22100 IS NEXT SUPPORT; 22550-22600 IS THE RESISTANCE ZONE

 

22100 IS NEXT SUPPORT; 22550-22600 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

Dow and S & P 500 inched up 0.1% each while Nasdaq eased 0.1%.

 

Disney shares fell 9.5% after it posted a slight revenue miss but exceeded quarterly earnings expectations.

 

Minneapolis Federal Reserve President Neel Kashkari said that stalled inflation, kept higher in part by housing market strength means the central bank will need to hold borrowing costs steady for an “extended period,” and possibly all year.

 

U.S. 10-year treasury yield fell 4 bps to 4.459%. Dollar index rose 0.3% to 105.38. Gold fell half a percent to $2314 per ounce.

 

WTI crude futures fell 0.1% to $78.38 a barrel while Brent futures fell 0.2% to $83.16 a barrel.

 

European markets gained 0.8%-1.5%.

 

AT HOME

 

Sensex and Nifty fell 0.5% and 0.6% respectively, extending the losing streak to third consecutive day and closing at the lowest level after 19th April. Sensex settled at 73511, down 383 points while Nifty lost 140 points to finish at 22302. Nifty mid-cap and small-cap indices nosedived 2% and 1.9% respectively, their biggest cut since 13th March. Except 2% and 0.8% higher IT FMCG and IT indices respectively, all the NSE sectoral indices ended lower with Realty and Metal indices being the top losers, down 3.5% and 2.4% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 3669 cr, 1772 cr and 137 cr respectively. DIIs were net buyers to the tune of Rs 2304 cr.

 

Rupee depreciated 2 paise to end at 83.51/$.

 

Dr Reddy's fourth quarter revenue and margin missed estimate led by fall in U.S. and Russian sales.

 

OUTLOOK

 

Today morning, Hang Seng is up 0.6% while Nikkei and Shanghai are down 0.9% and 0.1% respectively. GIFT Nifty is suggesting a modestly higher start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 22320, continued to be immediate support while 22775-22800 continued to be immediate resistance zone.

 

Nifty plunged to 22232 before closing at 22302.

 

22100 is the next downside level to eye for Nifty; 22550-22600 is the immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 34-DMA, placed around 47800, is the next support; 49000 is immediate hurdle.

 

L & T, Hero Motocorp and TVS Motors will report their quarterly earnings today.

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