19050 ABOVE 18887; 18660 CONTINUES TO BE IMMEDIATE SUPPORT

 

19050 ABOVE 18887; 18660 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices fell 0.3%-1.2%, extending the losing streak to third consecutive day.

 

Federal Reserve Chair Jerome Powell, in remarks prepared for testimony before the House Financial Services Committee, said more rate hikes are likely ahead to combat inflation.

 

 

U.S. 10-year treasury yield was unchanged at 3.725%. Dollar index fell 0.4% to 102.08. Gold fell 0.2% to $1932 per ounce.

 

Brent futures firmed 23 cents to $76.13 a barrel and WTI crude futures inched up 26 cents to $71.45 a barrel.

 

European markets fell 0.1%-0.6%. U.K. inflation figures came in higher than expected at 8.7% for May. Core inflation — excluding energy and food — accelerated to 6.5% from 6.2% in April.

 

AT HOME

 

Sensex and Nifty inched up 0.3% and 0.2% respectively, with the former hitting record intraday as well as closing high while later notched highest ever close. Sensex settled at 63523, up 195 points while Nifty added 40 points to finish at 18856. Nifty mid-cap and small-cap indices gained 0.8% and 0.1% respectively. Nifty Financial Services and Media indices were the top gainers among the sectoral indices, up 1% and 0.6% respectively while Metal and FMCG indices were the top losers, down 0.9% and 0.4% respectively.

 

 

FIIs net bought stocks and index futures worth Rs 4013 cr and 212 cr respectively but net sold stock futures worth Rs 818 cr.

 

DIIs were net buyers to the tune of Rs 550 cr. Rupee appreciated 8 paise to end at 82.04/$.

 

OUTLOOK

 

Markets in Hong Kong and mainland China, as well as Taiwan are closed for a holiday today. Nikkei is down 0.3% and SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 18887, the high made in December 2022, was the immediate hurdle, while 18660, the low made Tuesday, was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty rose to touch a high of 18875 before closing at 18856.

 

18887, the high made in December 2022, continues to be immediate hurdle, upon crossover of which, 19050, around which an upward sloping trendline adjoining tops made in October 2021 and December 2022 is placed, would be the next target to eye; 18660, the low made Tuesday, continues to be immediate support 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. 43400-43350 is the immediate support area, below which, 42800-42600 would be next support area.

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