16140 BELOW 16243; 16515 IS IMMEDIATE HURDLE

 

16140 BELOW 16243; 16515 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices nosedived 1.9%-2.8%, with most of the losses coming in final hour of trading, as nervousness set in ahead of the May consumer price index report due Friday.

 

U.S. initial jobless claims came in at 229,000, higher than expected.

 

US 10-year Treasury yield ticked up 2 bps to 3.047%. The dollar index rose 0.73% to 103.29. Spot gold was down 0.32% at $1,847.28 per ounce.

 

Brent crude futures for August dipped 33 cents or 0.2% to $123.25 a barrel, while WTI for July was at $121.63 a barrel, down 48 cents, or 0.3%.

 

The ECB confirmed its plan to hike interest rates in July, the first after 2011, and possibly again in September. It also raised inflation projection for 2022 to 6.8%, up from 5.1% previously, and lowered growth outlook.

 

European markets fell 1.4%-1.9%.

 

Data earlier showed China’s May exports jumped 16.9% y-o-y as easing Covid curbs allowed some factories to restart, the fastest growth since January this year and more than double expectations.

 

US May CPI is expected to rise 8.3% y-o-y. Core index, which excludes food and energy prices, may rise 5.9%.

 

AT HOME

 

After dipping seven tenth of a percent in the initial trade, benchmark indices reversed the losses through the session to end higher by three fourth of a percent, snapping a 4-day losing streak. Sensex settled at 55320, up 427 points while Nifty added 121 points to finish at 16478. Nifty mid-cap and small-cap indices gained 0.5% and 0.2% respectively, also snapping 4-day down streak. Except 1.7% and 0.8% lower Metal and Basic Materials indices, all the BSE sectoral indices ended in green, with Telecom and Energy indices on the top, up 2.1% and 2% respectively.

 

FIIs net sold stocks and index futures worth Rs 1513 cr and 872 cr respectively but net bought stock futures worth Rs 952 cr. DIIs were net buyers to the tune of Rs 1625 cr.

 

Rupee depreciated 4 paise to end at 77.77/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-1.4% and SGX Nifty is suggesting around 230 points lower start for our market.

 

In yesterday's report we had said that 20-DMA, placed around 16250, continued to be immediate support while 16610, the top made Monday, continued to be immediate hurdle.

 

Nifty, after touching a low of 16243, reversed to end at 16478. The benchmark is set to open near yesterday's low today.

 

16243, the low made yesterday, which roughly coincided with 20-DMA, is the immediate support to eye, upon breach of which, 16140 and 15960, the 61.8% and 78.6% retracement levels of the recent 15735-16794 upmove, would be the next downside levels to eye; 16515, the top made Wednesday, is the immediate hurdle.

 

For Banknifty, 34659, the low made yesterday, which also coincided with 20-DMA, is the immediate support to eye, below which 34100-34200 would be the next support zone; 35450, the top made Wednesday, is the immediate hurdle.