18604 CONTINUES TO BE UPSIDE TARGET; 18300 IMMEDIATE SUPPORT

 

18604 CONTINUES TO BE UPSIDE TARGET; 18300 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow rose 0.4%, S & P 500 was little changed while Nasdaq fell half a percent on Friday.

 

US 10-year treasury yield rose 3 bps to 3.691%. Dollar index rose 0.4% to 106.06. Gold was flat at $1754 per ounce.

 

Brent crude futures dropped 1.6%, to $83.97 a barrel while WTI crude futures were down 1.7%, at $76.62a barrel.

 

European markets ended flat to modestly higher.

 

China on Friday reported a new daily record for COVID-19 infections, as cities across the country continued to enforce mobility measures and other curbs to control outbreaks.

 

For the week, US indices gained 0.7%-1.8%. US 10-year treasury yield fell 14 bps. Dollar index was down 0.8%. Gold inched up 0.2%. Oil fell 4%.

 

Over the weekend, the People’s Bank of China announced it would cut the reserve requirement ratio for banks by 25 bps to 7.8% and inject around 500 billion yuan in long-term liquidity.

 

AT HOME

 

Sensex and Nifty ended marginally higher after a rangebound session, extending the winning streak to fourth consecutive day. Sensex settled at 62293, up 21 points while Nifty added 28 points to finish at 18512. Nifty mid-cap and small-cap indices climbed 1% and 1.1% respectively. Nifty Media and Realty indices were the top gainers among the sectoral indices, up 2.5% and 1.2% respectively while FMCG and Financial Services indices were the top losers, down 0.3% each.

 

FIIs net bought stocks worth Rs 369 cr but net sold index futures and stock futures worth Rs 1657 cr and 285 cr respectively. DIIs were net sellers to the tune of Rs 296 cr.

 

Rupee depreciated 6 paise to end at 81.69/$.

 

For the week, Sensex and Nifty gained 1% and 1.1% respectively to register highest ever weekly close.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai have opened with deep cuts of 4% and 2% respectively amid unrest in China over its continued zero-Covid policy. Nikkei is down 0.8% and SGX Nifty is suggesting around 70 points lower start for our market.

 

In Friday's report we had said that 18604, the top made last year, was the next upside level to eye while 18300 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 18534, closed at 18512.

 

18604, the top made last year, continues to be upside level to eye while 18300 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43800 is the next upside level to eye while 42600-42500 is the immediate support area on the hourly chart, with the stop-loss of which, trading longs can be held on to.