NIFTY ON TRACK TO ACHIEVE 7680 TARGET
US indices fell 0.1%-0.2%, digesting prospect of a rate hike in June and awaiting further cues from the U.S. Federal Reserve.
Over the weekend Boston Fed President told that "most of the conditions that were laid out in the minutes as of right now seem to be … on the verge of broadly being met." Yesterday, St. Louis Fed President said a tight labor market may put upward pressure on U.S. inflation, supporting the case for higher rates. Separately San Francisco Fed President said that there could be two or three rate hikes this year, and maybe three or four next year.
Nymex crude fell 33 cents or 0.7% to $48.08 a barrel. The commodity came under pressure after Iran's deputy oil minister said the nation had no plan to freeze crude output or exports but pared losses after data showing a stockpile drawdown at a major U.S. delivery hub.
The flash Markit manufacturing PMI came in at 50.5 in May, down from 50.8 in April.
The U.S. issued a fresh warning to Japan against competitive currency devaluation on Saturday, exposing a rift on exchange-rate policy that overshadowed a G-7 finance leaders gathering hosted by Japan.
In Europe, FTSE fell 0.3%, CAC and DAX lost 0.7% each while Italy tumbled 2.7%. Markit's latest flash PMI came in at a 16-month low of 52.9 in May, down from April's 53.0. However, Germany's PMI rose to 54.7 in May from April's 53.6; France's hit a seven-month high of 51.1.
Benchmark indices ended lower by a fourth of a percent after an extremely choppy trade, extending the losing streak to fourth straight day. Sensex lost 72 points to settle at 25230 while Nifty finished at 7731, down 19 points. BSE mid-cap and small-cap indices lost 0.3% and 0.4% respectively. BSE Capital Goods and Healthcare indices lost 0.9% and 0.8% respectively, becoming top losers among the sectoral indices while FMCG index soared 2.1% to become top gainer, followed by 0.8% rise in Telecom index.
FIIs net sold stocks worth Rs 66 cr but net bought index futures and stock futures worth Rs 326 cr and 386 cr respectively. DIIs were net sellers to the tune of Rs 168 cr.
Rupee depreciated 5 paise to end at 67.49/$.
National Green Tribunal yesterday banned registration of new diesel vehicles with an engine capacity of over 2000 cc in Kerala. The tribunal also banned light and heavy diesel vehicles that are more than 10 years old from plying in six major cities in the state.
Tata Power reported 126% growth in Jan-March quarter profit at Rs 360 cr aided by lower tax, finance and fuel costs. Operating profit rose 23% to Rs 1312 cr. Revenue rose 19% to Rs. 9334 cr.
Today morning Asian markets are trading with cuts of upto 0.7% with Nikkei leading the losses and SGX Nifty is suggesting about 15 points lower opening for our market.
Ever since Nifty broke 7780-7770 support, we have been working with the downside target of 7680, which is the bottom made in early May. Yesterday Nifty lost 19 points to close at 7731.
7680 continues to be the downside target to eye, a decisive breach of which will open up the possibility of the retest of the 7517 bottom made in April.
Immediate hurdle on the hourly chart has moved lower to 7820, with the stop loss of which short positions should be held on to.
Cipla and Tech Mahindra will report their quarterly earnings today.