22126 CONTINUES TO BE IMMEDIATE HURDLE; 21700 IS IMMEDIATE SUPPORT

 

22126  CONTINUES TO BE IMMEDIATE HURDLE; 21700 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 0.4%-1% as the rally led by technology chugged along. Dow and S & P 500 hit fresh record highs.

 

Meta Platforms surged another 3% while Nvidia and Microsoft rose about 2% each to fresh record highs.

 

Fed Governor Adriana Kugler said that while inflation is easing the “job is not done yet,” while Minneapolis Fed President Neel Kashkari said he expects only two to three cuts.

 

U.S. 10-year treasury yield rose 2 bps to 4.12%. Dollar index fell 0.1% to 104.05. Gold was little changed at $2035 per ounce.

 

WTI and Brent crude futures rose 0.8% each to $73.86 a barrel and $79.21 a barrel respectively.

 

European markets fell 0.4%-1.2%. Germany's industrial production saw sharper than expected fall.

 

AT HOME

 

After rising nearly half a percent at the open, benchmark indices gave away all the gains through the session to end flat. Sensex settled at 72152, down 34 points while Nifty added 1 point to finish at 21930. Nifty mid-cap and small-cap indices gained 0.7% each, both hitting fresh record highs. Except 1.2% and 0.1% lower IT and Private Bank indices, all the NSE sectoral indices ended higher with PSU Bank and Realty indices being the top gainers, up 2.9% and 1.8% respectively.

 

FIIs net sold stocks, index futures and stock future worth Rs 1691 cr, 1253 cr and 4145 cr respectively. DIIs were net buyers to the tune of Rs 328 cr.

 

Rupee appreciated 9 paise to end at 82.97/$.

 

Tata Consumer's revenue and margin beat estimates but an exceptional loss led to profit miss. Powergrid's profit and margin beat estimates. The company also raised capex guidance to Rs. 10000 cr.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 1.2% and 0.7% respectively while Hang Seng is marginally in the red. GIFT Nifty is suggesting around 50 points higher stance for our market.

 

In yesterday's report we had said that 22126, the top made last week, continued to be immediate hurdle while 21670-21620 was the important immediate support area.

 

Nifty, after touching a high of 22053, slipped to end at 21930.

 

22126, the top made last week, continues to be immediate hurdle, upon crossover of which, 22450-22500 would be next target area; 20 and 34-DMAs are placed around 21700 and 21630 respectively, making 21700-21630 important immediate support area.

 

For Banknifty, 46890, the top made last week, is the immediate hurdle while 45071, the low made last the week, is the next downside level to eye.

 

Apollo Hospitals and Grasim will report their quarterly earnings today.

 

RBI's Monetary Policy Committee is widely expected to leave interest rate and stance unchanged when it announces it's decision today.

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