) members. 

Secretary of Defense Lloyd J. Austin III spoke with Israeli Minister of Defense Yoav Gallant on Saturday to discuss urgent regional threats, according to a readout presented to reporters by Pentagon Press Secretary Maj. Gen. Pat Ryder. 

Austin told the Israeli official that Israel could count on full U.S. support if Iran or any regional proxies attack, according to the readout. 

U.S. National Security Advisor Jake Sullivan also spoke with his Israeli counterpart, reiterating America’s ‘ironclad’ commitment to the security of Israel. 

Iran has continually promised to avenge the strike on the consulate, and on Saturday appeared to ratchet tensions up even more as IRGC troops seized a Portuguese-flagged ship, the MSC Aries. Iranian officials claimed the ship was owned by an Israeli, but the U.S. disputed this and claimed the ship belonged to a British company. 

‘We strongly condemn the Iranian seizure of the Portuguese flagged, British-owned MSC AIRES in international waters,’ NSC spokesperson Adrienne Watson said of the seizure, for which Iran did not provide any explanation. ‘The crew is comprised of Indian, Filipino, Pakistani, Russian and Estonian nationals.’

‘We call on Iran to release the vessel and its international crew immediately,’ Watson insisted. ‘Seizing a civilian vessel without provocation is a blatant violation of international law, and an act of piracy by the Islamic Revolutionary Guards Corps, a designated Foreign Terrorist Organization.’

‘It must be condemned unequivocally, and we will work with our partners to hold Iran to account for its actions,’ she added. 

Iran earlier this week reportedly indicated to U.S. officials that it would seek a non-escalatory response without providing any more specific details.  

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The White House vowed Saturday that the United States’ support for Israel’s security is ‘ironclad,’ pledging to stand with the Jewish state and ‘support their defense’ after Iran launched an aerial drone attack towards the country Saturday afternoon. 

Iran launched drones from its own territory toward Israel late Saturday, days after its Supreme Leader warned it would hit back in response to an airstrike on the Iranian consulate in Syria that left several generals dead. 

‘Iran has begun an airborne attack against Israel,’ White House National Security Council spokesperson Adrienne Watson said in a statement Saturday. ‘President Biden is being regularly updated on the situation by his national security team and will meet with them this afternoon at the White House.’ 

The White House said the president’s team ‘is in constant communication with Israeli officials as well as other partners and allies.’ 

‘This attack is likely to unfold over a number of hours,’ Watson said. 

‘President Biden has been clear: our support for Israel’s security is ironclad,’ Watson continued. ‘The United States will stand with the people of Israel and support their defense against these threats from Iran.’ 

The president is expected to meet with national security officials to discuss the events in the Middle East in the White House Situation Room Saturday evening. The officials will likely include Defense Secretary Lloyd Austin, Secretary of State Antony Blinken, Chairman of the Joint Chiefs of Staff General Charles Q. Brown, CIA Director Bill Burns, Director of National Intelligence Avril Haines, National Security Advisor Jake Sullivan and more. 

The president was briefed earlier in the day by his national security team. 

Earlier in the day, Sullivan said he spoke his Israeli counterpart, National Security Advisor Hanegbi. Sullivan said that during the call, he ‘reiterated the United States’ ironclad commitment to the security of Israel.’ 

Austin spoke with Israeli Minister of Defense Yoav Gallant to ‘reiterate unwavering U.S. support for Israel’s defense.’ 

‘The United States stands with Israel amid threats from Iran and its regional proxies,’ Austin said Saturday. 

Saturday afternoon, IDF Spokesperson Rear Admiral Daniel Hagari confirmed that Iran had ‘launched a direct attack from Iranian soil toward the State of Israel.’ 

‘We are closely monitoring Iranian killer drones that are en-route to Israel sent by Iran,’ Hagari said. ‘This is a severe and dangerous escalation. Our defensive and offensive capabilities are at the highest level of readiness ahead of this large- scale attack from Iran.’ 

Hagari added that ‘together with our partners, the Israel Defense Forces is operating at full-force to defend the State of Israel and the people of Israel.’ 

‘This is a mission that we are determined and ready to fulfill,’ he said. 

Earlier Saturday, Israeli Prime Minister Benjamin Netanyahu said Israel had for weeks ‘been preparing for the possibility of a direct attack from Iran.’ 

Netanyahu said Israel’s ‘air defenses are deployed, we are ready for any scenario, both in attack and in defense.’ 

‘I established a clear principle — whoever hurts us, we hurt him. We will protect ourselves from any threat and we will do so with coolness and determination,’ he said.

Israel has not claimed responsibility for the attack on Iran’s consulate in Damascus. 

This is a developing story. Please check back for updates. 

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Lawmakers reacted after Iran launched drones from its own territory toward Israel late Saturday, calling for the White House to ‘stand firm’ and ‘stop coddling Iran.’ 

Speaker Mike Johnson pledged America’s ‘full resolve’ to stand with Israel.

‘As Israel faces this vicious attack from Iran, America must show our full resolve to stand with our critical ally,’ Johnson said in a statement. ‘The world must be assured: Israel is not alone.’

Johnson promised to ‘insist upon a proper response’ from the White House.

‘I will continue to engage with the White House to insist upon a proper response,’ he said. ‘The Biden Administration’s undermining of Israel and appeasement of Iran have contributed to these terrible developments.’

‘Now more than ever, we must stand with Israel,’ former House Speaker Kevin McCarthy, R-Calif., wrote in an X post.

Sen. Roger Wicker, R-Miss., the highest-ranking Republican on the Senate Armed Services Committee, said that the U.S. commitment to Israel is ‘unwavering.’

‘This is the moment for the United States to show we stand together with our allies. Our shared enemies, including Iran and their proxies, need to know our commitment is unwavering,’ he said in a press release. ‘We must join with Israel to ensure that Iran’s aggression is met with resolute action and resounding strength.’

Sen. Ted Cruz, R-Texas, member of the Senate Foreign Relations Committee, condemned the Iran attack on Israel, while placing the blame on the Biden administration.

‘Iran has encircled Israel and has been attacking our Israeli allies from almost every front for months. They have launched attacks from Syria, Iraq, Yemen, the West Bank, Hezbollah-controlled Lebanon, and of course the Hamas-controlled Gaza Strip. Now they have escalated by launching attacks directly from Iranian territory,’ Cruz said in a statement. ‘These attacks are enabled and financed by deliberate policy choices made by Joe Biden and Biden officials, who have allowed roughly $100 billion to flow to Iran since 2021. Americans and Israelis have been made catastrophically more vulnerable by these policies.’

Rep. Nancy Mace, R-S.C., said that President Biden must ‘stand firm’ with Israel and ‘stop coddling’ Iran.

‘Iran’s drone strikes show us President Biden’s approach with Iran and the Middle East is backwards,’ she wrote in an X post. ‘Now as we risk entering WWIII, the U.S. must stand by Israel’s commitment to democracy. The president must stand firm, and stop coddling Iran immediately.’

Representative Mike Lawler, R-N.Y., said that the Iranian regime’s ‘consistent’ use of proxies ‘warrants’ immediate U.S. action.

‘Enough is enough-the Biden administration must take concrete steps to support Israel, our closest ally,’ Lawler said in a press release. ‘This is a direct Iranian attack, after the regime has consistently used it proxies, warrants immediate U.S. action to back any Israeli response.’

South Dakota Gov. Kristi Noem wrote that she ‘expects’ the Biden administration to ‘hold Iran accountable.’

WHITE HOUSE VOWS SUPPORT FOR ISRAEL AMID IRAN ATTACK, BRACES FOR HOURS-LONG ON-SLAUGHT

‘We stand with the people of Israel against this brazen and callous attack,’ Noem wrote in an X post. ‘Iran hates democracy, freedom, and basic human rights — making them an enemy of Israel and the United States.’

‘I expect the Biden Administration to stand up for these shared principles and hold Iran accountable,’ she wrote.

Rep. Brian Mast, R-Fla., wrote that the attacks against Israel were a ‘direct result’ of Biden’s ‘lack of leadership.’

‘Iran just launched drone strikes on innocent Israeli civilians. This is a direct result of Joe Biden’s lack of leadership,’ Mast wrote in an X post. ‘The White House should be standing resolutely with Israel. Instead, they’ve spent months kissing up to the terrorist regime in Tehran to appease a few loud, far-left, and anti-American lawmakers in Congress.’

On Friday, Biden was asked how imminent a potential attack on Israel is from Tehran following an Israeli strike on Iran’s Damascus consulate in Syria.

‘I don’t want to get into secure information, but my expectation [is] sooner than later,’ he replied.

‘We are devoted to the defense of Israel,’ he added. ‘We will support Israel. We will defend, help defend Israel and Iran will not succeed.’

When asked what his message to Tehran was, Biden simply said: ‘Don’t.’ When he was asked to elaborate, he walked away. 

Rep. Steny Hoyer, D-M.D., echoed Biden’s statement Friday, saying that Israel has America’s ‘full support.’

‘Last week, President Biden sent a definitive message to Iran about this pending attack: ‘don’t.’ I reiterate what Defense Secretary Lloyd Austin made clear to Israeli Defense Minister Yoav Gallant just last week – Israel has America’s full support in defending against Iranian aggression,’ Hoyer wrote in a press release. 

‘We stand by our ally as it exercises its absolute right to defend itself,’ he said.

U.S. officials have reaffirmed their country’s ‘ironclad’ support for Israel while calling for a deescalation. 

‘We are devoted to the defense of Israel. We will support Israel. We will help defend Israel, and Iran will not succeed,’ Biden said on Friday. 

The Pentagon and State Department have expressed similar positions.

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Over the previous week, the markets were expected to inch higher; however, at the same time, while it was expected that incremental highs may be formed, it was also expected that a runaway move would not happen. Over the past four trading sessions, the markets traded precisely on these analyzed lines. The Nifty formed a fresh lifetime high of 22775, but at the same time, it came off from those highs as well. The trading range also got narrower as the Nifty oscillated in a 271-point range. Volatility increased slightly; India Vix rose marginally by 1.72% to 11.53. The headline Index Nifty closed flat with a negligible weekly gain of 5.70 points (-0.03%).

The previous week was truncated as Thursday was a trading holiday on account of Eid-ul-Fitr. The coming week is also truncated, with Wednesday being a holiday on account of Ram Navmi. Due to this Banknifty Options has its shortest expiry as they would expire as early as Tuesday. The level of 22775 creates a new intermediate top for the markets; over the coming days, no runaway upmove is expected so long as the Nifty stays below this point. At the same time, the nearest support for the index exists much below the current levels at 20-week MA which is placed at 21827. By and large, the markets are likely to stay in a broad trading range.

The markets may see a soft start to the week on Monday. The levels of 22650 and 22775 are likely to act as potential resistance points. The supports come in at 22400 and 22280 levels.

The weekly RSI is at 69.87; it has crossed under 70 from the overbought zone. When subjected to pattern analysis, RSI continues to show negative divergence against the price. It has also formed a new 14-period low which is bearish. The weekly MACD is bearish and stays below its signal line.

The pattern analysis shows that the Index has continued resisting the upward-rising trendline on the weekly charts. The upward-rising nature of the trendline is allowing the Nifty to form incremental highs; however, it is also providing strong resistance to the index as it tries to move higher. As of now, the Index has been resisting this pattern resistance every week, and this time it faced selling pressure as well. A bearish divergence on the RSI continues to exist; the nearest support for the Index may be found at the 20-week MA which is placed at 21827

All in all, the risk-off setup might continue to persist for some time. Technical rebounds in the markets may be seen; however, it is strongly recommended that such rebounds be utilized to make exits and protect profits at higher levels. All fresh purchases may be kept limited to defensive pockets, and more emphasis must be placed on getting into stocks with stronger relative strength as such stocks tend to offer resilience during corrective times. Overall, while keeping leveraged exposures at modest levels, a cautious outlook is advised for the coming week.

Sector Analysis for the coming week

In our look at Relative Rotation Graphs®, we compared various sectors against CNX500 (NIFTY 500 Index), which represents over 95% of the free float market cap of all the stocks listed.

Relative Rotation Graphs (RRG) show a loss of relative momentum among many sectors that are placed inside the leading quadrant. The Nifty PSU Banks, Pharma, and Commodities are inside the leading quadrant. However, they are seen giving up on their relative momentum against the broader markets. The Metal Index and Auto Index seem relatively better placed inside the leading quadrant.

The Nifty Energy and Infrastructure indices have rolled inside the weakening quadrant. They are likely to start slowing down on their relative outperformance. Besides these groups, the PSE and the Realty indices are also inside the weakening quadrant.

The Nifty IT, Media, and FMCG indices stay inside the weakening quadrant.

The Nifty Financial Services, Services Sector Index, Banknifty, and Consumption Index stay inside the improving quadrant and may offer resilient performance relative to the broader markets.

Important Note: RRG™ charts show the relative strength and momentum of a group of stocks. In the above Chart, they show relative performance against NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals.  

Milan Vaishnav, CMT, MSTA

Consulting Technical Analyst

www.EquityResearch.asia | www.ChartWizard.ae

Investment firms led by the former CEO of the SPAC that merged with Donald Trump’s media company allege that their files were hacked and stolen by a current member of the media company’s board of directors.

In a federal civil lawsuit filed in South Florida last month, the firms accuse board member Eric Swider of plotting a coup in early 2023 to replace Patrick Orlando as CEO of the special purpose acquisition cop, Digital World Acquisition Corp.

As part of that attempted ouster, Swider and others allegedly “stole access” to the firms’ computer systems and then “used the stolen information to attack” Orlando.

It was “an audacious scheme to seize control of and enlarge their holdings,” claims the suit, which was filed by Benessere Investment Group and ARC Global Investments II.

The suit seeks damages and an injunction “prohibiting the use of the stolen information and to stop the Defendants hacking” the firms’ files.

Orlando was fired from Digital World in March 2023 and replaced by Swider.

That blank-check company last month completed a merger to take Trump Media & Technology Group Corp. public, allowing it to trade on the Nasdaq. The company, which owns the Trump-centric social media app Truth Social and trades under the ticker DJT, soared in its stock-market debut but has since erased all of those gains and more.

On Wednesday alone, the share price fell nearly 9%. Since April 1, the stock has lost almost 45% of its value.

The Florida lawsuit is just one in a series of messy and dramatic legal disputes that have come to define Trump Media’s rocky road to an IPO, and its equally turbulent first weeks as a public company.

DWAC in July settled fraud charges with the Securities and Exchange Commission, though the agency found the SPAC had submitted “materially false and misleading” filings.

Trump Media in late March sued its co-founders over alleged mismanagement of the merger, and is seeking to bar them from owning the company’s stock.

Those co-founders have sued Trump Media in Delaware Chancery Court over their stake in the company.

Critics, meanwhile, have labeled the company a meme stock and a “scam.” They point to the company’s reported net loss of $58.2 million on revenue of just $4.1 million in 2023.

Trump Media did not immediately respond to CNBC’s requests for comment on the lawsuit. Emails sent to addresses that belonged to Swider and co-defendant Alexander Cano, DWAC’s former president, did not immediately receive responses.

In an interview with Wired, which first reported the lawsuit earlier Wednesday, Swider denied all of the allegations against him.

“I just think he’s never let go [of] the fact that I replaced him,” Swider told the outlet. “I don’t know why it offends him so bad.”

The Florida lawsuit, which was filed shortly before the late-March merger, presents Orlando as successful in his efforts to DWAC into a merger agreement with Trump Media.

It alleges that Swider misled DWAC’s directors and business partners by publishing, “false and misleading representations of what was occurring” at the company.

He also allegedly “offered outsized compensation to the other directors he enlisted to collude with him in exchange for supporting his coup d’état.”

Swider stood to massively increase his compensation through his accession to CEO of DWAC — but he also wanted to take control of ARC II, which owned about 19% of DWAC prior to the merger, according to the lawsuit.

Trump Media in an April 1 regulatory filing reported that ARC II owns 6.9%, or about 9.5 million shares, of the post-merger company.

Information about ARC II was held in an account on an electronic file storage website owned by Benessere, the suit says.

To access the account, which “stores the lifeblood” of both investment firms, Swider allegedly enlisted Cano, Orlando’s former assistant. The firms accuse Swider of promising to make Cano the president of DWAC in exchange for access to the account.

Cano agreed, and Swider “made good on his promise,” while also providing Cano with a convertible note worth 165,000 shares of DWAC’s stock — an award valued at more than $6 million at the time, the suit alleges.

Swider said in the interview with Wired that Orlando voted for Cano’s award, adding that he never hired Cano as his assistant, as the suit alleges.

The lawsuit says that Cano since February 2023 repeatedly accessed the storage account and “immediately” provided the information within it to Swider.

Swider then used it to email “false and defamatory claims” about Orlando to ARC II’s members.

In a March 5 email, included in the lawsuit as “Exhibit A,” Swider accused Orlando of “failure to maintain a fiduciary responsibility” to ARC II, among a litany of other claims.

“Patrick has threatened me with pending litigation for speaking out to fellow membership holders so I want to be clear about this. I am not disparaging Patrick,” Swider wrote in the email.

“I am sure he is an amazing Human being, Honest. hard working. Looking out for your best interest. He is good looking. He is cool. I like him. Nothing in this email is meant to be defamatory. He has been great as a leader. Patrick- you are Awesome!!”

Orlando later discovered the email because Swider “failed to remove Orlando’s wife from the mailing list,” according to the lawsuit.

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Stocks sold off Friday as inflation and geopolitical worries once again dented investor sentiment on Wall Street. A broad decline in major bank shares also weighed on the market.

The Dow Jones Industrial Average slid 475.84 points, or 1.24%, closing at 37,983.24. The S&P 500 tumbled 1.46% at 5,123.41. The Nasdaq Composite pulled back by 1.62% at 16,175.09.

At one point in the trading session, the Dow was down by nearly 582 points, or 1.51%. The S&P 500 slid as much as 1.75%.

Week to date, the broad market index dropped 1.56%, and the 30-stock Dow fell 2.37%. Meanwhile, the tech-heavy Nasdaq is 0.45% lower for the week.

Markets are generally in good shape so far this year. The Dow is up 0.7% year-to-date. The S&P 500 and Nasdaq are up 8% and 9.5% respectively since the beginning of 2024.

JPMorgan Chase shares declined more than 6% after the banking giant posted its first-quarter results. The bank said net interest income, a key measure of what it makes through lending activities, could be a little short of what Wall Street analysts are expecting in 2024. CEO Jamie Dimon also warned about persistent inflationary pressures weighing on the economy. 

Wells Fargo slipped 0.4% after reporting its latest quarterly figures. Citigroup dropped 1.7% despite posting a revenue beat.

Oil prices continued their rise on reports that Israel is preparing for a direct attack by Iran this weekend, in what would be the biggest escalation of tensions in the region since the outbreak of the Israel-Hamas war last October. U.S. crude settled at $85.66 a barrel after rising above $87.

That, coupled with fresh U.S. imports data, added fuel to inflation concerns that have put pressure on the market.

“We’re getting further risk off sentiment heading into the weekend. You’re seeing there’s a flight to safety trade, with the dollar stronger, and we’re seeing equities sell off,” said Rob Haworth, U.S. Bank Wealth Management senior investment strategist.

“That comes on the heels of the inflation data that tells us the economy’s still pretty hot and inflation is sticky; that’s what led [investors] to really adjust their expectations around the Fed. … That’s some of why they’re getting cautious headed into the weekend,” said Haworth.

Consumers are also growing worried about the persistent inflationary pressures. The consumer sentiment index for April came in at 77.9, below the Dow Jones consensus estimate of 79.9, according to the University of Michigan’s Surveys of Consumers. Year-ahead and long-run inflation expectations also ticked up, reflecting frustrations over sticky inflation.

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The price of Trump Media closed trading Friday down nearly 20% for the week.

DJT shares, which dropped by more than 8% within the first hour of trading Friday, eked out a slight gain by the end of the day.

Shares closed up 18 cents at $32.59, an increase of around .5%.

That closing price was more than $38 lower than what its shares first sold for when the social media company began public trading on March 26.

Shares of Trump Media, which owns the Truth Social app, have dropped by 47.4% so far in April wiping out billions of dollars in the company’s market capitalization.

Former President Donald Trump is the biggest shareholder in the company, owning nearly 60% of its stock. Trump on Monday is set to start jury selection for his criminal trial in Manhattan Supreme Court on charges of falsifying business records related to a 2016 hush money payment to porn star Stormy Daniels.

Trump Media on March 26 opened its first day of trading with a price of $70.90 per share, hitting a high of nearly $80 later that same day. During trading that day, the company’s market capitalization topped $9.5 billion.

By Friday’s close, Trump Media’s market cap stood at $4.45 billion — a whopping $5 billion lower than the high it hit more than two weeks ago.

Trump Media began public trading a day after it merged with the shell company Digital World Acquisition Corp., which was created to help a private firm go public.

Trump Media last year had revenue of just $4.1 million, and reported a net loss of $58 million.

That performance and the relatively high price of the company’s stock have drawn keen interest from short sellers, who make trades that are effectively bets that a company’s share price will drop.

As of this week, so-called short interest in DJT was $208.7 million, with 5.44 million shares shorted, according to Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners, a leading financial data marketplace platform.

There were fewer than 100,000 shares of Trump Media available to borrow to sell short. Traders who want to sell stock short must borrow shares to sell, with the expectation that they will later buy back the same number of shares at a lower price to return them to the lender, pocketing the price difference between the trades.

Trump Media has 136.7 million outstanding shares.

A week ago, traders who wanted short Trump Media shares had to pay up to 900% in annual financing costs, meaning they would need a then-$30-per-share drop within a month to break even on their trade, Dusaniwsky said.

Since then, however, financing costs for short trades in Trump Media had sharply fallen, to 200%.

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Boston University’s Macklin Celebrini received another accolade Friday night before he heads off to become the projected No. 1 overall pick in the NHL draft.

Celebrini received the 44th Hobey Baker Memorial Award as the top men’s college hockey player for the 2023-24 season. Boston College’s Cutter Gauthier and North Dakota’s Jackson Blake were the other finalists.

Celebrini, 17, the youngest player in college hockey this season, led the Terriers with 32 goals and 64 points in 38 games. The freshman center helped the school reach the Frozen Four, where it lost to Denver in the semifinals.

‘This is an honor to receive this award and I’m truly humbled and grateful to receive it and I want to congratulate Denver and BC on their wins (Thursday) and wish them the best of luck (Saturday in the championship game),’ Celebrini said at the presentation ceremony.

He is the first Boston University player to win the award since current Vegas Golden Knights player Jack Eichel in 2015.

Celebrini already won Hockey East Player of the Year and was named the NCAA’s top rookie on Friday.

He has been considered the top prospect in the 2024 NHL draft for years and was listed by NHL Central Scouting as its top midseason North American prospect. He was Canada’s top scorer at the world junior championships.

The San Jose Sharks hold the best draft lottery odds to select him.

Wisconsin senior Kyle McClellan won the Mike Richter Award as top goaltender. He had an NCAA-leading seven shutouts and .931 save percentage and was second with a 1.94 goals-against average.

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