9560-9710 CONTINUES TO BE IMMEDIATE RANGE

9560-9710 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS                             

Dow and S & P 500 ended marginally in the green while Nasdaq lost 0.3% yesterday as technology stocks fell whille financials were up. Dow snapped a five-day losing streak.

Bank stocks rose after the Italian government said it reached a deal to wind up Popolare di Vicenza and Veneto Banca, two regional banks.

Durable goods fell 1.1% in May, more than the expected 0.6% drop. Treasury yields eased following the data.

U.S. crude rose 0.9% to settle at $42.38 a barrel

European markets gained 0.3%-0.8%.  The Institute for Economic Research's overall German business climate index unexpectedly improved to hit 115.1 in June, up from the previous record high of 114.6 in May.  

AT HOME

Benchmark indices fell about half a percent, extending losing streak to fourth consecutive day. Sensex lost 153 points to settle at 31138 while Nifty finished at 9575, down 55 points. BSE mid-cap and small-cap indices nosedived 1.2% and 1.5% respectively. All the BSE sectoral indices ended in red with Auto and Industrial indices leading the losses, down 1.5% and 1.4% respectively.

FIIs net bought stocks and index futures worth Rs 270 cr and 898 cr respectively but net sold stock futures worth Rs 251 cr. DIIs were net sellers to the tune of Rs 122 cr.

Rupee appreciated 8 paise to end at 64.52/$.

For the week, Sensex gained 0.3% but Nifty fell 0.1%.

Indian Prime Minister Modi met US President Trump at White House yesterday and both the leaders vowed to work more closely on issues such as combating terrorism, the war in Afghanistan and defense cooperation. In his statement Trump said "I would say the relationship between India and the United States has never been stronger, has never been better," and added that "I look forward to working with you, Mr. Prime Minister, to create jobs in our countries, to grow our economies and to create a trading relationship that is fair and reciprocal,".

OUTLOOK

Today morning, Asian markets are trading flat to modestly higher and SGX Nifty is trading around 9625, suggesting about 35 points higher start when compared to Friday's close of Nifty future.

In Friday's report we had mentioned that 9560, the immediate previous bottom on daily chart, which roughly coincides with the 34-DMA, is the important immediate support to eye, a breach of which would pave the way for further correction.

Nifty touched a low of 9565 on Friday and closed at 9575 but is set to open higher today.

9560 continues to be important immediate support below which 9470-9420 would be the next support area.

9710, the top made on 6th June, continues to be important hurdle, a crossover of which is required for a fresh upmove.