Monday, June 22, 2015



WORLD MARKETS                             

Dow and S & P 500 lost half a percent each while Nasdaq lost 0.3% on Friday, eyeing developments in the Greece debt negotiations amid quarterly options expirations.

The US 10-year Treasury yield fell below 2.3% to trade near 2.26%. Nymex oil fell 84 cents to $59.61 a barrel.

European markets, except half a percent lower DAX, and flattish FTSE, gained 0.2%-1.1%.

Amid a growing stalemate between Greece and its foreign creditors and with anxious depositors pulling billions of euros out of Greek banks, Greek Prime Minister Alexis Tsipras made a new offer on a reforms package yesterday, showing a new willingness to make concessions that could unlock frozen aid to avert a default. Both sides are due to continue the negotiations at a crisis summit in Brussels today.

Meanwhile, large deposit outflows from Greece have raised concerns that Athens may have to implement capital controls. The European Central Bank expanded emergency funding for Greek banks on Friday as savers pulled out 1.2 billion euros in a single day on Friday.

Earlier, the Shanghai Composite tumbled 6.4% for its worst weekly decline in 7 years with property and banking stocks leading the index lower.

For the week, Dow and S & P 500 gained 0.7% each while Nasdaq rose 1.3%. European markets lost 0.8%-1.8%.


It was a fantastic finish to the week as benchmark indices ended with gains of nearly seven tenth of a percent after a choppy trading session, extending the winning streak to sixth straight day. Sensex settled at 27316, up 200 points while Nifty rose 50 points to end at 8225. BSE mid-cap and small-cap indices rose 0.6% and 0.3% respectively.BSE Oil & Gas index and Bankex were the top gainers among the sectoral indices, rising 1.1% and 0.9% respectively while Realty and Power indices were the top losers, giving away 0.8% and 0.2% respectively.

FIIs net sold stocks and index futures worth Rs 106 cr and 155 cr respectively but net bought stock futures worth Rs 894 cr. DIIs were net buyers to the tune of Rs 448 cr.

Rupee closed at 63.55/$, appreciating 18 paise compared to previous close.

For the week, Sensex and Nifty gained 3.4% and 3% respectively, breaking 3-week losing streak and registering the best weekly gain in five months.

Today morning Asian markets are trading with gains in the vicinity of half a percent and SGX Nifty is suggesting about 25 points higher opening for our market.

Just to reiterate we have advised going long on Nifty ever since 8070 hurdle was taken out for the targets of 8160-8190 followed by 8220, with later being the 34-day moving average.

The benchmark on Friday touched a high of 8251 before closing at 8225, achieving the 8220 target and vindicating our view.

Having crossed the 34-DMA, next major target as well as the hurdle to eye is 200-DMA placed around 8360, where the trendline adjoining tops made in March and April is also placed.

Immediate support on the hourly chart continues to be around 8100, with the stop loss of which trading longs can be held on to.

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