17870-17970 CONTINUES TO BE THE RESISTANCE ZONE; 17650-17600 CONTINUES TO BE SUPPORT AREA

 

17870-17970 CONTINUES TO BE THE RESISTANCE ZONE; 17650-17600 CONTINUES TO BE SUPPORT AREA

 

WORLD MARKETS

 

US indices fell 0.6%-1.7% amid corporate profit worries.

 

Chipotle fell 5% while Lumen Technologies nosedived 21% after disappointing results.

 

US 10-year treasury yield fell 6 bps to 3.613%. Dollar index inched up 0.1% to 103.47. Gold inched up 0.2% to $1875 per ounce.

 

Oil gained for the third consecutive day with Brent up 1.7% at $85.09 a barrel and WTI up 1.7% to $78.47 a barrel.

 

In Europe, FTSE and DAX rose 0.3% and 0.6% respectively while CAC fell 0.2%.

 

AT HOME

 

Sensex and Nifty rose 0.6% and 0.8% respectively to close at the highest level in two weeks. Sensex settled at 60663, up 377 points while Nifty added 150 points to finish at 17871. Nifty mid-cap and small-cap indices gained 0.9% and 0.8% respectively. All the NSE sectoral indices ended higher, with Metal index being the top gainer, up 3.8%, followed by 1.5% higher IT index.

 

FIIs net sold stocks worth Rs 737 cr but net bought index futures and stock futures worth Rs 1266 cr and 1924 cr respectively. DIIs were net buyers to the tune of Rs 941 cr.

 

Rupee appreciated 21 paise to end at 82.49/$.

 

RBI's Monetary Policy Committee voted 4-2 in favour of 25 bps repo rate hike, taking the rate to 6.50%. The "withdrawal of accommodation to ensure that inflation remains within the target going forward, while support growth" was maintained. RBI estimated FY23-24 GDP growth to be at 6.4% while raised FY23 number to 7% from 6.8%. Retail inflation forecast for FY23 was lowered to 6.5% from 6.7% while pegging it as 5.3% for next fiscal.

 

OUTLOOK

 

Today morning, Shanghai and Hang Seng are up 0.6% and 0.4% respectively while Nikkei is down half a percent. SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that 17650-17600 continued to be immediate support zone on the hourly chart while 17870-17970 continued to be immediate resistance zone.

 

Nifty rose to touch a high of 17898 before closing at 17871.

 

17870-17970 continues to be immediate resistance zone for Nifty, upon crossover of which, 18201, the top made last week, would be next upside target; 17650-17600 continues to be immediate support zone on the hourly chart.

 

For Banknifty, 42015, the top made on Budget day, continues to be upside level to eye; On the way down, 40700-40600 is the immediate support area, below which, 39420, the low made last week, would be bigger support to eye.