24650-24700 IS THE NEXT TARGET AREA; 24200-24150 IS THE SUPPORT ZONE

 

24650-24700 IS THE NEXT TARGET AREA; 24200-24150 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

Dow fell 0.1% while S & P 500 and Nasdaq inched up 0.1% each after Fed Chair Powell warned about the dangers of keeping interest rates high for too long.

 

“Reducing policy restraint too late or too little could unduly weaken economic activity and employment,” Powell said in prepared remarks. “More good data would strengthen our confidence that inflation is moving sustainably toward 2 percent.”

 

U.S. 10-year treasury yield rose 2 bps to 4.30%. Dollar index inched up 0.1% to 105.12. Gold rose 0.2% to $2363 per ounce.

 

WTI crude futures fell 1.1% to $81.41 while Brent futures fell 1.3% to $84.66 per barrel.

 

European markets fell 0.7%-1.6% as markets weighed up political uncertainty in France after Sunday’s election result.

 

AT HOME

 

Benchmark indices climbed half a percent each to hit fresh record highs. Sensex settled at 80351, up 391 points while Nifty added 112 points to finish at 24433. Nifty mid-cap and small-cap indices rose 0.3% each. Except 0.2% lower IT and Oil & Gas indices, all the NSE sectoral indices ended higher, with Auto index on the top, up 2.2%, followed by 1.7% higher Consumer Durables index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 314 cr, 498 cr and 1246 cr respectively. DIIs were net buyers to the tune of Rs 1416 cr.

 

 

Rupee ended flat at 83.49/$.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 0.8% and 0.1% respectively while Shanghai is down a third of a percent. GIFT Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 24401, the top made last week, continued to be immediate hurdle, upon crossover of which, 24650-24700 would be next target area while 24100 continued to be immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged to touch a high of 24443 before closing at 24433.

 

24650-24700 is the next target area for Nifty; 24200-24150 is the immediate support zone, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 52300-52200 is the immediate support zone, upon breach of which, 20-DMA, placed around 51800, would be next downside level to eye; 53300-53350 is the immediate resistance zone.

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