17700 IS THE NEXT UPSIDE TARGET; 17250 IMMEDIATE SUPPORT

 

17700 IS THE NEXT UPSIDE TARGET; 17250 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices gained 0.1%-0.6% to post a third straight day of gains on expectation that the omicron variant’s economic impacts won’t be as severe as initially thought.

 

Pfizer and BioNTech said that a booster dose of their vaccine provides a high level of protection against the new omicron variant.

 

US 10-year treasury yield rose 4.8 basis points to 1.528%. Dollar index fell 0.404% to 95.879. Spot gold was nearly flat at $1,784.01 per ounce.

 

Brent crude futures advanced 38 cents, or 0.5%, to settle at $75.83 per barrel and WTI crude settled 31 cents, or 0.43%, higher at $72.36 per barrel.

 

In Europe, FTSE was little changed while DAX and CAC fell 0.8% and 0.7% respectively.

 

AT HOME

 

Sensex and Nifty soared 1.8% and 1.7% respectively, posting their biggest gain after 21st May. Sensex settled at 58650, up 1016 points while Nifty added 293 points to finish at 17470. Nifty mid-cap and small-cap indices rose 1.6% and 1.8% respectively. All the BSE sectoral indices ended higher once again, with Auto index being the top gainer, up 2.2%, followed by 2% each higher IT, Teck and Telecom indices.

 

FIIs net sold stocks worth Rs 579 cr but net bought index futures and stock futures worth Rs 594 cr and 66 cr respectively. DIIs were net buyers to the tune of Rs 1736 cr.

 

Rupee depreciated 1 paise to end at 75.45/$.

 

Monetary Policy Committee unanimously kept repo rate unchanged and maintained its stance as "Accomodative" with 5-1 majority. RBI retained its FY22 real GDP forecast at 9.5% and FY22 CPI projection at 5.3%.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 1% and 0.1% respectively while Nikkei is marginally in the red. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 17325, followed by 17490, are the upside levels to eye.

 

Nifty surged to 17484 before closing at 17470.

 

34-DMA, placed around 17700, is the next upside level to eye.

 

17250 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

37900, 38240 are the next upside levels to eye for Banknifty; 36500 is immediate support.