STAY LONG WITH THE STOP-LOSS OF 18550

 

STAY LONG WITH THE STOP-LOSS OF 18550

 

WORLD MARKETS

 

U.S. indices gained 0.5%-1%, with the Dow rising for the third straight session and S & P 500 posting it's best close of 2023.

 

Jobless claims increased more than expected to their highest since October 2021, a potential sign that the labor market is softening.

 

U.S. 10-year treasury yield fell 8 bps to 3.722%. Dollar index tumbled 0.8% to 103.32. Gold jumped 1.3% to $1966 per ounce.

 

Brent crude settled down 1.3% at $75.96 a barrel and WTI crude fell 1.7% to $71.29.

 

In Europe, FTSE fell 0.3% but DAX and CAC rose 0.2% and 0.3% respectively. Euro zone entered a technical recession in the first three months of the year, with revisions to GDP showing a 0.1% contraction in the previous two quarters.

 

AT HOME

 

After gaining three tenth of a percent, benchmark indices plunged to end lower by half a percent, snapping a 4-day winning streak. Sensex settled at 62484, down 294 points while Nifty lost 91 points to finish at 18634. Nifty mid-cap and small-cap indices fell 0.6% and 1% respectively for their first red day in 14 and 15 days respectively. Except 0.2% higher Metal index, all the NSE sectoral indices ended lower, with Realty and Media indices being the top losers, down 1.6% and 1.5% respectively.

 

FIIs net bought stocks worth Rs 212 cr but net sold index futures and stock futures worth Rs 442 cr and 1094 cr respectively. DIIs were net sellers to the tune of Rs 405 cr.

 

Rupee ended unchanged at 82.56/$.

 

RBI's 6-memeber Monetary Policy Committee voted unanimously to keep repo rate unchanged at 6.5%. The "Withdrawal of accommodation" stance was maintained with 5:1 majority. FY24 GDP growth forecast was left unchanged at 6.5% while CPI forecast was lowered from 5.2% to 5.1%.

 

OUTLOOK

 

Today morning, Nikkei is up 1.6% while Hang Seng and Shanghai are up 0.3% and 0.2% respectively. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 18887, the record high made in December 2022, was the next upside level to eye while 18550 was the immediate support on hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 18777, slipped to end at 18634.

 

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

 

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