23800 CONTINUES TO BE NEXT MAJOR TARGET; 22750-22700 IS THE SUPPORT ZONE

 

23800 CONTINUES TO BE NEXT MAJOR TARGET; 22750-22700 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

U.S. indices gained 0.2%-0.4%, with The S&P 500 and Nasdaq Composite closing at fresh records.

 

U.S. 10-year treasury yield rose 4 bps to 4.471%. Dollar index rose 0.2% to 105.10. Gold rose 0.7% to $2311 per ounce.

 

WTI crude futures rose 2.9% to $77.74 while Brent futures rose 2.5% to $81.63 a barrel.

 

The euro dropped 0.4% against the dollar, hit by political uncertainty after gains by the far right in voting for the European Parliament on Sunday prompted a bruised French President Emmanuel Macron to call a snap national election.

 

In Europe, FTSE and DAX fell 0.2% and 0.3% respectively while CAC tumbled 1.4%.

 

AT HOME

 

After rising half a percent, benchmark indices slipped in late noon trade to end modestly lower. Sensex settled at 76490, down 203 points while Nifty lost 31 points to finish at 23259. Nifty mid-cap index ended marginally in the green while small-cap index climbed 1.5%. Nifty Media and Realty indices were the top gainers among the sectoral indices, up 1.9% and 1.3% respectively whereas IT and Metal indices were the top losers, down 1.8% and 0.4% respectively.

 

FIIs net bought stocks and index futures worth Rs 2572 cr and 3064 cr respectively but net sold stock futures worth Rs 5399 cr. DIIs were net buyers to the tune of Rs 2765 cr.

 

Rupee depreciated 13 paise to end at 83.50/$.

 

New Modi government retained old Ministers with Home, Defence, Finance and External Affairs ministries being retained by Amit Shah, Rajnath Singh, Nirmala Sitharaman and S. Jayshankar respectively. Shivrajsingh Chauhan is new agriculture minister while Mahoharlal Khattar got power portfolio. J.P. Nadda is the new health minister.

 

New Cabinet approved expanded the affordable housing scheme by approving financial assistance for building 3 cr houses in rural and urban areas.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are down 1.8% and 1% respectively while Nikkei is up 0.4%. GIFT Nifty is suggesting around 35 points higher start for our market.

 

In yesterday's report we had said that 23338, the top made last week, was the immediate hurdle, upon crossover of which, 23800 would be next major target to eye while 22700 was the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a high of 23412, slipped to end at 23259.

 

23800 continues to be next major target for Nifty; 22750-22700 is the immediate support zone, 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.

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