16200 BELOW 16370; 16700 CONTINUES TO BE IMMEDIATE HURDLE

 

16200 BELOW 16370; 16700 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.5%-0.8% as hot labor data raised the prospect of bigger rate hikes, while JPMorgan's Jamie Dimon warned of an economic "hurricane."

 

The April JOLTS survey showed job openings came in at 11.4 million, in line with estimate and very close to its record high. March job openings were revised up to 11.855 million from 11.549 million. The ISM manufacturing index rose to 56.1 in May from 55.4, defying views for a decline to 54.5.

 

JPMorgan CEO Jamie Dimon warned that an economic “hurricane” caused by the Federal Reserve and the war in Ukraine is brewing.

 

US 10-year treasury yield rose 6 bps to 2.911%. Dollar index climbed three fourth of a percent to 102.54. Gold rose half a percent to $1846 per ounce.

 

Brent crude settled at $116.29 a barrel, a gain of 0.6%, while WTI crude gained 0.5% to $115.26.

 

European markets fell 0.3%-1.2%. Eurozone manufacturing PMI fell to 54.6 in May from 55.5 in April, its lowest activity growth reading since November 2020. British manufacturing activity grew at its slowest rate since January 2021, falling to 54.6 from 55.8 in April.

 

AT HOME

 

After plunging a percent and quarter from the opening highs, benchmark indices recouped two third of the losses in last half an hour surge to end lower by a third of a percent. Sensex settled at 55381, down 185 points while Nifty lost 61 points to finish at 16522. Nifty mid-cap and small-cap indices ended higher by 0.04% and 0.3% respectively. BSE Power and Utilities indices were the top losers among the sectoral indices, down 1.7% and 1.5% respectively while Capital Goods and Industrials indices were the top gainers, up 0.8% and 0.7% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1930 cr, 1276 cr and 1237 cr respectively. DIIs were net buyers to the tune of Rs 984 cr.

 

Rupee appreciated 12 paise to end at 77.52/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-1.7% with Hang Seng leading the losses. SGX Nifty is suggesting around 80 points lower start for our market.

 

In yesterday's report we had said that 16700, around which Nifty had made double top in previous two sessions, was the immediate hurdle while 16370, the lower end of the gap created by Monday's gap-up opening, was the immediate support.

 

Nifty, after touching a low of 16438 rebounded to close at 16522. The benchmark is set to open near 16450 today.

 

16370, the lower end of the gap created by Monday's gap-up opening, continues to be immediate support, upon breach of which, 16200 would be the next downside level to eye; 16700, around which Nifty has made double top, continues to be immediate hurdle.

 

For Banknifty, 36084, the top made Monday, which roughly coincided with the upper band of daily bollinger band, continues to be immediate hurdle, upon crossover of which 36566, the 61.8% retracement level of the entire 38765-33002 fall, would be the next upside level to eye; 34900-34800 is the immediate support zone.