STAY LONG WITH THE STOP-LOSS OF 18531

 

STAY LONG WITH THE STOP-LOSS OF 18531

 

WORLD MARKETS

 

U.S. indices gained 0.6%-1.5%, with the S & P 500 and Nasdaq both scaling their highest levels in 13-month. The move came ahead of Tuesday's CPI data and Wednesday's Fed decision.

 

U.S. 10-year treasury yield was little changed at 3.739%. Dollar index inched up 0.1% to 103.63. Gold fell 0.2% to $1957 per ounce.

 

Brent crude futures plunged 3.9% to $71.84 a barrel, their lowest since Dec. 2021. WTI crude fell 4.4% to settle at $67.12 a barrel. Goldman Sachs cut its Brent crude price forecast from $95 to $86 and WTI price forecast to $81 from $89, citing higher-than-expected supplies later this year and through 2024.

 

European markets gained 0.1%-0.9%.

 

AT HOME

 

Benchmark indices rose a fifth of a percent each, snapping a 2-day losing streak. Sensex settled at 62724, up 99 points while Nifty added 38 points to finish at 18601. Nifty mid-cap and small-cap indices gained 0.6% and 0.9% respectively. Nifty IT and Realty indices climbed 1.5% and 1.4% respectively, becoming top gainers among the sectoral indices while Nifty Bank and Financial Services indices were the top losers, down 0.1% each.

 

Rupee appreciated 3 paise to end at 82.43/$.

 

FIIs net sold stocks worth Rs 627 cr but net bought index futures and stock futures worth Rs 969 cr and 524 cr respectively. DIIs were net buyers to the tune of Rs 1794 cr.

 

India's May CPI fell to a 25-month low of 4.25% from 4.7% in April. April Industrial Production rose 4.2%, rising from a five-month low of 1.7% in March.

 

OUTLOOK

 

Today morning, Nikkei is up 1.6%, Shanghai is little changed while Hang Seng is down 0.6%. SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 18531, the low made last week, was the immediate support, while 18777, the top made last week, was the immediate hurdle.

 

Nifty, after touching a low of 18559, rebounded to end at 18601. The benchmark is set to open near 18650 today.

 

18777, the top made last week, is the immediate upside level to eye, above which, 18887, the record high made in December 2022, would be next target; 18531, the low made last week, continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

 

For Bannifty, 43706, the low made last week, around which 34-DMA is also placed, is the important immediate support, upon breach of which, 43390, the low made on 25th May, would be next downside level to eye; 44500 is the immediate hurdle, upon crossover of which, 45000-45200 would be next upside target area.

 

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