21850 IS NEXT SUPPORT; 22300 IMMEDIATE HURDLE

 

21850 IS NEXT SUPPORT; 22300 IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices gained 0.3%-0.8%, with the Dow rising for a seventh straight session, as new jobless claims data rekindled hope for Federal Reserve rate cuts later this year.

 

Weekly initial claims for state unemployment benefits increased 22,000 to a seasonally adjusted 231,000, the highest level since the end of last August and above the 215,000 expected.

 

U.S. 10-year treasury yield fell 2 bps to 4.457%. Dollar index fell 0.3% to 105.20. Gold jumped 1.6% to $2346 per ounce.

 

Brent futures rose 0.4% to settle at $83.88 a barrel, while WTI crude rose 0.3% to $79.26.

 

European markets rose 0.3%-1%. The BoE’s Monetary Policy Committee voted 7-2 to keep the central bank’s key policy rate at a 16-year high of 5.25%.

 

AT HOME

 

Sensex and Nifty nosedived 1.45% and 1.55% respectively, posting their worst cut since 23rd January and 17th January respectively. Sensex settled at 72404, down 1062 points while Nifty lost 345 points to finish at 21957. Both posted their lowest close since 20th March. Nifty mid-cap and small-cap indices tumbled 1.8% and 2.8% respectively. Except 0.8% higher Auto index, all the NSE sectoral indices ended lower, with Oil & Gas and Metal indices being the top losers, down 3.2% and 2.9% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 6995 cr, 3882 cr and 3085 cr respectively. DIIs were net buyers to the tune of Rs 5643 cr.

 

Rupee appreciated 1 paise to end at 83.51/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.8% each while Shanghai is down 0.4%. GIFT Nifty is suggesting around 60

 

In yesterday's report we had said that 22100 continued to be next downside level to eye for Nifty while 22500 was the immediate resistance, with the stop-loss of which, trading shorts can be held on to.

 

Nifty plunged all the way to 21932 before closing at 21957.

 

21850, around which a trendline adjoining bottoms made in March and April is placed, is the next downside level to eye; 22300 is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 47300 is the next downside level to eye; 48400 is immediate hurdle.

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