18100-18050 IS THE SUPPORT AREA; 18300-18350 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

U.S. indices climbed 0.2%-1.3% on optimism over debt ceiling deal.

 

At the conclusion of a meeting between Biden and congressional leaders, House Speaker  McCarthy said that a “better process” is now in place for further talks, saying it’s “possible to get a deal by the end of the week.” Later, Biden said that he and the other lawmakers had a “productive” meeting and that he was confident about getting the agreement on the budget.

 

Housing Starts rose 1.6% to a seasonally adjusted annual rate of 846,000 units last month. Data for March was revised down to 833,000 units from 861,000 earlier.

 

U.S. 10-year treasury yield rose 3 bps to 3.57%, rising for the fourth consecutive day. Dollar index rose quarter of a percent to 102.86, it's highest level in seven weeks. Gold fell 0.4% to $1981 per ounce.

 

Brent crude futures settled up 2.7% to $76.96 a barrel and WTI crude rose 2.8% to $72.83.

 

In Europe, FTSE and CAC fell 0.4% and 0.1% respectively but DAX rose 0.3%.

 

AT HOME

 

Benchmark indices fell six tenth of a percent each, matching yesterday's dip and extending the losing streak to second straight session. Sensex settled at 61560, down 371 points while Nifty lost 105 points to finish at 18181. Nifty mid-cap index eased 0.1% while small-cap index gained half a percent. Except 0.1% higher Auto and FMCG indices, all the NSE sectoral indices ended lower, with Media and Realty indices being the top losers, down 2.1% and 1.3% respectively.

 

FIIs net bought stocks worth Rs 149 cr but net sold index futures and stock futures worth Rs 530 cr and 1756 cr respectively. DIIs were net sellers to the tune of Rs 204 cr.

 

Rupee depreciated 17 paise to end at 82.38/$.

 

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-1.3% and SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 18250-18200 was the immediate support zone on the houlry chart, upon breach of which, fall can extend to 18100-18050 area.

 

Nifty broke 18200 and plunged all the way to 18115 before closing at 18181.

 

18100-18050 continues to be next support area; 18300-18350 is the immediate resistance zone, above which, 18458, the top made on Monday, would be next hurdle. Meanwhile, trading shorts can be held on to with the stop-loss of 18350.

 

For Banknifty, 43446, the low made yesterday, is the immediate support, upon breach of which, 42800-42600 would be next support area; 43900-44000 is the immediate resistance zone.

 

SBI and ITC will report their quarterly earnings today.

 

 Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.