19991-19600 IS THE IMMEDIATE RANGE

 

19991-19600 IS THE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow rose 0.2% while S & P 500 and Nasdaq inched lower by 0.02% and 0.1% respectively after the Fed implemented a widely-expected 25 bps hike, bringing interest rates to their highest level since 2001.

 

Remarks from Chair Jerome Powell hinted the central bank could also hold rates steady at these levels, and suggested that the Federal Open Market Committee will remain data-dependent.

 

U.S. 10-year treasury yield fell 2 bps to 3.871%. Dollar index fell 0.3% to 101.03. Gold rose 0.3% to $1971 per ounce.

 

Brent crude futures closed down 0.9% at $82.92 a barrel, while WTI crude settled at $78.78, down 1.1%.

 

European markets fell 0.2%-1.4% with CAC leading the losses.

 

AT HOME

 

After Tuesday's consolidation, bulls decided to take charge as benchmark indices climbed half a percent each yesterday. Sensex settled at 66707, up 351 points while Nifty added 97 points to finish at 19778. Nifty mid-cap and small-cap indices rose 0.4% and 0.2% respectively, with the former hitting fresh record high. Except 0.3% and 0.01% lower Consumer Durables and Auto indices respectively, all the NSE sectoral indices ended higher, with PSU Bank and Realty indices on the top, up 1.5% and 1.2% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 923 cr, 381 cr and 2709 cr respectively. DIIs were net buyers to the tune of Rs 470 cr.

 

Rupee depreciated 13 paise to end at 82/$.

 

Axis Bank's results were operationally weak even as asset quality improves. Bajaj Finance reports decline in Net Interest Margins to below 10% even as it expects asset quality and return on assets and equity to improve in long term. Earnings from both Dr Reddy's and Cipla beat estimate. Dr Reddy's reported 29% rise in revenue while margins crossed 30%. Cipla's revenue rose nearly 18%. Tech Mahindra was a miss on all counts. Constant Currency revenue dipped over 4% while profit was down 38%. Tata Consumer results were largely in-line with estimate.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.9% and 0.2% respectively while Nikkei is off 0.1%. GIFT Nifty is suggesting around 75 points higher start for our market.

 

In yesterday's report we had said that 19650-19600 was the immediate support area while 19991, the top made last week, continued to be immediate hurdle.

 

Nifty surged to touch a high of 19825 before closing at 19778. The benchmark is set to open near 19850 today.

 

19991, the top made last week, continued to be immediate hurdle; 19650-19600 continues to be immediate support area.

 

For Banknifty, 45400 continues to be immediate support on the hourly chart; 46500, followed by 46800 are the upside targets to eye.

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