STAY SHORT WITH THE STOP-LOSS OF 18350

 

STAY SHORT WITH THE STOP-LOSS OF 18350

 

WORLD MARKETS

 

U.S. indices gained 0.3%-1.5%, with the S & P 500 and Nasdaq Composite notching their highest closing levels since August 2022, as optimism grew about timely debt ceiling deal.

 

House Speaker Kevin McCarthy said he’s optimistic congressional negotiators could reach a deal in time for a House vote next week.

 

Weekly initial jobless claims came in at 242,000, lower than the forecasts of 254,000. Philadelphia Federal Reserve’s manufacturing index improved to -10.4 in May from -31.3 in April. Markets were forecasting a contraction of -19.8.

 

Walmart rose 1.3% on the back of its strong quarterly result.

 

Dallas Fed President Lorie Logan said the latest economic data doesn’t support a pause in rate hikes yet.

 

U.S. 10-year treasury yield rose 8 bps to 3.65%. Dollar index rose 0.6% to 103.52. Gold fell 1.2% to $1958 per ounce.

 

Brent futures fell 1.2% to $75.98 a barrel while WTI crude fell 1.1% to $72.04.

 

In Europe, DAX surged 1.3% and hit 17-month high. CAC and FTSE gained 0.6% and 0.25% respectively.

 

AT HOME

 

After rising more than half a percent in the initial trade, Sensex and Nifty saw a sustained downward move through the session to end lower by 0.2% and 0.3% respectively. Sensex settled at 61431, down 128 points while Nifty lost 51 points to finish at 18130. This was the third consecutive red day for both the indices. Nifty mid-cap and small-cap indices fell 0.6% and 0.5% respectively. Nifty Realty and PSU Bank indices were the top losers among the sectoral indices, down 2.4% and 1.9% respectively. Financial Services and Private Bank indices were the top gainers, up 0.3% each.

 

FIIs net bought stocks and index futures worth Rs 970 cr and 656 cr respectively, but net sold stock futures worth Rs 1140 cr. DIIs were net sellers to the tune of Rs 850 cr.

 

Rupee depreciated 22 paise to end at 82.60/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.8% but Hang Seng and Shanghai are down 1.6% and 0.8% respectively. SGX Nifty is suggesting around 20 points higher start for our market.

 

In yesterday's report we had said that 18100-18050 continued to be next support area while 18300-18350 was the immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.

 

Nifty, after touching a high of 18297, reversed and plunged all the way to 18104 before closing at 18130.

 

18100-18050 continues to be immediate support area, upon breach of which, 17863, the top made in mid-April, would be the next support to eye; 17300-17350 continues to be immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 43446, the low made Wednesday, is the immediate support, upon breach of which, 42800-42600 would be next support area; 44150, the top made on Monday, is the immediate hurdle.

 

JSW Steel, NTPC and Powergrid will report their quarterly earnings today.

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