STAY LONG WITH THE STOP-LOSS OF 18050

 

STAY LONG WITH THE STOP-LOSS OF 18050

 

WORLD MARKETS

 

U.S. indices fell 0.2%-0.6%, ahead of key inflation reports and White House meeting on debt ceiling.

 

President Joe Biden held a key meeting with congressional leaders after the bell Tuesday, but comments from leadership on both sides suggested that little progress was made.

 

U.S. 10-year treasury yield rose 1 bps to 3.522%. Dollar index rose 0.3% to 101.65. Gold rose 0.7% to $2034 per ounce.

 

Brent crude rose 0.3% to $77.23 a barrel and WTI crude rose 0.5% to $73.49.

 

In Europe, FTSE and CAC fell 0.2% and 0.6% respectively while DAX was little changed.

 

Chinese imports contracted sharply in April from a year earlier while exports grew more slowly than in March.

 

AT HOME

 

After rising nearly half a percent in the morning, benchmark indices gave away all the gains in noon to end flat. Sensex settled at 61761, down 3 points while Nifty added 2 points to finish at 18266. Nifty mid-cap and small-cap indices too ended little changed. Nifty PSU Bank index tumbled 2.8%, becoming top loser among the sectoral indices, followed by 0.4% lower FMCG index. IT and Auto indices were the top gainers, up 0.7% and 0.5% respectively.

 

FIIs net bought stocks and stock futures worth Rs 1942 cr and 60 cr respectively but net sold index futures worth Rs 516 cr. DIIs were net buyers to the tune of Rs 405 cr.

 

Rupee depreciated 24 paise to end at 82.04/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-0.9% and SGX Nifty is suggesting around 40 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, is the next upside level to eye while 18050-18000 is the support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 18344, slipped to end at 18266. The benchmark is set to open near 18300 today.

 

18447, the 78.6% retracement level of the entire 18887-16828 fall, continues to be next upside level to eye; 18050 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43740, the top made last week, is the resistance to eye; 42582, the low made last week, is the immediate support. 

 

Dr Reddy's and L & T will report their quarterly earnings today.

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