23600, 23800 ARE NEXT UPSIDE TARGETS; 22800 IMMEDIATE SUPPORT

 

23600, 23800 ARE NEXT UPSIDE TARGETS; 22800 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow fell 0.3% while S & P 500 and Nasdaq rose 0.1% and 0.6% respectively. Treasury yields and the dollar slipped following weak economic data.

 

Institute for Supply Management’s (ISM) manufacturing PMI fell to 48.7 in May, from 49.2 in April, sliding as well from an 18-month high of 50.3 seen in March. U.S. construction spending slid unexpectedly for a second consecutive month in April, decreasing by 0.1% after a 0.2% decline in March.

 

U.S. 10-year treasury yield fell 11 bps to 4.392%. Dollar index fell 0.6% to 104.04. Gold rose 1% to $2350 per ounce.

 

Oil fell more than 3% as OPEC+ announced plans to phase out voluntary production cuts totaling 2.2 million barrels per day. WTI crude futures fell 3.6% to $74.22 while Brent futures fell 3.4% to $78.36 a barrel.

 

In Europe, FTSE fell 0.2% while DAX and CAC rose 0.6% and 0.1% respectively. Euro zone manufacturing activity rose to a 14-month high in May, the latest HCOB purchasing managers index showed.

 

AT HOME

 

Sensex and Nifty jumped 3.4% and 3.25% respectively, hitting fresh record highs and posting their best performance since 1st February 2021. Sensex settled at 76468, up 2507 points while Nifty added 733 points to finish at 23263. Nifty mid-cap and small-cap indices climbed 3.2% and 2.4% respectively. All the NSE sectoral indices ended in green, with PSU Bank and Oil & Gas indices on the top, up 8.4% and 6.8% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 6851 cr, 7806 cr and 5968 cr respectively. DIIs were net buyers to the tune of Rs 1914 cr.

 

Rupee appreciated 32 paise to end at 83.14/$.

 

OUTLOOK

 

Today morning, Hang Seng is up 0.2% while Nikkei and Shanghai are down 0.5% and 0.3% respectively. GIFT Nifty is suggesting around 150 points higher start for our market.

 

In yesterday's report we had said that 23200, around which a rising trendline adjoining recent monthly tops was placed, was the next upside level to eye, upon crossover of which, 23800 would be next major target.

 

Nifty surged to 23338 before closing at 23263. The benchmark is set to open above 23350 today.

 

23600, followed by 23800 are the next upside levels to eye; 22800 is the immediate support on the hourly chart.

 

For Banknifty, 51900, followed by 53000 are the next upside levels to eye; 49300 is immediate support.

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