18887 ABOVE 18662; 18450-18400 IS THE SUPPORT AREA

 

18887 ABOVE 18662; 18450-18400 IS THE SUPPORT AREA

 

WORLD MARKETS

 

U.S. indices surged 1.1%-2.1% on Friday, with the Dow notching it's best day since January, on the back of strong jobs report and the passage of a debt ceiling bill that averts a U.S. default. Nasdaq hit highest level after April 2022.

 

Nonfarm payrolls grew 339,000, much more than expected figure of 190,000. However, average hourly earnings rose less than expected, while the unemployment rate rose to 3.7% from a 53-year low of 3.4% in April.

 

The Senate passed a bill to raise the debt ceiling late Thursday night, sending the bill to President Joe Biden’s desk.

 

U.S. 10-year treasury yield rose 10 bps to 3.696%. Dollar index rose half a percent to 104.0. Gold fell 1.5% to $1947 per ounce.

 

Brent futures settled up 2.5% to $76.13 a barrel and WTI crude rose 2.3% to $71.74.

 

European markets gained 1.2%-1.9%.

 

For the week, Dow and Nasdaq climbed 2% each while S & P 500 rose 1.8%. Nasdaq notched its sixth straight week higher. In Europe, FTSE and CAC fell 0.3% and 0.7% respectively but DAX rose 0.4%. In Asia, Shanghai and Nikkei rose 1.4% each while Hang Seng rose 1.1%. Indian indices inched up marginally.

 

U.S. 10-year treasury yield fell 11 bps to 3.696%, snapping a 4-week winning streak. Dollar index fell 0.2%, snapping 3-week winning streak. Gold rose 1.3% for the week for its first positive week in four and its best weekly performance since April.

 

Brent and WTI crude both fell more than 1% for their first weekly losses in three weeks as mixed messages from major producers clouded the supply outlook ahead of the OPEC+ meeting this weekend.

 

AT HOME

 

Sensex and Nifty gained 0.2% and 0.25% respectively after a choppy session, snapping a 2-day losing streak. Sensex settled at 62547, up 118 points while Nifty added 46 points to finish at 18534. Nifty mid-cap and small-cap indices rose half a percent each, extending the winning streak to 10th consecutive session. Except 0.7% and 0.4% lower Oil & Gas and IT indices respectively, all the NSE sectoral indices ended higher, with Realty and Metal indices on the top, up 1.4% and 1.2% respectively.

 

FIIs net sold stocks worth Rs 657 cr but net bought index futures and stock futures worth Rs 476 cr and 2546 cr respectively. DIIs were net buyers to the tune of Rs 582 cr.

 

Rupee appreciated 10 paise to end at 82.31/$.

 

For the week, Sensex and Nifty inched up 0.1% and 0.2% respectively. Nifty mid-cap and small-cap indices climbed 1.6% and 3.1% respectively.

 

OUTLOOK

 

Today morning, Nikkei is up 1.6%, Hang Seng is up 0.1% while Shanghai is flat. SGX Nifty is suggesting around 75 points higher start for our market.

 

In Friday's report we had said that 18662, the top made on Tuesday, was the immediate hurdle, upon crossover of which, 18887, the record high made in December 2022, would be next major target; We had also advised holding on to longs with the stop-loss of 184000.

 

Nifty rose to close at 18534 and is set to open near 18600 today.

 

18662, the top made last week, is the immediate hurdle, upon crossover of which, 18887, the record high made in December 2022, would be the next major target to eye; On the way down, 18400-18450 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 44200-44300 is the immediate resistance zone on the hourly chart, upon crossover of which, 44500, the top made during the week, would be next hurdle; 43706, the low made during the week, which coincided with 20-DMA, is the immediate support.

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