22900 ABOVE 22700; 21800-21700 IS THE IMMEDIATE SUPPORT ZONE

 

22900 ABOVE 22700; 21800-21700 IS THE IMMEDIATE SUPPORT ZONE

 

WORLD MARKETS

 

U.S. indices gained 0.25%-2%, with Nasdaq on the top, as Nvidia led tech stocks higher and slightly weak labor market data gave hope the Federal Reserve might lower interest rates later this year. S & P 500 and Nasdaq rose to a fresh record.

 

Private payroll data from ADP showed hiring slowed to 152,000 jobs last month, far below the 175,000 estimate. ISM nonmanufacturing PMI rose to 53.8 last month from 49.4 in April, beating estimate of 50.8.

 

U.S. 10-year treasury yield fell 6 bps to 4.277%. Dollar index inched up 0.1% to 104.29. Gold rose 1.3% to $2356 per ounce.

 

WTI and Brent crude futures rose 1.1% each to $74.07 and $78.41 a barrel respectively.

 

In Europe, DAX and CAC gained 0.9% each while FTSE rose 0.2%. Euro zone business activity grew for the third consecutive month in May, final estimates of the region’s composite PMI showed. Corresponding data for the U.K. showed business activity also expanded in May, but at a slower pace than in April.

 

AT HOME

 

Sensex and Nifty surged 3.2% and 3.4% respectively, recouping more than half of the mammoth losses suffered yesterday. This was the best percentage gain for Nifty since 1st February 2021. Sensex settled at 74382, up 2303 points while Nifty added 735 points to finish at 22620. Nifty mid-cap and small-cap indices climbed 4.3% and 3.8% respectively. All the NSE sectoral indices ended higher, with Metal and Private Bank indices being the top gainers, up 5.8% and 5.1% respectively.

 

FIIs net sold stocks worth Rs 5656 cr but net bought index futures and stock futures worth Rs 2511 cr and 1891 cr respectively. DIIs were net buyers to the tune of Rs 4555 cr.

 

Rupee appreciated 16 paise to end at 83.37/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.2% and 0.6% respectively while Shanghai is off 0.3%. GIFT Nifty is suggesting around 90 points higher start for our market.

 

In yesterday's report we had said that 21300-21100 was the important support zone while 22700 was the immediate hurdle on the hourly chart.

 

Nifty surged to 22670 before closing at 22620. The benchmark is set to open near 22700 today.

 

22700 is the immediate hurdle on the hourly chart, upon sustained crossover of which, 22900, the 78.6% retracement level of the recent 23338-21281 fall, would be next upside level to eye; 21800-21700 is the immediate support zone.

 

For Banknifty, 50050, the 78.6% retracement level of the recent 51133-46077 fall, is the next upside level to eye; 46450 is immediate support.

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