24300, 24400 ARE NEXT UPSIDE LEVELS; 23950 IMMEDIATE SUPPORT

 

24300, 24400 ARE NEXT UPSIDE LEVELS; 23950 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 0.4%-0.8% with both the Nasdaq Composite and the S&P 500 closing at new record highs, after Fed Chair Powell noted progress on inflation, but reiterated patience on cutting rates.

 

Job openings, a measure of labor demand, rose 221,000 to 8.140 million in May, according to the JOLTS report.

 

U.S. 10-year treasury yield fell 3 bps to 4.434%. Dollar index fell 0.2% to 105.67. Gold fell 0.1% to $2329 per ounce.

 

WTI crude futures fell 0.7% to $82.81 while Brent futures fell 0.4% to $86.24 a barrel.

 

European markets fell 0.3%-1.3%. Headline inflation in the euro area dipped to 2.5% in June, in line with the expectation. However, the closely watched figures for core and services inflation remained stubbornly high, holding at 2.9% and 4.1%, respectively.

 

AT HOME

 

After making a fresh record highs in the initial trade, benchmark indices slipped to end marginally in the red. Sensex settled at 79441, down 35 points while Nifty lost 18 points to finish at 24123. Nifty mid-cap and small-cap indices fell 0.8% and 0.4% respectively. Nifty FMCG, Financial Services, Auto and Bank indices, all fell 0.8% each, becoming top losers among the sectoral indices. IT and Media indices were the top gainers, up 1.2% and 1% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2000 cr, 237 cr and 5071 cr respectively. DIIs were net buyers to the tune of Rs 648 cr.

 

Rupee depreciated 7 paise to end at 83.51/$.

 

HDFC Bank's June shareholding pattern revealed that FII holding has fallen below 55%, creating a room for increase in the MSCI weightage, which might lead to inflow of $3-4 bn in the stock.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.7% and 0.4% respectively while Shanghai is off 0.4%. GIFT Nifty is suggesting around 120 points gap-up start for our market.

 

In yesterday's report we had said that 24250-24300 was the next target zone for Nifty and that 23900 was the immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 24236, slipped to end at 24123. The benchmark is set to open above 24200 today.

 

24300, followed by 24400, are the next target upside targets for Nifty; 23950 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 52000 continues to be immediate support on the hourly chart, upon breach of which, 51138, the low made last week, would be next downside level to eye. On the way up, 53180, the top made last week, is the immediate hurdle, upon crossover of which, 54100 would be next upside level to eye.

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