17992 NEXT; TRAIL STOP-LOSS TO 17484

 

17992 NEXT; TRAIL STOP-LOSS TO 17484

 

WORLD MARKETS

 

US indices ended higher by 0.6%-0.7% after moving between gains and losses as markets weighed Fed Chair Powell’s comments on the central bank continuing to fight inflation.

 

During a Q&A session at the Cato Institute, Powell reiterated that the central bank will do what it takes to fight inflation. He also signaled that a pause in rate hikes or a pivot to cutting interest rates is not coming soon.

 

Data showed the number of Americans filing new claims for unemployment benefits fell last week to a three-month low.

 

US 10-year treasury yield rose nearly 5 bps to 3.311%. Dollar index eased 0.1% to 109.66. Spot gold fell 0.64% to $1,706.67 per ounce.

 

Brent futures rose $1.15, or 1.3%, to settle at $89.15 a barrel, while WTI crude rose $1.60, or 2.0%, to $83.54.

 

In Europe, FTSE and CAC gained a third of a percent each while DAX eased 0.1%. The European Central Bank announced a 75 bps interest rate rise, taking its benchmark deposit rate to 0.75%.

 

AT HOME

 

Sensex and Nifty surged 1.1% and 1% respectively to close at the highest level after 18th August. Sensex settled at 59688, up 659 points while Nifty added 174 points to finish at 17798. Nifty mid-cap and small-cap indices gained 0.2% and 1% respectively. BSE Bankex and Finance indices climbed 1.9% and 1.5% respectively, becoming top gainers among the sectoral indices while Metal index was the top loser, down 1.2%, followed by 0.5% lower Consumer Durables index.

 

FIIs net bought stocks and index futures worth Rs 2913 cr and 853 cr respectively while net sold stock futures worth Rs 1719 cr. DIIs were net sellers to the tune of Rs 213 cr.

 

Rupee appreciated 19 paise to end at 79.71/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-1.6% and SGX Nifty is suggesting around 75 points higher start for our market.

 

In yesterday's report we had said that 17777, the top made last week, continued to be immediate hurdle, above which, 17992, the top made in August, would be next upside level to eye.

 

Nifty surged to touch a high of 17807 before closing at 17798. The benchmark is set to open above 17850 today.

 

17992, the top made in August, is the next upside level to eye; 17484, the low made Tuesday, would now act as immediate support, with the stop-loss of which, trading longs can be held on to.

 

40900 followed by 41800 are upside levels for Banknifty; 39700-39550 is the support area.