18887 ABOVE 18696; 18550-18500 IS THE IMMEDIATE SUPPORT AREA

 

18887 ABOVE 18696; 18550-18500 IS THE IMMEDIATE SUPPORT AREA

 

WORLD MARKETS

 

US indices fell 0.4%-0.8% after Federal Reserve raised interest rates by half a percentage point as expected and indicated that it will continue raising rates to tame inflation.

 

Fed officials forecast raising rates through next year, not lowering rates until 2024. The central bank ultimately sees itself taking rates to 5.1% before it stops hiking, a so-called terminal rate that is higher than the 4.6% level it forecast in September.

 

US 10-year treasury yield fell 2 bps to 3.483%. Dollar index fell 0.4% to 103.62. Gold eased 0.2% to $1807 per ounce.

 

Brent crude futures settled up $2.02 at $82.70 per barrel and WTI crude futures rose $1.94 to $77.28.

 

European markets fell 0.1%-0.3%.

 

AT HOME

 

Sensex and Nifty gained 0.2% and 0.3% respectively, extending the rebound which started on Monday. Sensex settled at 62677, up 144 points while Nifty added 52 points to finish at 18660. Nifty mid-cap and small-cap indices gained 0.6% and 0.7% respectively, extending the winning streak to third straight day. Except 0.4% lower FMCG index, all the NSE sectoral indices ended higher, with Realty and Metal indices on the top, up 1.4% and 1.2% respectively.

 

FIIs net bought stocks and stock futures worth Rs 372 cr and 559 cr respectively but net sold index futures worth Rs 636 cr. DIIs were net buyers to the tune of Rs 926 cr.

 

Rupee appreciated 35 paise to end at 81.46/$.

 

OUTLOOK

 

Today morning, Hang Seng is down 2% while Shanghai and Nikkei are off 0.5% and 0.25% respectively. SGX Nifty is suggesting around 60 points lower start for our market.

 

In yesterday's report we had said that upon sustained trading above 18668/first hour high, 18887, the top made on 1st December, would be the next target.

 

Nifty, after making a top of 18696 in the initial trade, eased to end at 18660 and is set to open near 18600 today.

 

A crossover of 18696, the high made yesterday, would confirm a "Buy" on the hourly chart, paving the way for next upside target of 18887, the top made on 1st December; 18550-18500 is the immediate support area, below which, 18345, the low made Monday, would be the crucial support.

 

For Banknifty, 44300-44350 continues to be next target area; 43700-43600 is the immediate support area, with the stop-loss of which, trading longs can be held on to.