22350 IS NEXT TARGET; 22100 IMMEDIATE SUPPORT

 

22350 IS NEXT TARGET; 22100 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 0.3%-0.8% with the Nasdaq Composite hitting a fresh record closing high.

 

The producer price index reading for April came in at 0.5%, higher than the 0.3% expectation. March reading was revised down to show a 0.1% decline.

 

Fed Chair Powell said that the U.S. central bank will need to practice patience in the face of higher-than-expected inflation.

 

U.S. 10-year treasury yield fell 4 bps to 4.443%. Dollar index fell 0.2% to 105.02. Gold rose 0.9% to $2358 per ounce.

 

Brent crude futures settled down 1.2% at $82.38 a barrel and WTI futures fell 1.4% to $78.02 a barrel.

 

In Europe, FTSE and CAC rose 0.2% each while DAX fell 0.1%.

 

AT HOME

 

Benchmark indices gained half a percent each, extending the winning streak to third straight session. Sensex settled at 73104, up 328 points while Nifty added 114 points to finish at 22217. Nifty mid-cap and small-cap indices surged 1% and 2% respectively, with the later posting it's best day in a month and half. Nifty Metal and Auto indices surged 2.8% and 1.8% respectively, becoming top gainer among the sectoral indices while FMCG and Pharma indices were the top losers, down 0.5% and 0.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 4066 cr, 2364 cr and 1169 cr respectively. DIIs were net buyers to the tune of Rs 3528 cr.

 

Rupee appreciated 2 paise to end at 83.51/$.

 

India’s wholesale inflation rose to a 13-month high of 1.26% in April from 0.53% in March.

 

OUTLOOK

 

Markets in Hang Seng is shut today. Nikkei is up half a percent while Shanghai is down 0.3%. GIFT Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 21821, the low made Monday, was the important support to eye while 22200 was the immediate hurdle on the hourly chart.

 

Nifty rose to touch a high 22270 before closing at 22217.

 

34-DMA, placed around 22350, is the next upside level to eye, above which, 22422 and 22586, the 61.8% and 78.6% retracement levels of the recent 22795-21821 fall, would be next upside levels to eye; 22100 is the immediate support on the hourly chart.

 

For Banknifty, 48000 continues to be immediate hurdle, upon crossover of which, 48644 and 48958, the 50% and 61.8% retracement levels of the recent 49975-47313 fall, would be next upside levels to eye; 46983, the low made on Monday, is the immediate support.

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