19100-19150 IS THE NEXT TARGET AREA; 18800 IS IMMEDIATE SUPPORT

 

19100-19150 IS THE NEXT TARGET AREA; 18800 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

On Wednesday, Nasdaq rose 0.3%, S & P 500 ended little changed while Dow fell 0.2%. Fed Chair Powell, speaking at the ECB Forum on Central Banking said more restrictive policy is still to come as the Fed continues to fight inflation, including the likelihood of interest rate hikes at consecutive meetings.

 

Yesterday, Dow and S & P 500 gained 0.8% and 0.4% respectively while Nasdaq ended flat as banks rose after passing the Federal Reserve’s annual stress test.

 

At the European Central Bank forum in Sintra, Portugal, ECB President Christine Lagarde, Bank of England Governor Andrew Bailey and Federal Reserve Chairman Jerome Powell vowed to push on despite growth risks.

 

Weekly initial jobless claims decreased 26,000 to a seasonally adjusted 239,000, the largest drop in 20 months and below the expectation of 265,000. The Commerce Department revised its estimate of first-quarter GDP to 2%, up from the 1.3% reported in May and above the 1.4% previous estimate.

 

U.S. 10-year treasury yield jumped 13 bps to 3.842%. Dollar index rose 0.4% to 103.35. Gold was flat at $1907 per ounce.

 

Brent crude futures rose 0.4% to $74.34 a barrel and WTI crude futures rose 0.4% to $69.86 a barrel.

 

In Europe, FTSE fell 0.4%, DAX was flat while CAC rose 0.4%. German inflation rose more than expected in June, while inflation in Spain and Italy eased.

 

 

AT HOME

 

Benchmark indices climbed 0.8% each and hit fresh record highs. Sensex, after hitting a high of 64050, settled at 63915, up 499 points. Nifty surged to 19011 before closing at 18972, gaining 155 points. Nifty mid-cap and small-cap indices rose 0.6% and 0.4% respectively. Except 0.7% lower Media index, all the NSE sectoral indices ended higher, with Pharma and Metal indices on the top, up 1.5% and 1.4% respectively.

 

FIIs net bought stocks worth Rs 12350 cr but net sold index futures and stock futures worth Rs 848 cr and 1666 cr respectively. DIIs were net sellers to the tune of Rs 1021 cr.

 

Rupee depreciated 3 paise to end at 82.06/$.

 

OUTLOOK

 

China's June manufacturing PMI has come in at 49, matching estimate.

 

Today morning, Shanghai and Hang Seng are modestly higher while Nikkei is off 0.6%. SGX Nifty is suggesting more than 100 points higher start for our market.

 

In Wednesday's report we had said that 18887 continued to be immediate hurdle, upon crossover of which, 19050, around which an upward sloping trendline adjoining tops made in October 2021 and December 2022 is placed, would be the next target to eye.

 

Nifty crossed 18887 and surged all the way to 19011 before closing at 18972. The benchmark is set to open above 19050 today.

 

19100-19150 is the next target area for Nifty; 18800 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 44800 is the next target, above which, 45500-45600 would be next major target area; 43900 is immediate support.

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