NIFTY RETREATS FROM 18887 HURDLE

 

NIFTY RETREATS FROM 18887 HURDLE

 

WORLD MARKETS

 

U.S. markets were closed for the Juneteenth holiday.

 

European markets fell 0.4%-1%.

 

Brent crude fell 1.5% to $75.46 and WTI crude was down 1.5% to $70.69.

 

Dollar index rose 0.2% to 102.48. Gold fell 0.4% to $1949 per ounce.

 

AT HOME

 

After starting higher by three tenth of a percent, benchmark indices reversed these gains through the session to end lower by around a third of a percent. Sensex settled at 63168, down 216 points while Nifty lost 70 points to finish at 18755. Nifty mid-cap and small-cap indices however inched up 0.04% and 0.3% respectively. Nifty Private Bank and Media indices fell 0.9% each, becoming top losers among the sectoral indices while PSU Bank index was the top gainer, up 1%, followed by 0.4% higher IT and Financial Services indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1031 cr, 1325 cr and 1883 cr respectively. DIIs were net sellers to the tune of Rs 365 cr.

 

Rupee ended unchanged at 81.93/$.

 

 

OUTLOOK

 

China's Central Bank has slashed its one-year and five-year loan prime rate by 10 basis points each to 3.55% and 4.20% respectively.

 

Asian markets are trading with cuts of 0.2%-1% and SGX Nifty is suggesting around 20 points lower start for our market.

 

In yesterday's report we had said that 18887, the high made in December 2022, was the immediate upside level to eye, while 18700-18670 was the immediate support area on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 18881, slipped to end at 18755.

 

18887, the high made in December 2022, is the 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; 18670 is the 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, the low made last week, is the immediate support, below which, 42800-42600 would be next support area.

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