12000 ABOVE 11945; TRAIL STOP-LOSS TO 11820

12000 ABOVE 11945; TRAIL STOP-LOSS TO 11820

WORLD MARKETS

US indices gained 0.7%-0.8% to hit record highs after weaker-than-expected economic data raised expectation of a rate cut from the Fed later this month.

Data from ADP and Moody's Analytics showed private payrolls increased by 102000 in June, the expected figure being 135,000.

A tweet from President Trump calling for easier monetary policy added to expectations of easier Fed policy. Trump said the U.S. should “match” monetary policies from China and Europe, noting they are “playing big currency manipulation game and pumping money into their system in order to compete with USA.”

10-year Treasury yield fell to 1.938 before recovering to 1.956, its lowest level since 2016.

Brent crude rose $1.42 or 2.3% to $63.82 a barrel while US oil rose $1.09 or 1.9% to $57.34.

In Europe FTSE, DAX and CAC rose 0.7%-0.8% while Italy surged 2.4%. European Union leaders agreed on Tuesday to nominate International Monetary Fund (IMF) Managing Director Christine Lagarde as the new head of the European Central Bank (ECB).

AT HOME

It was a day of consolidation as benchmark indices ended marginally higher after trading in a narrow range. Sensex settled at 39839, up 22 points while Nifty added 6 points to finish at 11916. BSE mid-cap and small-cap indices gained 0.1% and 0.3% respectively. BSE Realty and Capital Goods indices gained 0.8% and 0.6% respectively, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, down 0.9% and 0.7% respectively.

FIIs net sold stocks worth Rs 390 cr but net bought index futures and stock futures worth Rs 7 cr and 461 cr respectively. DIIs were net buyers to the tune of Rs 288 cr.

Rupee appreciated 1 paise to end at 68.91/$.

India's June Nikkei Services PMI fell to 49.6 from 50.2 in May, slipping into contraction territory for the first time since May 2018.

OUTLOOK

Today morning, Asian markets are trading with modest gains and SGX Nifty is suggesting a marginally higher start for our market.

Readers would recall that we had turned our view on Nifty positive after 10850 hurdle was taken out and had have been working with targets of 12000 and 12100 after 11911 target was achieved.

Nifty yesterday touched a high of 11945 before closing at 11916 and is set to open

12000 and 12103, the tops made on 11 and 3 June respectively, continue to be upside targets to eye.

34-DMA, which has now moved up to 11820, will act as the immediate support and traders are advised to continue holding the long positions with the stop-loss of the same.

A day ahead of the budget, economic survey will be tabled in the Parliament today.

Markets in the US will remain shut today for the Independence Day holiday.