18887 ABOVE 18777; 18555 CONTINUES TO BE IMMEDIATE SUPPORT

 

18887 ABOVE 18777; 18555 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow fell 0.7% but S & P 500 and Nasdaq rose 0.1% and 0.4% respectively after the Federal Reserve held interest rates steady but signaled another 50 basis points hike by end-December.

 

Fed left borrowing rate unchanged in a target range of 5%-5.25% but forecast it will raise interest rates as high as 5.6% before 2023 is over.

 

U.S. producer prices fell more than expected in May.

 

U.S. 10-year treasury yield fell 3 bps to 3.792%. Dollar index fell 0.3% to 103. Gold was flat at $1943 per ounce.

 

Brent crude futures fell 1.5% to $73.20 a barrel and WTI crude closed 1.7%, lower at $68.27.

 

European markets gained 0.1%-1.1%. U.K. economy grew by 0.2% in April, in line with expectations.

 

AT HOME

 

Sensex and Nifty inched up 0.1% and 0.2% respectively, extending the winning streak to third consecutive day. Sensex settled at 63228, up 85 points while Nifty added 40 points to finish at 18755. Nifty mid-cap and small-cap indices gained 0.2% and 0.1% respectively. Nifty Metal and Oil & Gas indices were the top gainers among the sectoral indices, up 1.4% and 0.9% respectively whereas Financial Services and Bank indices were the top losers, down 0.3% and 0.2% respectively.

 

FIIs net bought stocks and index futures worth Rs 1715 cr and 758 cr respectively but net sold stock futures worth Rs 608 cr. DIIs were net sellers to the tune of Rs 655 cr.

 

Rupee appreciated 27 paise to end at 82.10/$.

 

India’s Wholesale Price Index declined 3.48% y-o-y in May compared to a fall of 0.92% in April. This is the lowest reading since November 2015. Core WPI stood at negative 2.10% vs negative 1.80% in April.

 

OUTLOOK

 

Today morning, Hang Seng is up more than a percent while Shanghai and Nikkei are up 0.3% and 0.1% respectively. SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that 18777, the top made last week, was the immediate upside level to eye, above which, 18887, the record high made in December 2022, would be next target.

 

Nifty rose to touch a high of 18769 before closing at 18755.

 

18777, the top made last week, continues to be immediate upside level to eye, above which, 18887, the record high made in December 2022, would be next target; 18555, the low made last Friday, is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43706, the low made last week, continues to be important immediate support; 44500 is the immediate hurdle, upon crossover of which, 45000-45200 would be next upside target area.

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