15183 BELOW 15382; 15707 IS IMMEDIATE HURDLE

 

15183 BELOW 15382; 15707 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

After rising nearly a percent, US indices slipped in late session to end mildly lower.

 

Federal Reserve Chairman Jerome Powell told Congress the central bank is “strongly committed” to curb inflation which is running at a 40-year high.

 

US 10-year treasury yield fell 12 bps to 3.162%. Dollar index, after a volatile session, ended 0.2% lower at 104.18. Gold rose 0.3% to $1838 per ounce.

 

Brent crude futures fell $2.91, or 2.5%, to settle at $111.74 a barrel and WTI fell $3.33, or 3%, to settle at $106.19 a barrel.

 

European markets fell 0.7%-1.1%. U.K. inflation hit a new 40-year high of 9.1% in May.

 

AT HOME

 

Benchmark indices tumbled 1.4% each, giving away nearly three fourth of the gains made yesterday. Sensex settled at 51822, down 710 points while Nifty lost 225 points to finish at 15413. Nifty mid-cap and small-cap indices fell 1.6% and 1.4% respectively.  All the BSE sectoral indices ended in red, with Metal index leading the losses, down 5%, followed by 2.7% lower Basic Materials index.

 

FIIs net sold stocks and index futures worth Rs 2920 cr and 761 cr respectively but net bought stock futures worth Rs 830 cr. DIIs were net buyers to the tune of Rs 1859 cr.

 

Rupee depreciated 31 paise to end at 78.38/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-0.9% and SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 15707, the top made Tuesday, was the immediate hurdle while 15420-15382, the gap created by Tuesday's gap-up opening, was the immediate support zone.

 

Nifty plunged to 15386 before closing at 15413.

 

15382, the lower end of the gap created by Tuesday's gap-up opening, is the immediate support, upon breach of which, 15183, the bottom made last week, would be the next downside level to eye; 15707, the top made Tuesday, continues to be immediate hurdle.

 

32600, around which a trendline adjoining recent bottoms on the hourly chart is placed, is the immediate support for Banknifty, below which, 32290, the low made last week, would be the next downside level to eye; 33600-33800 is the resistance zone.