Monday, July 13, 2015




Dow and S & P 500 climbed 1.2% each and Nasdaq surged 1.5% on Friday as hopes for resolution in Greece and stabilization in China boosted sentiment.

Greece, on Thursday night, submitted economic reform proposals and asked for 53.5 billion euros ($59.4 billion) as part of a new bailout package from its creditors.

Fed Chair Janet Yellen said in prepared remarks the U.S. is still on pace for a rate hike this year and that fundamentals are solid and sees pickup in growth in the coming years.

European markets soared 1.4%-3.1%

Chinese stocks extended gains on Friday, jumping for a second day following government intervention.

Nymex oil fell 4 cent sto $52.74 a barrel.

For the week, Dow gained 0.2%, S & P 500 ended flat while Nasdaq lost 0.2%. European markets gained 1.3%-2.4%.

Benchmark indices ended higher by a third of a percent after an extremely choppy session, breaking the three-day losing streak. Sensex settled at 27661, up 88 points while Nifty rose 32 points to finish at 8360. BSE mid-cap and small-cap indices gained a fifth of a percent. BSE Bankex and Healthcare indices gained the most among the sectoral indices, rising 1.2% and 1% respectively while Realty and FMCG indices were the top losers, giving away 0.8% and 0.7% respectively.

FIIs net sold stocks and stock futures worth Rs 465 cr and 1058 cr respectively but net bought index futures worth Rs 7 cr. DIIs were net buyers to the tune of Rs 590 cr.

Rupee depreciated 1 paise to end at 63.39/$.

For the week, Sensex and Nifty lost 1.5% each, breaking the three-week winning streak.

The index of industrial production (IIP) for the month of May came in at 2.7%, fallling from 4.1% in April, led by a sharp fall in capital goods and consumer goods data.


The emergency summit of euro zone leaders over Greece still continues. Eurogroup finance ministers submitted a draft decision to the European leaders which included six sweeping measures including tax and pension reforms and Greece has been told to push legislation through its parliament on these measures by Wednesday night before talks can start. The official statement from the summit is awaited.

Today morning, except a percent lower Hang Seng, other Asian markets are trading with gains of upto a percent and SGX Nifty is suggesting a marginally lower start for our market.

In Friday's report we had advised booking profit in short positions and remaining on sideline as the higher-top higher-bottom formation on the daily chart of Nifty is still intact while on the hourly chart the benchmark is in a sell mode.

Immediate resistance on the hourly chart is placed around 8440, a crossover of which should be awaited for taking fresh longs. On the way down, 34-DMA, placed around 8270, is the immediate support below which immediate previous bottom on the daily chart, placed at 8195, would be the important support to eye.

India's inflation based on consumer prices (CPI) for June will be released today. In May, the inflation rose to a three-month high of 5.01%.

Oil prices will also be in focus today on the back of ongoing Iran nuclear talks. After two delays, the deadline has now been pushed to Monday, the Iranian foreign minister said over the weekend. Officials say differences between the Washington and Tehran are improving, although U.S. Secretary of State John Kerry warned "major issues" remain unsolved.

Indusind Bank will report its quarterly earnings today.

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