18887 ABOVE 18777; STAY LONG WITH THE STOP-LOSS OF 18555

 

18887 ABOVE 18777; STAY LONG WITH THE STOP-LOSS OF 18555

 

WORLD MARKETS

 

U.S. indices gained 0.4%-0.8% after smallest annual increase in inflation in more than two years bolstered hopes that the Fed will not raise interest rates..

 

CPI rose 4.0%, the smallest year-on-year increase since March 2021, after rising 4.9% in April. Over the previous month, CPI rose 0.1% after increasing 0.4% in April. Core CPI, which strips out volatile food and energy prices, was hotter with 5.3% annual increase and 0.4% monthly change.

 

U.S. 10-year treasury yield rose 8 bps to 3.819%. Dollar index fell 0.3% to 103.31. Gold fell 0.7% to $1943 per ounce.

 

China’s central bank lowered a short-term lending rate for the first time in 10 months.

 

Brent crude futures climbed 3% to $74.06 a barrel and WTI crude was up 3.1% at $69.19 a barrel.

 

European markets rose 0.3%-0.8%.

 

AT HOME

 

Sensex and Nifty gained 0.7% and 0.6% respectively, building on yesterday's modest gains. Sensex settled at 63143, up 418 points while Nifty added 115 points to finish at 18716. Nifty mid-cap and small-cap indices climbed 1.2% and 0.7% respectively with the former hitting fresh record high and later scaling highest level after 22nd April 2022. Except 0.1% lower Auto index, all the NSE sectoral indices ended higher, with Realty index on the top, up 3%, followed by 1.8% higher Media index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1678 cr, 615 cr and 786 cr respectively. DIIs were net sellers to the tune of Rs 203 cr.

           

Rupee appreciated 5 paise to end at 82.38/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.3%-1% and SGX Nifty is suggesting around 50 points higher 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 while 18531, the low made last week, continued to be immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty soared to touch a high of 18728 before closing at 18716. The benchmark is set to open above 18750 today.

 

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

 

For Banknifty, 43706, the low made last week, around which 34-DMA is also placed, is the important immediate support; 44500 is the immediate hurdle, upon crossover of which, 45000-45200 would be next upside target area.

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