18458 CONTINUES TO BE HURDLE; 18250-18200 IS THE SUPPORT AREA

 

WORLD MARKETS

 

U.S. indices fell 0.7%-1.3% as ongoing debt ceiling discussions appeared to yield little progress.

 

Sales of new U.S. single-family homes jumped to a 13-month high in April. S&P Global’s flash U.S. Composite PMI also climbed to a reading of 54.5 this month, which is the highest level since April 2022 and followed a final reading of 53.4 in April.

 

U.S. 10-year treasury yield fell 2 bps to 3.696%. Dollar index rose 0.3% to 103.52, it's highest level in 2-months. Gold rose 0.3% to $1975 per ounce.

 

Brent crude futures rose 1.1% to settle at $76.84 a barrel, while WTI crude futures settled at $72.91 a barrel, up 1.2%.

 

European markets fell 0.1%-1.3%. The euro zone Composite PMI for May showed solid growth that continued to be driven by services, with manufacturing hit by weak demand and a fall in selling prices.

 

AT HOME

 

After rising more than half a percent in the morning, benchmark indices gave away most of the gains in late noon trade to end just marginally higher. Sensex settled at 61981, up 18 points while Nifty added 33 points to finish at 18348. Nifty mid-cap index rose 0.6% and hit a record high on daily closing basis while small-cap index ended flat. Nifty Metal and Media indices climbed 2.6% and 1.1% respectively, becoming top gainers among the sectoral indices while IT and Consumer Durables indices were the top losers, down 0.5% and 0.2% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 183 cr, 820 cr and 1236 cr respectively. DIIs were net buyers to the tune of Rs 397 cr.

 

Rupee appreciated 3 paise to end at 82.80/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.6%-1.5% while SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 18458, the top made last week, was the next upside target/hurdle to eye while 18200-18150 was the immediate support zone, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after making a top of 18420, slipped to end at 18348. The benchmark is set to open below 18300 today.

 

18458, the top made last week, continues to be immediate hurdle, a crossover of which is required for a fresh upmove; 18250-18200 is the immediate support zone, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 44151, the top made last week, continues to be immediate hurdle, upon crossover of which, 44800-44900 would be next target area. On the way down, 43446, the low made last week, is the immediate support, upon breach of which, 42800-42600 would be next support area.

 

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