NIFTY ACHIEVES 18604; TRAIL STOP-LOSS TO 18360

 

NIFTY ACHIEVES 18604; TRAIL STOP-LOSS TO 18360

 

WORLD MARKETS

 

US indices tumbled 1.4%-1.6% as prolonged Covid restrictions and social unrest in China raised supply chain concerns.

 

Apple fell 2.6% on reports that unrest at a factory in China could mean 6 million fewer iPhone Pro units for the year.

 

St. Louis Fed President James Bullard said that the Fed needs to raise interest rates quite a bit further and then hold them there throughout next year and into 2024 to gain control of inflation and bring it back down toward the Fed’s 2% goal.

 

US 10-year treasury yield was little changed at 3.683%. Dollar index rose 0.6% to 106.66. Gold fell 0.7% to $1741 per ounce.

 

WTI crude settled 1.3% higher at $77.24 while Brent crude closed half a percent lower at $83.19 a barrel. 

 

European markets fell 0.2%-1.1%

 

AT HOME

 

After starting around half a percent lower, benchmark indices soared to make a fresh record highs and ended higher by three tenth of a percent each. Sensex settled at 62504, up 211 points while Nifty added 50 points to finish at 18562. Nifty mid-cap and small-cap indices climbed 0.7% and 1.2% respectively. Nifty Oil & Gas index surged 1.6%, becoming top gainer among the sectoral indices, followed by 0.6% higher Auto index. Metal index tumbled 1.1% to become top loser, followed by 0.1% lower Financial Services, IT and Consumer Durables indices.

 

FIIs net bought stocks and index futures worth Rs 936 cr and 1414 cr respectively but net sold stock futures worth Rs 1464 cr. DIIs were net buyers to the tune of Rs 88 cr.

 

S&P cut India's FY23 GDP growth forecast by 30 bps to 7% and FY24 by 50 bps to 6%.

 

Rupee appreciated 2 paise to end at 81.67/$.

 

OUTLOOK

 

Today morning, Hang Seng and Sahnghai are up 2% and 0.8% respectively while Nikkei is down half a percent. SGX Nifty is suggesting around 40 points lower start for our market.

 

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

 

Nifty surged to touch a high of 18614 before closing at 18562.

 

18700-18750 is the next target area for Nifty; Immediate support on the hourly chart has moved up to 18360, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43800-44000 is the next target area 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.