18458 ABOVE 18300; 17900 BELOW 18060

 

18458 ABOVE 18300; 17900 BELOW 18060

 

WORLD MARKETS

 

U.S. indices fell 0.1%-0.3% on Friday, giving away initial gains, as GOP negotiators halted ongoing debt ceiling negotiations, stoking doubt of a deal being reached soon.

 

Federal Reserve Chairman Jerome Powell, speaking at a central bank conference in Washington, said tighter credit conditions mean that policy rate may not need to rise as much as it would have otherwise to quell inflation.

 

U.S. 10-year treasury yield rose 3 bps to 3.678%. Dollar index fell 0.3% to 103.19 after hitting seven-week peak in previous session. Gold rose 1% to $1977 per ounce.

 

Brent futures settled 0.8%, lower at $75.58 a barrel, while WTI crude for July expiry fell 0.3% to $71.69.

 

European markets rose 0.2%-1%. German producer prices rose slightly more than forecast.

 

AT HOME

 

After falling four tenth of a percent in the morning, benchmark indices reversed these losses through the session to end higher by just under half a percent. Sensex settled at 61729, up 297 points while Nifty added 73 points to finish at 18203. This was the first positive day in four for both the indices. Nifty mid-cap index ended marginally in the red while small-cap index was little changed. Nifty IT and Realty indices were the top gainers among the sectoral indices, up 1.5% and 0.9% respectively while Pharma and Healthcare indices were the top losers, down 1% and 0.3% respectively.

 

 

FIIs net sold stocks and index futures worth Rs 113 cr and 565 cr respectively but net bought stock futures worth Rs 1952 cr. DIIs were net buyers to the tune of Rs 1071 cr.

 

Rupee depreciated 6 paise to end at 82.66/$.

 

For the week, Sensex and Nifty fell 0.5% and 0.6% respectively, with Nifty snapping 3-week winning streak.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.3% and 0.1% respectively while Nikkei is flat. SGX Nifty is suggesting a marginally lower start for our market.

 

18060, the bottom made Friday, roughly coincided with 20-DMA as well as the bottoms made in early May, making it immediate support to eye. If this level breaks, next support will come around 17900, around which 34-DMA is placed. On the way up, 18300 is the immediate hurdle on the hourly chart, upon crossover of which, 18458, the top made during the week, would be bigger hurdle to eye.

 

For Banknifty, 44151, the top last week, which exactly coincided with the record high made in December 2022, is the immediate hurdle, upon crossover of which, 44800-44900 would be next target area. On the way down, 43446, the low made during the week, is the immediate support, upon breach of which, 42800-42600 would be next support area.

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