15450 BELOW 15659; 16200-16250 IS THE RESISTANCE ZONE

 

15450 BELOW 15659; 16200-16250 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

US indices climbed 1%-2.5%, with the Dow and S&P 500 both snapping five-day losing streaks, after the Federal Reserve announced a 75 basis point rate hike, which had been widely anticipated by the market.

 

This is the largest interest rate hike since 1994. The Fed also indicated it sees the federal funds rate ending the year above 3%. Additionally, the central bank downgraded its GDP outlook for 2022, 2023 and 2024. The Fed sees the economy growing by less than 2% during each of those years.

 

US 10-year treasury yield dropped by 18 basis points to 3.301%. Dollar index fell 0.6% to 104.85. Spot gold rose 1.4% to $1832 per ounce.

 

Brent crude August futures settled down $2.7, or 2.2%, at $118.51 a barrel and WTI crude for July fell $3.62, or 3.04%, to $115.31 a barrel.

 

European markets rose 1.2%-2.9%. ECB announced plans to create a new tool to tackle the risk of fragmentation across the common currency bloc in order to assuage fears of a fresh debt crisis.

 

China’s retail sales in May fell 6.7% y-o-y, better than the expected 7.1% fall expected. China’s industrial output climbed 0.7% y-o-y in May, rising from the April’s 2.9% decline and above expectations of a 0.7% drop.

 

AT HOME

 

Benchmark indices ended lower by nearly three tenth of a percent after a rangebound session, extending the losing streak to fourth straight session. Sensex settled at 52541, down 152 points while Nifty lost 40 points to finish at 15692. Nifty mid-cap and small-cap indices however gained 0.4% and 0.6% respectively, snapping 3-day losing streak. BSE Power index fell 0.9%, becoming top loser among the sectoral indices, followed by 0.8% lower Oil & Gas, Utilities and Energy indices. Auto index was the top gainer, up 0.9%, followed by 0.6% higher Industrials, Capital Goods and Consumer Discretionary Goods & Services indices.

 

FIIs net sold stocks and stock futures worth Rs 3531 cr and 630 cr respectively but net bought index futures worth Rs 12 cr. DIIs were net buyers to the tune of Rs 2588 cr.

 

Rupee depreciated 8 paise to end at 78.07/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 1.8% and 0.3% respectively while Hang Seng is marginally in the red. SGX Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that 15659, the low made Tuesday, was the immediate support while 16200-16250 was the immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.

 

Nifty touched a low of 15678 before closing at 15692 and is set to open near 15750 today.

 

15659, the low made Tuesday, continues to be immediate support, upon breach of which, 15450 would be next downside level to eye; 16200-16250 is the immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.

 

33000, the low made in May, is the immediate support for Banknifty, below which, 32155, the low made in March, would be the next downside level to eye; 34500 is immediate hurdle.