23893 CONTINUES TO BE IMMEDIATE SUPPORT; 24550, 24750 ARE UPSIDE HURDLE

 

23893 CONTINUES TO BE IMMEDIATE SUPPORT; 24550, 24750 ARE UPSIDE HURDLE

 

WORLD MARKETS

 

After starting with gains of 1.2%-2%, U.S. indices saw a sustained downward move through the session to end with cuts of 0.6%-1%.

 

U.S. 10-year treasury yield rose 5 bps to 3.943%. Dollar index rose quarter of a percent to 103.19. Gold fell quarter of a percent to $2383 per ounce. Yen fell 1.6% to $146.66 after BOJ Deputy Governor played down the chances of a near-term rate hike.

 

WTI crude futures rose 2.8% to $75.23 while Brent futures rose 2.4% to $78.33 per barrel.

 

European markets gained 1.5%-2.3%.

 

AT HOME

 

Sensex and Nifty gained 1.1% and 1.3% respectively, snapping a 3-day losing streak. Sensex settled at 79468, up 875 points while Nifty added 305 points to finish at 24297. Nifty mid-cap and small-cap indices surged 2.4% and 2.9% respectively, snapping a 4 and 5-session losing streak respectively. All the NSE sectoral indices ended higher with Oil & Gas and Metal indices being the top gainers, up 3.1% and 2.7% respectively.

 

FIIs net sold stocks and index futures worth Rs 3315 cr and 1032 cr respectively but net bought stock futures worth Rs 3054 cr. DIIs were net buyers to the tune of Rs 3801 cr.

 

Rupee ended flat at 83.95/$.

 

OUTLOOK

 

Today morning, Asian markets are down 0.4%-1.2% and GIFT Nifty is suggesting around 170 points lower start for our market.

 

In yesterday's report we had said that 23893, the low made Monday, continues to be immediate support while 24700-24750 continued to be immediate resistance zone.

 

Nifty rose to touch a high of 24337 before closing at 24297 and is set to open around 24150 today.

 

23893, the low made Monday, continues to be immediate support, upon breach of which, 23627, the 38.2% retracement level of the upmove seen since election result day bottom, would be the next downside level to eye; 20-DMA, placed around 24550, is the immediate hurdle, upon crossover of which, 24700-24750 would be next immediate resistance zone.

 

For Banknifty, 48860, the 61.8% retracement levels of the upmove seen since election result day bottom, is the next downside levels to eye; 51000 is immediate hurdle.

 

RBI's monetary policy committee is expected to leave repo rate unchanged for the eighth consecutive time when the decision is announced today. Monetary policy stance is also expected to be kept unchanged as "withdrawal of accommodation".

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