23800 ABOVE 23338; 22700 IS IMMEDIATE SUPPORT

 

23800 ABOVE 23338; 22700 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices fell 0.1%-0.2% while treasury yield surged on Friday following a stronger-than-expected jobs report.

 

Nonfarm payrolls increased by 272,000 in May, above the 190,000 estimate and April’s 175,000 gain. Average hourly wages increased 0.4% last month and ticked up 4.1% from a year ago. However, the unemployment rate ticked higher to 4%.

 

U.S. 10-year treasury yield surged 15 bps to 4.435%. Dollar index jumped 0.8% to 104.93. Gold plunged 3.4% to $2294 per ounce.

 

WTI crude futures fell 3 cents to $75.53 while Brent futures fell 25 cents to $78.62 a barrel.

 

European markets fell half a percent each. Data showed Germany is now set to expand by 0.3%, below the 0.4% previous estimated, while inflation is likely to tick up slightly.

 

China’s May exports beat expectations, climbing 7.6% against the 6% forecast and vastly higher than the 1.5% rise seen in April. Imports climbed 1.8% year on year, missing the 4.2% forecast.

 

AT HOME

 

Sensex and Nifty soared 2.2% and 2% respectively, extending the winning streak to third straight session and cumulatively recouping all the losses suffered on the election result day. Sensex settled at 76693, up 1618 points while Nifty added 468 points to finish at 23290. Nifty mid-cap and small-cap indices gained 1.5% and 2.3% respectively. All the NSE sectoral indices ended higher, with IT and Auto indices on the top, up 3.4% and 2.6% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 4391 cr, 5663 cr and 4508 cr respectively. DIIs were net sellers to the tune of Rs 1290 cr.

 

Rupee appreciated 10 paise to end at 83.37/$.

 

For the week, Sensex surged 3.7% for its best week since July 2022 while Nifty climbed 3.4% for it's best week since 8th December 2023.

 

Prime Minister Modi took oath along with 72 ministers as NDA government swore for it's third term. New cabinet has 30 ministers including 5 berths for NDA allies. Portfolio allocation however is still awaited.

 

OUTLOOK

 

Markets in China and Hong Kong are shut today for a holiday. Nikkei is up half a percent. GIFT Nifty is suggesting around 50 points lower start for our market.

 

In Friday's report we had said that 22910, the top made Thursday, was the immediate hurdle, upon crossover of it, 23338, the top made on Monday, would be next upside level to eye.

 

Nifty crossed 22910 and surged all the way to 23320 before closing at 23290.

 

23338, the top made last week, is the immediate hurdle, upon crossover of which, 23800 would be next major target to eye; 22700 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 51133, the top made last week, is the immediate upside target, upon crossover of which, 51500-51600, where a rising trendline adjoining recent tops is placed, would be the next upside level to eye; 48900 is the immediate support on the hourly chart.

Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.