23338 ABOVE 22910; 22500 IMMEDIATE SUPPORT

 

23338 ABOVE 22910; 22500 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow inched up 0.2% while S & P 500 and Nasdaq ended marginally in the red ahead of Friday’s nonfarm payrolls report for May.

 

The European Central Bank announced its first interest rate cut since 2019, even as inflationary pressures in the eurozone have lingered. It takes the central bank’s key rate to 3.75%, down from a record 4% where it has been since September 2023.

 

U.S. 10-year treasury yield inched up 1 bps to 4.289%. Dollar index fell 0.2% to 104.09. Gold rose 0.9% to $2375 per ounce.

 

WTI crude futures rose 2% to $75.55 while Brent futures rose 1.9% to $79.87 a barrel.

 

European markets gained 0.4%-1%.

 

AT HOME

 

Benchmark indices climbed 0.9% each, extending yesterday's mammoth rebound and cumulatively recouping two third of the losses suffered on the election result day. Sensex settled at 75074, up 692 points while Nifty added 201 points to finish at 22821. Nifty mid-cap and small-cap indices surged 2.2% and 3.3% respectively. Nifty Realty and Media indices were the top gainers among the sectoral indices, up 4.7% and 3.7% respectively whereas FMCG and Pharma indices were the top losers, down 0.3% and 0.2% respectively.

 

FIIs net sold stocks and stock futures worth Rs 6868 cr and 4546 cr respectively but net bought index futures worth Rs 1566 cr. DIIs were net buyers to the tune of Rs 3718 cr.

 

Rupee depreciated 10 paise to end at 83.47/$.

 

OUTLOOK

 

Today morning, Shanghai and Hang Seng are up 0.4% and 0.2% respectively while Nikkei is off 0.2%. GIFT Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 22700 was the immediate hurdle on the hourly chart, upon crossover of which, 22900, the 78.6% retracement level of the recent 23338-21281 fall, would be next upside level to eye while 21800-21700 was the immediate support zone.

 

Nifty crossed 22700 and surged all the way to 22910 before closing at 22821.

 

22910, the top made yesterday, roughly coincided with 78.6% retracement level of the recent 23338-21281 fall. Upon crossover of it, 23338, the top made on Monday, would be next upside level to eye; 34-DMA, placed around 22500, would provide immediate support.

 

For Banknifty, 50050, the 78.6% retracement level of the recent 51133-46077 fall, is the next upside level to eye; 34-DMA, placed around 48500, would provide immediate support.

 

RBI's Monetary Policy Committee is expected to leave interest rate and policy stance unchanged when it announces it's decision today.

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