18887 IS THE NEXT TARGET; 18600-18550 IS THE SUPPORT AREA

 

18887 IS THE NEXT TARGET; 18600-18550 IS THE SUPPORT AREA

 

WORLD MARKETS

 

U.S. indices surged 1.2%-1.3%, with S&P 500 and Nasdaq Composite posting a sixth-straight day of gains.

 

U.S. initial jobless claims were unchanged at 262,000 for last week, the expected figure being 249,000. Industrial output dropped 0.2% in May, missing expectations for a 0.1% increase.

 

U.S. 10-year treasury yield fell 7 bps to 3.72%. Dollar index fell 0.8% to 102.14. Gold rose 0.6% to $1955 per ounce.

 

The euro hit a 15-year peak against the yen and a five-week high against the dollar after European Central Bank raised rates by 25 to 3.5%, the highest in 22 years, and signaled further tightening to bring euro zone inflation to its medium-term target of 2%.

 

Brent and WTI crude futures rose 3.4% each to $75.67 and $70.62 a barrel respectively.

 

In Europe, FTSE rose 0.3% but DAX and CAC fell 0.1% and 0.5% respectively.

 

AT HOME

 

Sensex and Nifty slipped 0.5% and 0.4%, snapping a 3-day winning streak. Sensex settled at 62917, down 310 points while Nifty lost 67 points to finish at 18688. Nifty mid-cap and small-cap indices however rose 0.2% each. Nifty Bank was the top loser among the sectoral indices, down 1.2%, followed by 1% lower Media and Financial Services indices. Healthcare and Pharma indices were the top gainers, up 1.6% and 1.4% respectively.

 

FIIs net bought stocks worth Rs 3086 cr but net sold index futures and stock futures worth Rs 745 cr and 1441 cr respectively. DIIs were net sellers to the tune of Rs 298 cr.

 

Rupee depreciated 8 paise to end at 82.18/$.

 

India's trade deficit in May widened to a five-month high of $22.1 bn as exports dipped 10.3%  to $35 bn while imports fell 6.6% to $57.1 bn.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.3% and 0.2% respectively but Nikkei is off 0.7%. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 18777, the top made last week, continued to be immediate upside level to eye, above which, 18887, the record high made in December 2022, would be next target; We had also advised holding on to longs with the stop-loss of 18555.

 

Nifty, after touching a high of 18794, slipped to end at 18688.

 

18887, the record high made in December 2022, is the next upside level to eye; 18600-18550 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43390, the low made on 25th May, is the immediate support, below which, 42800-42600 would be next support area; 44000 is immediate hurdle.

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