Tuesday, May 24, 2022

16003 IS IMMEDIATE SUPPORT; 16414 IMMEDIATE HURDLE

 

16003 IS IMMEDIATE SUPPORT; 16414 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices climbed 1.6%-2%, staging a rebound from last week’s steep sell-off, which saw the Dow hit its first eight-week losing streak since 1923, and the S&P 500 briefly fall into bear market territory on an intraday basis.

 

US 10-year treasury yield rose 7 bps to 2.855%. Dollar index tumbled 0.9% to 102. Gold rose 0.4% to $1853 per ounce.

 

WTI crude was little changed at $110.29 a barrel while Brent crude futures settled up 87 cents, or 0.7%, at $113.42.

 

European markets gained 1.2%-1.7%.

 

U.S. President Joe Biden, at a press confidence during his trip in Japan as part of his first Asia tour, said he was considering cutting U.S. tariffs on Chinese goods.

 

AT HOME

 

After gaining just under a percent, Sensex and Nifty nosedived in late noon trade to end lower by 0.1% and 0.3% respectively. Sensex settled at 54288, down 37 points while Nifty lost 51 points to finish at 16214. Nifty mid-cap and small-cap indices slipped 0.4% and 0.8% respectively. BSE Metal index collapsed 8.3%, becoming top loser among the sectoral indices, followed by 4.1% lower Basic Materials index. Auto and Capital Goods indices were the top gainers, up 1.9% and 0.9% respectively.

 

FIIs net sold stocks and index futures worth Rs 1951 cr and 42 cr respectively but net bought stock futures worth Rs 400 cr. DIIs were net buyers to the tune of Rs 1445 cr.

 

Rupee appreciated 3 paise to end at 77.52/$.

 

Steel stocks tumbled while Auto stocks gained following government decision on Saturday to impose 15% export duty on hot-rolled and cold-rolled steel products.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are little changed while Nikkei is down 0.3%. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 16400, the top made last week, was the next upside level to eye while 16003, the low made Friday, was the immediate support.

 

Nifty, after touching a high of 16414, reversed and plunged all the way to 16185 before closing at 16214.

 

16003, the low made Friday, is the immediate support, upon breach of which, 15735, the low made on 12th May, would be the crucial support; 16414, the top made yesterday, which is now very close to 20-DMA, is the immediate hurdle,  upon crossover of which, 16651, the upper end of the gap created by gap-down opening on 6th May, would be the next upside level to eye.

 

For Banknifty, 34820, the top made yesterday, which coincided with 20-DMA, is the immediate hurdle, upon crossover of which, 35133, the upper end of the gap created by gap-down opening on 6th May, would be the next upside level to eye.

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