22586 IS THE NEXT TARGET; 22054 IMMEDIATE SUPPORT

 

22586 IS THE NEXT TARGET; 22054 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices fell 0.1%-0.3%.

 

U.S. import prices increased 0.9% last month, raising concerns the Federal Reserve’s fight to tame inflation is not yet done. Initial claims for state unemployment benefits dropped 10,000 to 222,000 for the week ended May 11. The expected figure was 220,000.

 

U.S. 10-year treasury yield rose 3 bps to 4.375%. Dollar index rose0.2% to 104.49. Gold fell 0.4% to $2376 per ounce.

 

WTI crude futures rose 0.8% to $79.23 while Brent futures rose 0.6% to $83.27 a barrel.

 

In Europe, FTSE eased 0.1% while DAX and CAC ell 0.7% and 0.6% respectively.

 

AT HOME

 

Benchmark indices ended higher by 0.9% each after wild intraday swings. Sensex settled at 73663, up 676 points while Nifty added 203 points to finish at 22403. Nifty mid-cap and small-cap indices gained 0.9% and 0.8% respectively, with the former posting highest ever close. Except 0.9%lower PSU Bank index, all the NSE sectoral indices ended higher, with Consumer Durables and IT indices on the top, up 1.7% each.

 

FIIs net sold stocks, index futures and stock futures worth Rs 777 cr, 741 cr and 2674 respectively. DIIs were net buyers to the tune of Rs 2128 cr.

 

Rupee ended flat at 83.50/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.9% and 0.3% respectively while Nikkei is down 0.4%. GIFT Nifty is suggesting around 25 points higher start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 22360, continued to be 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. We had also said that 22100 continued to be immediate support on the hourly chart.

 

Nifty, after touching a low of 22054, reversed and surged all the way to 22432 before closing at 22403.

 

22586, the 78.6% retracement levels of the recent 22795-21821 fall, is the next upside levels to eye; 22054, the low made yesterday, is the immediate support.

 

For Banknifty, 48050 is the 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.

 

JSW Steel will report its quarterly earnings today.

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