22750 CONTINUES TO BE IMMEDIATE SUPPORT; 23110 IMMEDIATE HURDLE

 

22750 CONTINUES TO BE IMMEDIATE SUPPORT; 23110 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow fell 0.6%, S & P 500 was little changed while Nasdaq rose 0.6% to a record high and closed above the 17,000 threshold for the first time, fueled by a nearly 7% jump in Nvidia.

 

Minneapolis Fed President Neel Kashkari said he wants to see “many more months” of data pointing to easing inflation before cutting rates. He also said he would not rule out further rate hikes if price pressures tick up again.

 

Conference Board data showed consumer confidence unexpectedly increased in May after deteriorating for three straight months. However, expectations for inflation also climbed.

 

U.S. 10-year treasury yield climbed 9 bps to 4.554% following a poor auction on the five-year note. Dollar index was flat at 104.61. Gold rose 0.4% to $2360 per ounce.

 

WTI crude futures rose 2.7% to $79.83 a barrel while Brent futures rose 1.4% to $84.22.

 

European markets fell 0.3%-0.9%.

 

AT HOME

 

Sensex and Nifty fell 0.3% and 0.2% respectively, extending the losing streak to second straight session. Sensex settled at 75170, down 220 points while Nifty lost 44 points to finish at 22888. Nifty mid-cap and small-cap tumbled 0.9% each. Nifty Realty and PSU Bank indices were the top losers among the sectoral indices, down 2.2% and 1.3% respectively whereas Pharma and Healthcare indices were the top gainers, up 0.5% and 0.4% respectively.

 

FIIs net bought stocks and stock futures worth Rs 66 cr and 4681 cr respectively but net sold index futures worth Rs 1962 cr. DIIs were net buyers to the tune of Rs 3232 cr.

 

Rupee depreciated 5 paise to end at 83.18/$.

 

OUTLOOK

 

Today morning, Shanghai is up 0.4% but Hang Seng and Nikkei are down 1.1% and 0.4% respectively. GIFT Nifty is suggesting nearly 100 points lower start for our market.

 

In yesterday's report we had said that 23100-23150, where a rising trendline adjoining recent monthly tops is placed, is the immediate resistance zone while 22750 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty fell to 22858 before closing at 22888 and is set to open near 22800 today.

 

22750 continues to be immediate support on the hourly chart, upon breach of which, 34-DMA, placed around 22460, would be next downside level to eye; 23110, the top made on Monday, is the immediate hurdle.

 

For Banknifty, 49975, the top made in April, is the next upside levels to eye; 48600-48500 is the immediate support zone on the hourly chart, with the stop-loss of which, trading longs can be held on to.

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