22000-21975 IS THE IMMEDIATE SUPPORT ZONE; 22250 IMMEDIATE HURDLE

 

22000-21975 IS THE IMMEDIATE SUPPORT ZONE; 22250 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.1% each while Nasdaq fell 0.3%.

 

Minutes from the Federal Reserve’s last meeting showed that central bank officials expressed caution about lowering interest rates too quickly and emphasized the importance of “carefully assessing” incoming data in judging whether inflation is moving down sustainably to 2%.

 

U.S. 10-year treasury yield rose 4 bps to 4.319%. Dollar index was flat at 104. Gold inched up 0.1% to $2026 per ounce.

 

WTI crude future rose 1.1% to settle at $77.91 a barrel and Brent futures added 0.8% to settle at $83.03 a barrel.

 

In Europe, DAX and CAC gained 0.3% and 0.2% respectively while FTSE fell 0.7%.

 

AT HOME

 

After rising a fourth of a percent in initial trade, benchmark indices nosedived in late noon session to end lower by six tenth of a percent, snapping a six-day winning streak. Sensex settled at 72623, down 434 points while Nifty lost 142 points to finish at 22055. Nifty mid-cap and small-cap indices tumbled 1.2% and 1% respectively, extending the losing streak to second straight session. Nifty Media index was the top loser among the sectoral indices, down 4.9%, followed by 1.6% lower IT index. Realty and PSU Bank indices were the top gainers, up 2% and 0.6% respectively.

 

FIIs net bought stocks and index futures worth Rs 285 cr and 627 cr respectively but net sold stock futures worth Rs 280 cr. DIIs were net sellers to the tune of Rs 412 cr.

 

Rupee depreciated 1 paise to end at 82.97/$.

 

OUTLOOK

 

Today morning, Nikkei is up 1.6% and has surpassed the previous record high of 38,915.87 reached in 1989. Shanghai and Hang Seng are up 0.6% and 0.2% respectively. GIFT Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 22325 was the next immediate target and had advised trailing stop-loss in longs to 22000.

 

Nifty, after touching a high of 22249, slipped to end at 22055. The benchmark is set to open near 22100 today.

 

22250, the top made yesterday, is the immediate hurdle, upon crossover of which, 22500 would be next upside target; 22000-21975 is the immediate support zone, upon breach of which, 20 and 34-DMAs, placed around 21800 and 21750 respectively, would be next downside level to eye.

 

For Banknifty, 47736, the 78.6% retracement levels of the 48636-44429 fall, continues to be next upside levels to eye; 46300 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

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