22795 IS THE NEXT TARGET; 22300-22250 IMMEDIATE SUPPORT ZONE

 

22795 IS THE NEXT TARGET; 22300-22250 IMMEDIATE SUPPORT ZONE

 

WORLD MARKETS

 

U.S. equity benchmark indices gained 0.2% each with the S & P 500 and Nasdaq S&P 500 and the Nasdaq Composite closing at new records.

 

Fed Governor Christopher Waller said he’d like to see more good data on the inflation front before lowering rates.

 

U.S. 10-year treasury yield fell 3 bps to 4.414%. Dollar index was flat at 104.62. Gold fell 0.2% to $2421 per ounce.

 

WTI crude futures fell 0.7% to $79.26 while Brent futures fell 1% to $82.88 a barrel.

 

European markets fell 0.1%-0.7%.

 

AT HOME

 

It was a day of consolidation as Sensex settled marginally in the red at 73953 while Nifty inched up 0.1% to finish at 22529. Nifty mid-cap index rose 0.4% to hit fresh record highs while small-cap index fell 0.4%. Nifty Metal index soared 3.9%, becoming top gainer among the sectoral indices, followed by 1.5% higher PSU Bank index. Private Bank and FMCG indices were the top losers, down 0.6% and 0.4% respectively.

 

FIIs net sold stocks worth Rs 93 cr but net bought index futures and stock futures worth Rs 2015 cr and 1503 cr respectively. DIIs were net sellers to the tune of Rs 153 cr.

 

Rupee appreciated 4 paise to end at 83.30/$.

 

OUTLOOK

 

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

 

In yesterday's report we had said that 22586, the 78.6% retracement level of the recent 22795-21821 fall, continued to be next upside level to eye.

 

Nifty touched a high of 22591 before closing at 22529.

 

22795, the top made on 3rd May, is the next target for Nifty; 22300-22250 is the immediate support zone on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 48644 and 48958, the 50% and 61.8% retracement levels of the recent 49975-47313 fall, are the next upside levels to eye; 47350 is the immediate support.

 

Sun Pharma, Grasim and Powergrid will report their quarterly earnings today.

Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.