19000 ABOVE 18887; STAY LONG WITH THE STOP-LOSS OF 18670

 

19000 ABOVE 18887; STAY LONG WITH THE STOP-LOSS OF 18670

 

WORLD MARKETS

 

U.S. indices fell 0.3%-0.7% on Friday.

 

University of Michigan’s survey showed U.S. consumers’ near-term inflation expectations dropped to a more than two-year low in June and the outlook over the next five years improved slightly.

 

U.S. 10-year treasury yield rose 5 bps to 3.769%. Dollar index rose 0.2% to 102.29. Gold inched up 0.1% to $1957 per ounce.

 

Brent crude gained 94 cents to settle at $76.61 a barrel and WTI crude rose $1.16 to $71.78.

 

European markets gained 0.2%-1.3%.

 

The Bank of Japan again left its benchmark interest rate unchanged at -0.1% and forecast that inflation will slow later this year.

 

AT HOME

 

Benchmark indices climbed three fourth of a percent and posted highest ever close. Sensex settled at 63384, up 466 points while Nifty added 138 points to finish at 18826. Nifty mid-cap and small-cap indices gained 0.7% and 1% respectively. Except 0.4% and 0.2% lower IT and Realty indices respectively, all the NSE sectoral indices ended higher, with Financial Services and Bank indices on the top, up 1.4% and 1.1% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 795 cr, 1181 cr and 2031 cr respectively. DIIs were net buyers to the tune of Rs 681 cr.

 

Rupee appreciated 25 paise to end at 81.93/$.

 

For the week, Sensex and Nifty gained 1.2% and 1.4% respectively, extending the winning streak to fourth consecutive week and posting highest ever weekly close.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-0.6% and SGX Nifty is suggesting a flat start for our market.

 

In Friday's report we had said that 18887, the record high made in December 2022, was the next upside level to eye while  18600-18550 is the immediate support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty rose to touch a high of 18864 before closing at 18826.

 

18887, the high made in December 2022, is the immediate upside level to eye, upon crossover of which, 19000, around which an upward sloping trendline adjoining tops made in October 2021 and December 2022 is placed, would be the next target to eye; 18700-18670 is the immediate support area on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 44500 is the important immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 45300, around which an upward sloping trendline adjoining tops made in October 2021 and December 2022 is placed, would be the next target to eye. 43400, the low made last week, is the immediate support, below which, 42800-42600 would be next support area.

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