ALL EYES ON RBI

 

ALL EYES ON RBI

 

WORLD MARKETS

 

Dow rose 0.3% but S & P 500 and Nasdaq fell 0.4% and 1.3% respectively

 

U.S. trade deficit widened by the most in eight years in April as imports of goods rebounded while exports of energy products declined.

 

U.S. 10-year treasury yield jumped 14 bps to 3.799%. Dollar index was little changed at 101.11. Gold fell 1.2% to $1940 per ounce.

 

Brent crude futures rose 0.9% to $76.95 a barrel and WTI futures gained 1.1% to $72.53.

 

Main European markets ended with modest cuts.

 

Data earlier showed China’s exports shrank much faster than expected in May and imports fell, albeit at a slower pace.

 

AT HOME

 

Sensex and Nifty surged 0.6% and 0.7% respectively, extending the winning streak to fourth consecutive session and registered highest close after 1st December, 2022. Sensex settled at 63142, up 350 points while Nifty added 127 points to finish at 18726. Nifty mid-cap and small-cap indices surged 1% and 1.4% respectively with former hitting record high and later closing at the highest level after 21st April 2022.  All the NSE sectoral indices ended higher, with Realty and Metal indices on the top, up 1.6% and 1.5% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1383 cr, 806 cr and 1893 cr respectively. DIIs were net buyers to the tune of Rs 392 cr.

 

Rupee appreciated 6 paise to end at 82.55/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.1%-0.6% but SGX Nifty is suggesting around 25 points higher start for our market.

 

In yesterday's report we had said that 18662, the top made last week, continued to be 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 18450.

 

Nifty crossed 18662 and surged all the way to 18738 before closing at 18726.

 

18887, the record high made in December 2022, is the next upside level to eye; 18550 is the immediate support on hourly chart, 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, upon crossover of which, 44800-45000 would be next target area; 43706, the low made last week, is the immediate support.

 

RBI's Monetary Policy Committee is widely expected to leave key Repo Rate unchanged when it announces it's decision today.

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