US, EUROPEAN EQUITIES CLIMB ON GREEK DEAL HOPES; NIFTY HOLDS 8300 SUPPORT ON CLOSING BASIS
Nasdaq surged 1.5% while Dow and S & P 500 gained 0.7% and 0.9% respectively yesterday, with the tech-heavy Nasdaq logging a record high close, on the back of encouraging Greece headlines and a slight pause in the dollar.
Greek Prime Minister Alexis Tsipras yesterday said the negotiations are on the "final stretch" towards a positive deal, Reuters reported. A European official said in a Bloomberg report that "we are still working toward an agreement" and that no accord was reached.
Later in the day, German Finance Minister Wolfgang Schaeuble said there was not much progress in the Greek debt talks and he was surprised by the upbeat tone from some Greek government officials, according to an ARD television interview cited by Reuters.
European markets climbed 1.2%-2.3% .
Dollar index, after touching a high of 97.77, eased to end at 97.30. Nymex oill fell 52 cents or 1% to $57.50 a barrel.
After falling nearly three fourth of a percent in the initial trade, benchmark indices recouped all the lost ground through the session to end little changed. Sensex settled at 27565, up 33 points while Nifty lost 5 points to finish at 8335. BSE mid-cap index gained 0.1% while the small-cap index lost 0.03%. BSE Auto and IT indices plunged 2.1% and 1.9% respectively, becoming top losers among the sectoral indices while Bankex and Oil & Gas indices gained 1.2% and 1% respectively.
FIIs net sold stocks, index futures and stock futures worth Rs 935 cr, 96 cr and 538 cr respectively. DIIs were net buyers to the tune of Rs 594 cr.
Rupee depreciated 3 paise to end at 64.01/$.
Today morning Asian markets are trading mixed SGX Nifty is suggesting about 15 points higher opening for our market.
In yesterday's report we had mentioned that 8320-8300 is the immediate support area, as 200 DMA as well as a trendline adjoining recent bottoms were placed around 8320 while 8300 was the 38.2% retracement level of the recent 7997-8490 upmove.
Nifty, after falling to 8278 in the initial trade, bounced back to end at 8335, holding 8320-8300 support on closing basis.
Traders would do well to wait for the close below 8300 for taking a fresh negative view. On the way up, immediate hurdle on the hourly chart is placed around 8405 above which 8490, the top made last week, would be the next target to eye.
Coal India, ONGC, Hindalco and NMDC will report their quarterly earnings today.