18531 IS IMMEDIATE SUPPORT; 18777 IMMEDIATE HURDLE

 

18531 IS IMMEDIATE SUPPORT; 18777 IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices rose 0.1%-0.2% on Friday.

 

U.S. 10-year treasury yield rose 2 bps to 3.743%. Dollar index rose 0.2% to 103.55. Gold fell 0.25% to $1961 per ounce.

 

European markets fell 0.1%-0.5%

 

Brent crude futures fell 1.5% to $74.79 a barrel while WTI crude fell 1.6% to $70.17 a barrel.

 

China’s consumer price index rose 0.2% in May while its producer prices fell 4.6% y-o-y, marking the steepest drop since May 2016.

 

For the week, U.S. indices rose 0.1%-0.4%, with Nasdaq and S & P 500 rising for 7th and 4th consecutive week respectively while Dow advanced for the second straight week.

 

AT HOME

 

Benchmark indices fell 0.4% each, extending losing streak to second straight day. Sensex settled at 62625, down 223 points while Nifty lost 71 points to finish at 18563. Nifty mid-cap and small-cap indices fell 0.1% each. Except 0.2% and 0.04% higher Private Bank and Realty indices respectively, all the NSE sectoral indices ended in red, with PSU Bank and FMCG indices being the top losers, down 1.2% and 0.9% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 309 cr, 618 cr and 1149 cr respectively. DIIs were net buyers to the tune of Rs 1245 cr.

 

Rupee appreciated 10 paise to end at 82.46/$.

 

For the week, Sensex and Nifty inched up 0.1% and 0.2% respectively, extending the winning streak to third consecutive week.

 

OUTLOOK

 

Today morning, Nikkei is up 0.7% but Hang Seng and Shanghai are off 0.2% and 0.4% respectively. SGX Nifty is suggesting around 50 points higher start for our market.

 

In Friday's report we had said that 18887, continued to be next upside level to eye while 18550 continued to be immediate support on hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty fell to 18555 before closing at 18563 and is set to open near 18600 today.

 

18531, the low made last week, is the immediate support, upon breach of which, 20 DMA, placed around 18450 would be next downside levels to eye; 18777, the top made last week, is the immediate hurdle. Meanwhile, trading longs can be held on to with the stop-loss of 18531.

 

For Banknifty, 43706, the low made last week, around which 34-DMA is also placed, is the important immediate support, upon breach of which, 43390, the low made on 25th May, would be next downside level to eye; 44500 is the immediate hurdle, upon crossover of which, 45000-45200 would be next upside target area.

 

India’s May CPI and April IIP data will be released today.

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