NIFTY ACHIEVES 16644; TRAIL STOP-LOSS TO 16200

 

NIFTY ACHIEVES 16644; TRAIL STOP-LOSS TO 16200

 

WORLD MARKETS

 

US markets were shut yesterday due to the Memorial Day holiday. US futures are up 0.3%-1.1% this morning.

 

European markets gained 0.2%-0.8%. Overall market sentiment was boosted by announcement of relaxation of Covid controls in the major Chinese cities of Beijing and Shanghai from Wednesday.

 

Dollar index fell 0.3% 101.37. Gold inched up 0.2% to $1856 per ounce.

 

Oil rose to two-month high ahead of EU meeting on Russia sanctions. Brent crude rose 2.1% to $121.67 per barrel and WTI jumped 2.2% to $117.64.

 

European markets gained 0.2%-0.8%. Overall market sentiment was boosted by announcement of relaxation of Covid controls in the major Chinese cities of Beijing and Shanghai from Wednesday.

 

German May CPI came in at an annual 8.7%, up from 7.8% in April and ahead of the 8.0% expectation. Euro zone economic sentiment for May inched to 105.0 from 104.9 in April.

 

AT HOME

 

Benchmark indices soared 1.9% each, extending the winning streak to third consecutive day. Sensex settled at 55925, up 1041 points while Nifty added 308 points to finish at 16661. Nifty mid-cap and small-cap indices climbed 2.4% and 3.1% respectively. All the BSE sectoral indices ended in green, with Consumer Durables and Realty indices leading the tally, up 4.4% and 4% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 502 cr, 1806 cr and 1460 cr respectively. DIIs were net buyers to the tune of Rs 1524 cr.

 

Rupee appreciated 3 paise to end at 77.54/$.

 

OUTLOOK

 

Today morning, Asian markets are trading flat to modestly lower and SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 16644, the 38.2% retracement level of the entire 18115-15735 fall, is the next upside level to eye; 16170 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty surged all the way to 16695 before closing at 16661.

 

16925, the 50% retracement level of the entire 18115-15735 fall, is the the next upside target; 16200 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 36084, the top made yesterday, which roughly coincided with the upper band of daily bollinger band, is the immediate hurdle, upon crossover of which 36566, the 61.8% retracement level of the entire 38765-33002 fall, is be the next level to eye; 34800 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.