18660-18887 CONTINUES TO BE IMMEDIATE RANGE

 

18660-18887 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow ended marginally in the red while S & P 500 and Nasdaq rose 0.4% and 1% respectively, snapping a 3-day losing streak.

 

Fed Chair Powell, during the second day of testimony, said the central bank would move interest rates at a “careful pace” from here and that two more rate hikes of 25 basis points each by the end of the year was “a pretty good guess.”

 

U.S. weekly jobless claims, at 264000, held steady at a 20-month high last week. Expected figure was 256000.

 

Bank of England (BoE), the Swiss National Bank (SNB) and Norges Bank all hiked their benchmark interest rates. BoE voted 7-2 to raise its main interest rate to 5% from 4.5%, its highest since 2008 and its largest rate increase since February. Swiss National Bank (SNB) hiked its benchmark interest rate by 25 basis points to 1.75%. Norges Bank raised its benchmark interest rate by 50 bps to a 15-year high.

 

U.S. 10-year treasury yield rose 8 bps to 3.799%. Dollar index rose 0.3% to 102.4. Gold fell 1% to $1913 per ounce.

 

Brent futures plunged 3.9% to $74.14 a barrel and WTI crude futures tumbled 4.2% to $69.51.

 

In Europe, FTSE and CAC dipped 0.8% each while DAX eased 0.2%.

 

AT HOME

 

Benchmark indices fell half a percent, snapping a 2-day winning streak. Sensex settled at 63238, down 284 points while Nifty lost 85 points to finish at 18771. Nifty mid-cap and small-cap indices tumbled 1.1% and 0.8% respectively, snapping 8-session winning streak and mid-cap index suffering biggest cut since 24th March, 2023. Except marginally higher Media and Metal indices, all the NSE sectoral indices ended lower, with PSU Bank index being the top loser, down 1.7%, followed by 0.8% lower Realty and Oil & Gas indices.

 

FIIs net sold stocks and stock futures worth Rs 693 cr and 2517 cr respectively but net bought index futures worth Rs 325 cr. DIIs were net buyers to the tune of Rs 219 cr.

 

Rupee appreciated 9 paise to end at 81.95/$.

 

OUTLOOK

 

Japan’s core inflation rate in May eased slightly to 3.2% year-on-year, lower than April’s 3.4% but still above the BOJ’s 2% target.

 

Chinese markets are closed today for a public holiday. Nikkei and Hang Seng are down 1.3% and 1.8% respectively. SGX Nifty is suggesting aroun 25 points lower start for our market.

 

In yesterday's report we had said that 18887, the high made in December 2022, continued to be immediate hurdle while 18660, the low made Tuesday, continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 18886, slipped to end at 18771.

 

18887, the high made in December 2022, continued to be immediate hurdle; 18660, the low made Tuesday, continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

For Banknifty, 44500 continues to be important immediate hurdle, a crossover of which is required for a fresh upmove; 43400-43350 is the immediate support area, below which, 42800-42600 would be next support area.

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