NIFTY SET TO CHALLENGE 18887 HURDLE

 

NIFTY SET TO CHALLENGE 18887 HURDLE

 

WORLD MARKETS

 

U.S. indices climbed 0.6%-1.6%, with Dow snapping a 6-day losing streak.

 

May durable goods orders data showed a surprising increase for the month, while home sales and consumer confidence came in stronger than expected.

 

European Central Bank President Christine Lagarde said inflation was still too high in the euro area and it was too soon to “declare victory.”

 

U.S. 10-year treasury yield rose 4 bps to 3.768%. Dollar index fell 0.2% to 102.50. Gold fell half a percent to $1913 per ounce.

 

Brent crude futures fell 2.6% to $72.26 a barrel and WTI futures dropped 2.4% to $67.70.

 

European markets rose 0.1%-0.4%.

 

AT HOME

 

Benchmark indices climbed 0.7% each and registered second best close ever. Sensex settled at 63416, up 446 points while Nifty added 126 points to finish at 18817. Nifty mid-cap and small-cap indices gained 0.5% and 0.6% respectively. Except marginally lower FMCG and Oil & Gas indices, all the NSE sectoral indices ended higher, with Nifty Financial Services and Realty indices being the top gainers, up 1.6% and 1.2% respectively.

 

FIIs net bought stocks and stock futures worth Rs 2024 cr and 1329 cr respectively but net sold index futures worth Rs 2861 cr. DIIs were net sellers to the tune of Rs 1991 cr.

 

Rupee appreciated 1 paise to end at 82.03/$.

 

India’s current account deficit for Jan-March 2023 quarter came in at just 1.3 billion dollars or 0.2% of GDP. This is the lowest since Q1 of FY22. However, expectation was of a minor current account surplus of 5-6 billion dollars or 0.5% of GDP.

 

OUTLOOK

 

Today morning, Nikkei is up 0.7% but Hang Seng and Shanghai are down 0.3% and 0.6% respectively. SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 18647 continued to be immediate support, while 18887 continued to be immediate hurdle.

 

Nifty surged to touch a high of 18829 before closing at 18817 and is set to open above 18850 today.

 

18887 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.

 

For Banknifty, 44500 is the immediate hurdle, upon crossover of which, 44800 would be next target; 43600 is immediate support.

 

Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.