23125 NEXT; TRAIL STOP-LOSS TO 22550

 

23125 NEXT; TRAIL STOP-LOSS TO 22550

 

WORLD MARKETS

 

U.S. indices fell 0.4%-1.5%, with the Dow Jones Industrial Average registering its worst day of 2024, as strong economic data added to concerns that the Federal Reserve will not lower interest rates soon.

 

Services and manufacturing gauges for May both were higher-than-expected and showed expansion in both sectors, according to purchase manager surveys from S&P Global.  Weekly jobless claims totaled 215000, down 8,000 from the previous period’s upwardly revised level, and also lower than the expected 220,000 mark.

 

Nvidia surged 9.3% and surged past $1,000, after posting stronger-than-expected quarterly results and announcing a 10-for-1 stock split.

 

U.S. 10-year treasury yield rose 5 bps to 4.477%. Dollar index inched up 0.1% to 105.05. Gold nosedived 2% to $2329 per ounce.

 

WTI crude futures fell 0.9% to $76.87 while Brent futures fell 0.7% to $81.36 a barrel.

 

In Europe, FTSE fell 0.4% while DAX and CAC inched up 0.1% each.

 

AT HOME

 

Benchmark indices surged 1.6% each and hit fresh record highs. Sensex settled at 75418, up 1197 points while Nifty added 370 points to finish at 22967. Nifty mid-cap and small-cap indices gained 0.5% and 0.2% respectively. Except 0.8% and 0.5% lower Healthcare and Pharma indices respectively, all the NSE sectoral indices ended higher, with Auto and Bank indices on the top, up 2.2% and 2.1% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 4671 cr, 7216 cr and 9550 cr respectively. DIIs were net buyers to the tune of Rs 147 cr.

 

OUTLOOK

 

Japan’s core inflation — which strips out fresh food and energy — eased to 2.2% from 2.6% in March, in line with expectations. Headline inflation slowed to 2.5%, down from March’s 2.7% figure.

 

Today morning, Shanghai is up 0.4% while Nikkei and Hang Seng are down 1.3% and 0.3% respectively. GIFT Nifty is suggesting around 40 points lower start for our market.

 

In yesterday's report we had said that 22795, the top made on 3rd May, continued to be next target for Nifty while 22400 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged all the way to 22993 before closing at 22967.

 

23125, around which a rising trendline adjoining tops made in recent months is placed, is the next upside level to eye; 22550 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 49334, the 78.6% retracement levels of the recent 49975-46983 fall, is the next upside levels to eye; 48000 is the immediate support.

 

Hindalco and NTPC 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.