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

 

Dow rose 0.8% while S & P 500 and Nasdaq fell 0.2% and 0.8% respectively

 

Initial jobless claims data showed a rise from a week ago, while housing starts and permits fell more than expected last month. A reading of the Philadelphia Fed Manufacturing Index also came in below estimates.

 

U.S. 10-year treasury yield rose 4 bps to 4.263%. Dollar index rose 0.4% to 105.65. Gold gained 1.4% to $2360 per ounce.

 

WTI and Brent crude futures gained 0.7% each to reach $82.17 and $85.71 a barrel respectively.

 

European markets gained 0.8%-1.4%. The Bank of England on kept interest rates unchanged at a 16-year high of 5.25%. The Swiss National Bank lowered its policy rate by 0.25 percentage points to 1.25%. Norway’s central bank held its policy interest rate at 4.5%, and said the rate would continue to be kept at a 16-year high till the end of 2024, providing the economy evolves as currently envisaged.

 

China kept its one- and five-year loan prime rates unchanged.

 

AT HOME

 

Benchmark indices rose a fifth of a percent each to post highest ever close. Sensex settled at 77478, up 141 points while Nifty added 51 points to finish at 23567. Nifty mid-cap and small-cap indices gained 1% and 0.6% respectively, both recouping yesterday's losses and small-cap index posting highest ever close. Nifty Realty and Metal indices climbed 2% and 1.8% respectively, becoming top gainers among the sectoral indices while Pharma and Auto indices were the top losers, down 0.5% and 0.4% respectively.

 

FIIs net bought stocks and index futures worth Rs 415 cr and 1740 cr respectively but net sold stock futures worth Rs 3175 cr. DIIs were net sellers to the tune of Rs 326 cr.

 

Rupee depreciated 20 paise to end at 83.65/$.

 

OUTLOOK

 

Today morning, Shanghai is up 0.2%, Nikkei is flat while Hang Seng is down 0.8%. GIFT Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 23800-23850 was the next upside target area for Nifty while 23400-233350 was the immediate support zone, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 23624, closed at 23567.

 

23800-23850 continues to be next target area for Nifty; 23400-23350 continues to be 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 on Wednesday, 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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