18400 CONTINUES TO BE IMMEDIATE SUPPORT

 

18400 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow fell 0.4% while S & P 500 and Nasdaq fell 0.6% each, ahead of House vote on debt ceiling deal.

 

After passing a key procedural vote in the House Rules Committee on Tuesday, the Fiscal Responsibility Act was scheduled to face a floor vote in the Republican-majority House around 8.30 pm ET Wednesday.

 

On the economic data front, April job openings were unexpectedly higher, while the Chicago PMI was lower than expected.

 

U.S. 10-year treasury yield fell 4 bps to 3.646%. Dollar index rose 0.2% to 104.23. Gold inched up 0.2% to $1963 per ounce.

 

Brent crude futures for August delivery settled down $1.11 to $72.60 a barrel. WTI settled down $1.37 to $68.09.

 

European markets slipped 1%-2%. Flash figures showed inflation in France cooled to 6% in May, down from 6.9% in April.

 

Data out of China showed manufacturing PMI declined for a second straight month and at a faster rate than expected; and property pricing and transactions “weakened sharply.”

 

For the month, Nasdaq climbed 5.8%, S & P 500 inched up 0.3% while Dow fell 3.5%.

 

AT HOME

 

Benchmark indices slipped half a percent each, snapping a 4-day winning streak. Sensex settled at 62622, down 346 points while Nifty lost 99 points to finish at 18534. Nifty mid-cap and small-cap indices however gained 0.4% and 1% respectively, with the former hitting fresh record high and later hitting it's highest level after 4th May 2022. Nifty Financial Services and Metal indices fell 0.8% each, becoming top losers among the sectoral indices while Realty, Healthcare and Consumer Durables indices gained 0.8% each, becoming top gainers.

 

FIIs net bought stocks worth Rs 3406 cr but net sold index futures and stock futures worth Rs 2027 cr and 2114 cr respectively. DIIs were net sellers to the tune of Rs. 2529 cr.

 

Rupee depreciated 1 paise to end at 82.72/$.

 

India's Q4 FY23 GDP stood at 6.1%, up from 4.4% growth witnessed in Q3 and beat estimate. FY23 GDP growth stood at 7.2%, better-than-estimates but down from 9.5% growth in FY22. FY23 fiscal deficit came in at 6.4%, meeting budgeted target. Core sector growth slowed to six-month low of 3.5% in April.

 

OUTLOOK

 

In the U.S., a bill to raise the debt limit and cap government spending passed in the House by a wide margin late Wednesday.

 

Today morning, Asian markets are trading with gains of 0.2%-1% and SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 18887, the record high made in December 2022, continued to be next major target while 18400 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty fell to 18483 before closing at 18534.

 

18400 continues to be immediate support on the hourly chart; 18887, the record high made in December 2022, continues to be next major target.

 

43822, the low made yesterday, is the immediate support for Banknifty, upon breach of which, 43390, the low made last week, would be next downside level to eye; 44500 is the immediate hurdle, upon crossover of which, 45000-45200 would be next target area.

 

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