18400 CONTINUES TO BE IMMEDIATE SUPPORT; 18887 ABOVE 18662

 

18400 CONTINUES TO BE IMMEDIATE SUPPORT; 18887 ABOVE 18662

 

WORLD MARKETS

 

U.S. indices gained 0.5%-1.3% with S & P 500 and Nasdaq closing at the highest level since August 2022, after the U.S. House passed a debt ceiling bill in a crucial step to avoid a default.

 

Data from ADP showed private payrolls grew more than expected in May, while the number of jobless claims filed last week was smaller than forecasted. ISM manufacturing PMI fell to 46.9 last month from 47.1 in April, contracting for a seventh straight month.

 

U.S. 10-year treasury yield fell 5 bps to 3.599%, falling for the fifth consecutive session. Dollar index fell 0.6% to 103.56. Gold rose 0.7% to $1977 per ounce.

 

WTI crude rose 3% to settle at $70.10 a barrel and Brent rose 2.3% to $74.65 a barrel.

 

European markets rose 0.6%-2%. Flash Eurozone CPI rose 6.1% y-o-y, which was less than the 6.3% anticipated and vs 7% in April.

 

AT HOME

 

Sensex and Nifty fell 0.3% and 0.25% respectively, extending losing streak to second straight day. Sensex settled at 62428, down 193 points while Nifty lost 46 points to finish at 18487. Nifty mid-cap and small-cap indices however outperformed yet again, rising 0.2% and 1% respectively and extending the winning streak to ninth consecutive session. Nifty Realty and Pharma indices surged 1.1% each, becoming top gainers among the sectoral indices while Nifty Bank and Financial Services indices were the top losers, down 0.8% and 0.6% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 71 cr, 2183 cr and 446 cr respectively. DIIs were net buyers to the tune of Rs 489 cr.

 

Rupee appreciated 31 paise to end at 82.41/$.

 

OUTLOOK

 

Today morning, Hang Seng is up 2.3% while Nikkei and Shanghai are up 0.6% and 0.3% respectively. SGX Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that 18400 continued to be immediate support on the hourly chart while 18887, the record high made in December 2022, continued to be next major target.

 

Nifty fell to 18464 before closing at 18487. The benchmark is set to open near 18550 today.

 

18662, the top made on Tuesday, is the immediate hurdle, upon crossover of which, 18887, the record high made in December 2022, would be next major target; 18400 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43390, the low made last week, is the next support; 44200 is immediate hurdle.

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