Friday, June 9, 2017



WORLD MARKETS                             

Dow and S & P 500 ended marginally in the green while Nasdaq added 0.4%, digesting former FBI Director James Comey's testimony.

Comey told the Senate Intelligence Committee he believed Trump had directed him in February to drop an FBI probe into former national security adviser, Michael Flynn, as part of the broader Russia investigation. Comey would not say whether he thought the president sought to obstruct justice, but added it would be up to special counsel Robert Mueller, who is now investigating the Russia allegations, "to sort that out." Comey did not make any major disclosures about any links between Trump or his associates and Russia.

Bond yields rose slightly, with the benchmark 10-year note yield near 2.208%, while the two-year note yield traded near 1.33%. Dollar index rose more than half a percent to 97.20.

European Central Bank kept interest rates unchanged. It dropped all references to a future rate cut from its statement but added that it would be ready to extend its quantitative easing (QE) program if needed. The euro fell 0.4% to $1.1216 against the dollar.

European markets were mixed with 0.4% lower FTSE, flat CAC, 0.3% higher DAX and 1.5% higher Italy.


Benchmark indices ended lower by a fifth of a percent after trading in a narrow range. Sensex lost 58 points to settle at 31213 while Nifty finished at 9647, down 17 points. BSE mid-cap and small-cap indices outperformed yet again, rising 0.2% and 0.3% respectively. BSE Oil & Gas and IT indices lost 1.4% and 1.3% respectively, becoming top losers among the sectoral indices while Healthcare index was the top gainer, up 1.6%, followed by 0.7% higher Metal index.

FIIs net bought stocks and index futures worth Rs 91 cr and 332 cr respectively but net sold stock futures worth Rs 352 cr. DIIs were net sellers to the tune of Rs 739 cr.

Rupee appreciated 11 paise to end at 64.21/$.


Exit polls showed U.K. Prime Minister Theresa May's Conservative Party might have lost its parliamentary majority, winning just 314 seats of the 326 seats required for a majority. The British pound tumbled to as low as $1.2704, down from levels around the $1.295 handle earlier.

Today morning, Nikkei is up about eight tenth of a percent while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting a flattish start for our market.

As we have been mentioning, 9710, the top made Tuesday, is the immediate hurdle, a crossover of which is required for a fresh upmove. 9800 would be the next upside target if that happens.

9590 continues to be immediate support, below which 20 DMA and 34 DMA, placed around 9540 and 9450 respectively, would be the next downside supports to eye.

Traders are advised to keep a stop-loss of 9590 in long positions.

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