Wednesday, June 22, 2016




US indices gained 0.1%-0.3% yesterday digesting the remarks from the Fed chair and counting down to the upcoming British vote to decide whether to remain in the European Union.

Federal Chair Yellen, who began her two-day testimony before Congress, said in prepared remarks that a cautious approach to monetary policy remains appropriate and while the pace of improvement in the labor market has slowed, it's important not to overreact to one or two labor reports. She added that a United Kingdom vote to leave the EU could have significant economic repercussions.

Dollar index rose about half a percent. Gold tumbled $20 to $1272 an ounce.

US oil ended off-the-day low but still down 52 cents or 1.05% at $48.85 a barrel. Data from American Petroleum Institute showed larger than expected 5.2 million barrels fall in crude inventories.

European markets rose 0.2%-0.6%. German ZEW institute's economic sentiment index for June came in at 19.2, a big rise from the 6.4 recorded in the previous month, giving a boost to investor sentiment.

Benchmark indices ended lower by a fifth of a percent after a range bound session. Sensex lost 54 points to settle at 26813 while Nifty lost 19 points to finish at 8220. BSE mid-cap and small-cap indices however gained 0.1% and 0.4% respectively. BSE Utilities and Power indices fell 0.8% and 0.7% respectively, becoming top losers among the sectoral indices while Auto and Consumer Durable indices were the top gainers, up 0.6% and 0.4% respectively.

FIIs net bought stocks and stock futures worth Rs 485 cr and 294 cr respectively but net sold index futures worth Rs 570 cr. DIIs were net sellers to the tune of Rs 336 cr.

Rupee depreciated 18 paise to end at 67.49/$.


Today morning Asian markets are trading with cuts of 0.2%-0.8% with Nikkei leading the losses and SGX Nifty is suggesting about 20 points lower start for our market.

Nifty continues to consolidate within 8295-8064 range a decisive crossover of which, on either side, will give fresh direction. Keeping in mind this range as well as the looming Brexit vote, we have been advising keeping trading volumes low and that continues to be the view.

8150 is the immediate support on the hourly chart, which should serve as the stop loss for trading longs.

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