NIFTY BREAKS 9580 SUPPORT; HEADED TO 34-DMA

NIFTY BREAKS 9580 SUPPORT; HEADED TO 34-DMA

WORLD MARKETS                             

Dow and S & P 500 fell 0.1% and 0.2% respectively while Nasdaq tumbled half a percent as tech stocks resumed descent.

Media reports suggested that President Donald Trump is being investigated by a special counsel for possible obstruction of justice.

Weekly jobless claims came in at 237,000. The Philadelphia Fed business index hit 27.6 in June, while the Empire State manufacturing survey reached 19.8. Retail sales, as against an expectation of a 0.1% gain, fell 0.3% in May, marking the largest one-month decline since January of last year.

Dollar index rose nearly half a percent to 97.45.

WTI crude fell 27 cents to $44.46 and Brent settled 8 cents lower at $46.92 a barrel.

European markets fell 0.5%-0.9%. Back in Europe, the Bank of England left rates at 0.25% and bond purchases at £435 billion, as was widely expected. U.K. retail sales fell 1.2% last month.

AT HOME

Sensex and Nifty saw a sustained downward move through the session to end lower by 0.3% and 0.4% respectively. Sensex lost 80 points to settle at 31076, it's lowest close since 26th May and Nifty fell 40 points to finish at 9578, the lowest since 25th May. BSE mid-cap index fell 0.1% but the small-cap index gained 0.4%. BSE Oil & Gas index was the top loser among the setoral indices, down 1.2%, followed by 0.9% each cut in IT and Teck indices. Realty index soared 2.2%, becoming top gainer, followed by 0.9% higher Healthcare index.

FIIs net sold stocks, index futures and stock futuers worth Rs 645 cr, 578 cr and 1007 cr respectively. DIIs were net buyers to the tune of Rs 855 cr.

Rupee depreciated 24 paise to end at 64.54/$.

India's trade deficit in May hit a 30-month high of USD 13.84 bn, up from USD 10.44 bn in April, as imports soared 33% y-o-y to $37.8 bn while exports rose 8.3% to USD 24 bn.

Petrol price was cut by Rs 1.12 per litre and diesel by Rs 1.24 per litre, the last of the fortnightly revisions after which daily correction in rates in step with cost will be implemented.

OUTLOOK

Today morning, except a marginally lower Shanghai, other Asian markets are trading with gains of 0.3%-0.5% and SGX Nifty is suggesting a flattish start for our market.

Nifty yesterday touched a low of 9560 and closed at 9578, breaking the immediate support placed at 9590-9580. Next support, as we have been mentioning, will come around 34-DMA, which is now placed around 9500.

9650 is the immediate hurdle on the hourly chart above which 9710 would be the next hurdle.