16172 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 15785

 

16172 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 15785

 

WORLD MARKETS

 

US indices gained 0.2%-0.4%, with the S&P 500 and Nasdaq Composite rising for the third consecutive day.

 

Minutes of the latest Fed meeting showed that the central bank was committed to bringing down inflation and that Fed members judged that an increase of 50 or 75 basis points would likely be appropriate at the next meeting.

 

ISM services PMI came in better than expected, though the report did show a slight slowdown in growth. Job openings also came in higher than expected, at more than 11 million. However, mortgage demand fell week over week even as rates declined.

 

US 10-year treasury yield rose nearly 12 bps to 2.934%. Dollar index rose half a percent to 107 Gold plunged 1.5% to $1738 per ounce, hitting lowest level after September 2021.

 

Brent crude tumbled 4.8% to $99.76 per ounce and WTI slipped 2.8% to $98.11, both hitting their lowest level in nearly 3-months.

 

European markets rose 1.2%-2%.

 

AT HOME

 

Benchmark indices climbed 1.1% each to close at the highest level after 10th June, 2022. Sensex settled at 53750, up 616 points while Nifty added 179 points to finish at 15990. Nifty mid-cap and small-cap indices gained 1.9% and 0.5% respectively. Except quarter of a percent lower Energy and Metal indices, all the BSE sectoral indices ended higher, with Auto and Consumer Discretionary Goods & Services indices on the top, up 2.7% and 2.5% respectively.

 

FIIs net sold stocks worth Rs 330 cr but net bought index futures and stock futures worth Rs 1738 cr and 1497 cr respectively. DIIs were net buyers to the tune of Rs 1464 cr.

 

Rupee appreciated 7 paise to end at 79.30/$.

 

OUTLOOK

 

Today morning, Nikkei is up half a percent, Shanghai is little changed while Hang Seng is down 0.9%. SGX Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that 16025, the top made Tuesday, which coincided with 34-DMA, was the important immediate hurdle while immediate support on the hourly chart has moved up to 15600, with the stop-loss of which, existing longs can be held on to.

 

Nifty rose to touch a high of 16011 before closing at 15990. The benchmark is set to open near 16050 today.

 

16172, the upper end of the gap created by gap-down opening on 13th June, is the next target; 15785, the low made Tuesday, would now act as immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 34650, followed by 35270, the 61.8% and 78.6% retracement levels of the recent leg of fall, are the upside levels to eye; 33757, the low made on Tuesday, is the immediate support.