18550-18600 IS THE NEXT UPSIDE TARGET AREA; TRAIL STOP-LOSS TO 18200

 

18550-18600 IS THE NEXT UPSIDE TARGET AREA; TRAIL STOP-LOSS TO 18200

 

WORLD MARKETS

 

U.S. indices gained 0.1%-0.7%, with the Dow snapping a 5-day losing streak, ahead of the resumption of debt ceiling talks.

 

President Joe Biden is scheduled to meet with congressional leaders today for face-to-face talks.

 

May Empire State Manufacturing survey plunged about 43 points from April to a reading of -31.8, below the estimate of -5.

 

U.S. 10-year treasury yield rose 4 bps to 3.508%. Dollar index fell 0.3% to 102.42. Gold rose 0.2% to $2016 per ounce.

 

Brent crude futures rose .4% to $75.23 a barrel and WTI crude settled at $71.11 a barrel, up 1.5%.

 

In Europe, FTSE rose 0.3% while DAX and CAC were little changed.  The EU’s executive arm raised its forecasts for inflation for the euro area to 5.8% this year and 2.8% in 2024, and said it expects the ECB to continue with rate hikes. But it also revised its GDP estimates higher, forecasting 1% growth this year from a previous 0.8% estimate.

 

AT HOME

 

Benchmark indices rose half a percent each and closed at the highest level after Mid-December 2022. Sensex settled at 62345, up 317 points while Nifty added 84 points to finish at 18398. Nifty mid-cap and small-cap indices gained 0.7% and 0.8% respectively. Except a flat Oil & Gas index, all the NSE sectoral indices ended higher, with Realty and Media indices being the top gainers, up 4.3% and 2.1% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1685 cr, 1290 cr and 646 cr respectively. DIIs were net buyers to the tune of Rs 191 cr.

 

Rupee depreciated 14 paise to end at 82.30/$.

 

India's wholesale inflation hit a 34-month low as it contracted 0.9% in April as against a rise of 1.34% in March.

 

India's April trade deficit came in at 21-month low of $15.24 bn Vs $18.36 bn Y-o-Y. Imports fell 14% y-o-y to $49.90 bn while exports dipped 12.7% to $34.66 bn.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.7% and 0.5% respectively while Shanghai is off quarter of a percent. SGX Nifty is suggesting around 35 points higher start for our market.

 

In yesterday's report we had said that 18447, the 78.6% retracement level of the entire 18887-16828 fall, was the next upside target while 18100 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged to touch a high of 18458 before closing at 18398.

 

18550-18600 is the next upside zone to eye for Nifty; Immediate support on the hourly chart has moved up to 18200, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 44900 is the next upside level to eye; 43500 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

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