23800-23850 IS THE NEXT TARGET ZONE; 23400-23350 IMMEDIATE SUPPORT AREA

 

23800-23850 IS THE NEXT TARGET ZONE; 23400-23350 IMMEDIATE SUPPORT AREA

 

WORLD MARKETS

 

U.S. markets were closed yesterday for the Juneteenth holiday.

 

In Europe, FTSE rose 0.2% while DAX and CAC fell 0.4% and 0.8% respectively. U.K. inflation data for May was in line with expectations at 2.0%, hitting the Bank of England’s target ahead of its policy rate decision on Thursday.

 

Dollar index was flat at 105.22. Gold too was unchanged at $2328 per ounce.

 

Brent crude futures slipped 6 cents to $85.33 a barrel while WTI crude was down 8 cents at $81.57 per barrel.

 

Minutes of the Bank of Japan’s April policy meeting showed policymakers debated the impact a weak yen could have on prices. BOJ Governor Kazuo Ueda said on Tuesday the central bank could raise interest rates next month depending on economic data available at the time.

 

AT HOME

 

After rising nearly half a percent, benchmark indices gave away all the gains in late noon plunge to end flat to modestly lower. Sensex settled at 77336, up 36 points while Nifty lost 42 points to finish at 23516. Nifty mid-cap and small-cap indices fell 1% and 0.5% respectively, snapping a nine-session winning streak. Nifty Bank and Financial Services indices climbed 1.9% and 1.6% respectively, becoming top gainers among the sectoral indices while Realty and Consumer Durables indices were the top losers, down 2.8% and 2% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 7908 cr, 4356 cr and 943 cr respectively. DIIs were net buyers to the tune of Rs 7108 cr.

 

Rupee depreciated 4 paise to end at 83.45/$.

 

OUTLOOK

 

Today morning, Nikkei is down 0.7% while Hang Seng and Shanghai are little changed. GIFT Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 23800 was the next upside target for Nifty and had advised trailing stop-loss in longs to 23400.

 

Nifty, after touching a high of 23664, slipped to end at 23516.

 

23800-23850 is the next upside target to eye for Nifty; 23400-23350 is the immediate support zone on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 51957, the top made yesterday, coincided with a trendline adjoining rising tops made since February and hence is the immediate hurdle, above which, 52700 would be next target; 50300 is the immediate support, with the stop-loss of which, trading longs can be held on to.

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