20-DMA CONTINUES TO BE IMMEDIATE SUPPORT; 18442 ABOVE 18330

 

20-DMA CONTINUES TO BE IMMEDIATE SUPPORT; 18442 ABOVE 18330

 

WORLD MARKETS

 

Dow rose 1.2% while S & P 500 and Nasdaq climbed 1.4% each, on the back of some strong earnings reports and likelihood for an easing in monetary policy from the Fed going forward. S & P 500 closed above key 4000 level for first time since September.

 

Cleveland Fed President Loretta Mester said recent inflation data is promising and that she’d support reduced interest rate hikes going forward.

 

US 10-year treasury yield eased 8 bps to 3.758%. Dollar index fell 0.6% to 107.15. Gold inched up 0.1% to $1740 per ounce.

 

Brent crude rose $1.08, or 1.2%, to $88.53 and WTI crude was up $1.14, or 1.4%, at $81.18.

 

European markets gained 0.3%-1%.

 

AT HOME

 

Benchmark indices rose nearly half a percent each, snapping a 3-day losing streak. Sensex settled at 61418, up 274 points while Nifty added 84 points to finish at 18244. Nifty mid-cap index gained 0.6% while small-cap index ended flat. Except 1.2% lower Realty index, all the NSE sectoral indices ended higher with PSU Bank and Metal indices being the top gainers, up 1.7% and 0.9% respectively.

 

FIIs net sold stocks worth Rs 698 cr but net bought index futures and stock futures worth Rs 1521 cr and 949 cr respectively. DIIs were net buyers to the tune of Rs 636 cr.

 

Rupee appreciated 17 paise to end at 81.67/$.

 

OUTLOOK

 

Nikkei is shut today while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 20-DMA, which had moved up to 18080, continued to be downside support to eye while 18330 was the immediate hurdle on the hourly chart.

 

Nifty, after touching a los of 18137, rebounded to end at 18244.

 

20-DMA, which has now moved up to 18110, continues to be downside support to eye; 18330 continues to be immediate hurdle on the hourly chart, upon crossover of which, 18442, the top made last week, would be next resistance.

 

For Banknifty, 42000 continues to be immediate support; 43000-43200 continues to be target area.