16750-16800 IS THE RESISTANCE ZONE; 16438 SUPPORT

 

16750-16800 IS THE RESISTANCE ZONE; 16438 SUPPORT

 

WORLD MARKETS

 

US indices soared 1.4%-4.1% after Fed announced its much anticipated 0.75% rate increase to fight inflation, but hinted that it could slow the pace of its hiking campaign at some point.

 

“As the stance of monetary policy tightens further, it likely will become appropriate to slow the pace of increases while we assess how our cumulative policy adjustments are affecting the economy and inflation,” he said. Markets were also encouraged after Powell noted that he doesn’t believe the economy is currently in a recession.

 

Alphabet shares rose 7.7% after quarterly report showed strong revenue from Google’s search business. Microsoft gained 6.7% after reporting a 40% jump in revenue growth for Azure and cloud services.

 

US 10-year treasury yield fell 3 bps to 2.778%. Dollar index fell 0.7% to 106.46. Spot gold rose 1% to $1734 per ounce.

 

Brent crude settled 2.1% higher at $106.62 and WTI crude ended the day 2.4% higher at $97.26 per barrel.

 

European markets rose 0.5%-1.5%.

 

AT HOME

 

Benchmark indices surged 1% each, snapping 2-day losing streak. Sensex settled at 55816, up 547 points while Nifty added 158 points to finish at 16641. Nifty mid-cap index rose 1.1% while small-cap index ended absolutely flat. Except 0.8% lower Telecom index, all the BSE sectoral indices ended higher, with Healthcare and Capital Goods indices on the top, up 1.7% each.

 

FIIs net sold stocks worth Rs 437 cr but net bought index futures and stock futures worth Rs 1643 cr and 1130 cr respectively. DIIs were net buyers to the tune of Rs 712 cr.

 

Rupee depreciated 12 paise to end at 79.90/$.

 

OUTLOOK

 

Today morning, Shanghai is marginally higher while Nikkei and Hang Seng are marginally in the red. SGX Nifty is suggesting around 90 points higher start for our market.

 

In yesterday's report we had said that 16450-16460 continued to be immediate support zone, while 16750-16800 was the resistance zone.

 

Nifty, after touching a low of 16438, rebounded to end at 16641 and is set to open above 16700 today.

 

16750-16800 is the immediate resistance zone above which, 200-DMA, placed around 17035, would be next target; 16438, the low made yesterday, is the immediate support.

 

For Banknifty, upon crossover of 37000, 37700, around which a trendline adjoining tops made February and April is placed, would be the next upside level to eye; 36000 continues to be immediate support.

 

Dr Reddy, TVS Motors, Nestle and Vedanta will report their quarterly earnings today.