NIFTY REBOUNDS FROM 23350 SUPPORT

 

NIFTY REBOUNDS FROM 23350 SUPPORT

 

WORLD MARKETS

 

Dow rose 0.7% as banks and energy sock rose but S & P 500 and Nasdaq slipped 0.3% and 1.1% respectively as technology stocks fell. It was the worst day since April for the Nasdaq.

 

Nvidia fell about 6.7%, adding to its 4% decline last week that snapped an eight-week winning streak.

 

U.S. 10-year treasury yield fell 2 bps to 4.234%. Dollar index fell a third of a percent to 105.48. Gold rose half a percent to $2333 per ounce.

 

WTI crude futures rose 1.1% to $81.63 while Brent futures rose 0.9% to $86.01 a barrel.

 

European markets gained 0.5%-1.6%. Data from Ifo institute showed Germany's business sentiment had “deteriorated” in June.

 

AT HOME

 

After starting lower by six tenth of a percent, benchmark indices recouped all the losses and some more through the session to end higher by a fifth of a percent each. Sensex settled at 77341, up 131 points while Nifty added 37 points to finish at 23537. Nifty mid-cap index rose 0.3% to post record close but small-cap index fell 0.1%. Nifty Auto and Consumer Durables indices were the top gainers among the sectoral indices, up 0.9% and 0.8% respectively while Media and PSU Bank indices were the top losers, down 1.9% and 0.7% respectively.

 

FIIs net sold stocks worth Rs 654 cr but net bought index futures and stock futures worth Rs 1776 cr and 3264 cr respectively. DIIs were net sellers to the tune of Rs 820 cr.

 

Rupee appreciated 7 paise to end at 83.46/$.

 

After logging a deficit for 10-conecutive quarters, India's current account swung into surplus of $5.7 bn in Q4, which is 0.6% of India's GDP. For the full financial year, CAD narrowed to $23.2 bn from $67 bn in FY23. However, FDI flows slowed to $2 bn in FY24 from $6.4 bn in FY23.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 0.9% and 0.5% respectively while Shanghai is marginally higher. GIFT Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 23350, around which an erstwhile resistance line adjoining tops made since January is placed, was the immediate support to eye.

 

Nifty, after touching a low of 23350, rebounded to end at 23537.

 

23350, around which an erstwhile resistance line adjoining tops made since January is placed, continues to be immediate support to eye, upon breach of which, 23206, the low made on 11th June, would be next downside level to eye; 23660, around which Nifty made a double top last week, is the immediate hurdle, upon crossover of which, 24000 would be next upside target.

 

For Banknifty, 51957, the top made last week, coincided with a rising trendline adjoining tops made since February and hence is the immediate hurdle, upon crossover of which, 52700 would be next target. 50700 is the immediate support on the hourly chart, upon breach of which, 49900, the low made last week, would be next downside level to eye.

Investment in securities market is subject to market risk.

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