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.