18887 ABOVE 18662; 18450 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices fell 0.1%-0.6%, consolidating big gains made in past couple of sessions.

 

Apple, after briefly touching an all-time highs earlier in the session, reversed to end about 0.8% lower. Bank stocks slid following news that regulators are contemplating increasing capital requirements for large banks.

 

ISM non-manufacturing PMI fell to 50.3 last month from 51.9 in April and vs expectation of 52.2.

 

U.S. 10-year treasury yield fell 1 bps to 3.685%. Dollar index was little changed at 103.99. Gold rose 0.7% to $1961 per ounce.

 

Brent crude futures rose 0.6% to $76.57 a barrel and WTI futures stood at $72.03, over 0.4% higher.

 

European markets fell 0.1%-1%

 

AT HOME

 

Sensex and Nifty gained 0.4% and 0.3% respectively, extending Friday's similar gains. Sensex settled at 62787, up 240 points while Nifty added 60 points to finish at 18593. Nifty mid-cap and small-cap indices rose 0.1% and 0.4% respectively. Nifty Auto and Media indices climbed 1.3% and 0.9% respectively, becoming top gainers among the sectoral indices while FMCG and PSU Bank indices were the top losers, down 0.4% each.

 

FIIs net sold stocks worth Rs 701 cr but net bought index futures and stock futures worth Rs 746 cr and 1388 cr respectively. DIIs were net buyers to the tune of Rs 1196 cr.

 

Rupee depreciated 36 paise to end at 82.67/$.

 

India’s services PMI fell to 61.2 in May from 62.0 in April while composite PMI was unchanged at 61.6.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 0.6% and 0.1% respectively while Shanghai is off 0.2%. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 18662, the top made last week, was the immediate hurdle, upon crossover of which, 18887, the record high made in December 2022, would be the next major target to eye. We had also advised holding on to longs with the stop-loss of 18400.

 

Nifty, after touching a high of 18640, slipped to end at 18593.

 

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

 

For Banknifty, 44500, the top made last week, is the immediate hurdle; 43706, the low made last week, is the immediate support.

 

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