NIFTY EXTENDS CONSOLIDATION WITHIN 10553-10194 RANGE

NIFTY EXTENDS CONSOLIDATION WITHIN 10553-10194 RANGE

WORLD MARKETS

US indices soared 1.2%-2.3%, helped by big surge in Boeing shares and strong home sales data.

Boeing soared 14.4% after certification flights for the Boeing 737 Max began. Pending home sales for May jumped 44.3%.

Meanwhile, New Jersey Gov. Phil Murphy announced the state will delay a resumption of indoor dining that was planned for Thursday.

European markets rose 0.7%-1.7%. Eurozone economic sentiment index for June rose to 75.7 from May’s 67.5. Employment expectations in both goods and services also increased.

Earlier, data from China showed profits at industrial firms rose for the first time in six months in May, suggesting the country’s economic recovery is gaining traction.

Brent crude rose 74 cents, or 1.8%, to $41.76 a barrel. U.S. crude gained $1.21, or 3.1%, to $39.70 a barrel.

AT HOME

After falling nearly a percent and half in the morning, Sensex and Nifty recouped more than half of the losses in noon trade to end lower by 0.6% and 0.7% respectively. Sensex settled at 34961, down 209 points while Nifty lost 70 points to finish at 10312. BSE mid-cap and small-cap indices slipped 2% and 1.2% respectively. Except 1.4% and 0.8% higher Telecom and FMCG indices respectively, all the BSE sectoral indices ended in red with Realty and Metal indices leading the losses, down 2.9% and 2.5% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1937 cr, 1242 cr and 790 cr respectively. DIIs were net buyers to the tune of Rs 1036 cr.

Rupee appreciated 6 paise to end at 75.58/$.

Tata Steel reported better-than-expected numbers with EBITDA and Margin beating expectations and lower-than-expected loss. Management commentary was also optimistic. Revenue fell 20.4% y-o-y to Rs 33770 cr, EBITDA fell 38% to Rs 4647 cr, margin shrank 390 bps to 13.8% and net loss stood at Rs 1096 cr.

Government announced new unlock guidelines according to which, all activities, except  the following, shall be permitted outside containment zone. Activities in negative list include Metro Rail, Cinema halls, gymnasiums, swimming polls, entertainment parks, theaters, bars, auditoriums, assembly halls and similar places.

OUTLOOK

China’s official manufacturing PMI for June has came in at 50.9, up from 50.6 in May and beating the forecast of 50.4 read.

Today morning, Asian markets are trading with gains of 0.3%-1.8% with Nikkei on the top and SGX Nifty is suggesting around 70 points higher start for our market.

In yesterday's report we had reiterated the view that 10194, the low made last week, continued to be important immediate support, while 10553, the top made last week, continued to be important resistance.

Nifty, after touching a low of 10223, rebounded to end at 10312 and is set to open near 10400 today.

10553, the top made last week, which also coincided with the 61.8% retracement level of the entire 12430-7511 fall, continues to be important resistance, a crossover of which is required for a fresh upmove.

10194, the low made last week, continues to be important immediate support, below which, 10050 and 9880, the 50% and 67% retracement levels of the recent 9544-10553 upmove, would be next supports to eye.

PM Modi will address the nation at 4 pm today.

10553-10194 CONTINUES TO BE IMMEDIATE RANGE

10553-10194 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices nosedived 2.4%-2.8% on Friday after Texas and Florida rolled back some of their reopening measures, raising concern about the latest spike in coronavirus cases and its impact on the economy.

Texas ordered all bars and establishments that receive more than 51% of their gross receipts from alcoholic beverages to shut down operations. Restaurants, meanwhile, must limit on-premise dining to less than 50% indoor capacity. Florida also announced it would suspend “on premises consumption” of alcohol at bars in the state.

Bank shares fell after Federal Reserve told them to suspend share repurchase programs and cap dividend payments at current levels for the third quarter as annual stress test showed some banks could get close to minimum capital levels in scenarios related to the coronavirus pandemic.

Nike shares slid 7.6% after reporting a surprising quarterly loss of 51 cents per share.

Meanwhile, the Commerce Department reported that consumer spending increased 8.2% last month, marking the largest one-month gain dating back to records beginning in 1959.

The U.S. 5-year Treasury yield dropped to a record low of 0.29%. The 3-year rate also slid to an all-time low of 0.17%.

Brent futures fell 14 cents to $40.9 while WTI futures fell 23 cents, or 0.6% to settle at $38.49 per barrel.

In Europe, FTSE rose 0.2% but DAX and CAC fell 0.7% and 0.2% respectively.

For the week, US indices fell 1.9%-3.3%. Brent fell 3.1% while U.S. crude eased 3.6%

AT HOME

After two-day retreat, bulls made a comeback as benchmark indices gained nine tenth of a percent, breaking two-day losing streak. Sensex settled at 35171, up 329 points while Nifty added 94 points to finish at 10383. BSE mid-cap and small-cap indices gained 0.3% and 0.2% respectively. BSE IT and Teck indices soared 5.1% and 4% respectively, becoming top gainers among the sectoral indices, while FMCG and Realty indices were the top losers, down 1.2% and 1.1% respectively.

FIIs net sold stocks and index futures worth Rs 753 cr and 190 cr respectively but net bought stock futures worth Rs 363 cr. DIIs were net buyers to the tune of Rs 1304 cr.

Rupee appreciated 1 paise to end at 75.61/$.

IT stocks rallied after Accenture came out with better-than-expected quarterly numbers.

For the week, Sensex and Nifty gained 1.3% and 1.4% respectively, extending the winning streak to second consecutive week.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-1.2% and SGX Nifty is suggesting around 35 points lower start for our market

In Friday's report we had reiterated the view that 10200 continued to be immediate support while 10553 continued to be important resistance.

Nifty, after a rangebound but choppy session, ended 0.9% higher at 10383 and is set to open near 10350 today.

10194, the low made last week, continues to be important immediate support, below which, 10050 and 9880, the 50% and 67% retracement levels of the recent 9544-10553 upmove, would be next supports to eye.

10553, the top made last week, which also coincided with the 61.8% retracement level of the entire 12430-7511 fall, continues to be important resistance, a crossover of which is required for a fresh upmove.

NIFTY REBOUNDS FROM 10200 SUPPORT; 10553 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY REBOUNDS FROM 10200 SUPPORT; 10553 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

After opening in red, US indices ended with gains of 1.1%-1.2% thanks to last hour surge as bank stocks jumped after Fed and four regulatory agencies announced they were going to change a rule that has limited banks’ ability to make investments.

US weekly jobless claims totaled 1.5 million last week, slightly higher than the estimate of 1.3 million.

Meanwhile, more than 45,000 new coronavirus cases were confirmed in the US on Wednesday, a record that surpassed the previous April 26 peak by over 9,000 cases.

Brent crude rose 74 cents, or 1.8%, to $41.05, while WTI settled 71 cents, or 1.87%, higher at $38.72 per barrel.

European markets rose 0.4%-1%.

In an after market development, US Federal Reserve's annual stress test found that several banks could get close to minimum capital levels in scenarios related to the coronavirus pandemic. As a result, banks have to suspend share buyback programs and leave dividend payments at current levels for the third quarter. The report sent some bank shares lower in after-hours trading.

Nike shares slid nearly 4% after the bell on the back of a surprising quarterly loss for the apparel giant.

AT HOME

It was a day of consolidation as benchmark indices ended marginally lower after a range bound but choppy session. Sensex settled at 34842, down 26 points while Nifty lost 16 points to finish at 10288. BSE mid-cap and small-cap indices gained 0.6% and 0.8% respectively.  BSE IT and Teck indices slipped 1.6% and 1.2% respectively, becoming top losers among the sectoral indices while FMCG index climbed 2.2%, becoming top gainer, followed by 1% higher Healthcare index.

FIIs net sold stocks and index futures worth Rs 1051 cr and 1002 cr respectively but net bought stocks futures worth Rs 734 cr. DIIs were net sellers to the tune of Rs 256 cr.

Rupee appreciated 5 paise to end at 75.66/$.

For the June derivative series, Nifty gained 8.4%.

OUTLOOK

Today morning, Shanghai is shut while Nikkei is up 1% and Hang Seng is down 0.2%. SGX Nifty is suggesting around 60 points higher start for our market.

In yesterday's report we had said that immediate support on the hourly chart had moved up to 10200 while 10553, the top made Wednesday, was the important resistance.

Nifty, after touching a low of 10194, rebounded to close at 10288 and is set to open near 10350 today.

10200 continues to be immediate support, upon sustained trading below which, 10050 and 9880, the 50% and 67% retracement levels of the recent 9544-10553 upmove, would be next supports to eye.

10553, the top made Wednesday, which also coincided with the 61.8% retracement level of the entire 12430-7511 fall, continues to be important resistance, a corssover of which is required for a fresh upmove.

ITC will report its quarterly earnings today.

NIFTY RETREATS FROM 10550 HURDLE; 10050, 9880 BELOW 10200

NIFTY RETREATS FROM 10550 HURDLE; 10050, 9880 BELOW 10200

WORLD MARKETS

US indices nosedived 2.2%-2.7% on intensifying worries about a coronavirus resurgence. All three benchmarks posted their worst day since June 11 and Nasdaq snapped an eight-day winning streak.

California and Florida reported their biggest daily spikes in new coronavirus cases, while Houston said its intensive-care unit beds are near capacity. New York, New Jersey and Connecticut also ordered visitors from certain hotspot states to quarantine for 14 days.

The International Monetary Fund slashed its economic forecasts again, projecting a contraction of 4.9% in global GDP in 2020, lower than the 3% fall it predicted in April. For 2021, 5.4% growth is expected, which is down 40 bps from April forecast.

Brent crude tumbled $2.29, or 5.5%, to $40.29 a barrel while WTI settled $2.36, or 5.8%, lower at $38.01 per barrel after data showed U.S. crude oil inventories swelled last week by 1.4 million barrels, exceeding expectations for a 299,000-barrel rise.

Meanwhile, according to a notice from the U.S. Trade Representative, The Trump administration is considering new tariffs on $3.1 billion exports from France, Germany, Spain and the U.K.

European markets tumbled 2.9%-3.4%.

AT HOME

After rising nearly eight tenth of a percent, benchmark indices nosedived more than 2% from top of the day to end lower by 1.6% each, snapping four-day winning streak. Sensex settled at 34868, down 561 points while Nifty lost 165 points to finish at 10305. BSE mid-cap and small-cap indices fell 1.1% and 1.2% respectively. Except 0.3% higher FMCG index, all the BSE sectoral indices ended in red with Bankex and Telecom indices leading the losses, down 4.1% and 3.1% respectively.

FIIs net bought stocks and stock futures worth Rs 1767 cr and 460 cr respectively but net sold index futures worth Rs 1051 cr. DIIs were net sellers to the tune of Rs 1525 cr.

Rupee depreciated 7 paise to end at 75.71/$.

IMF said it expects India's GDP to contract 4.5% in FY21, which is 640 bps lower than its own forecast made in April. For FY22, it expects growth of 6%, which is lower by 140 bps from April forecast.

OUTLOOK

Markets in China and Hong Kong are closed today for a holiday. Nikkei is down 1.2% and SGX Nifty is suggesting around 100 points lower start for our market.

Just to reiterate, after 10328 target was achieved, we had been working with next target of 10550, which is the 61.8% retracement level of the entire 12430-7511 fall.

Nifty yesterday touched a high of 10553, achieving this target and vindicating our view. From there it fell sharply to end at 10305 and is set to open near 10200 today.

Immediate support on the hourly chart has moved up to 10200, upon sustained trading below which, 10050 and 9880, the 50% and 67% retracement levels of the recent 9544-10553 upmove, would be next supports to eye.

10553, the top made yesterday, which also coincided with the 61.8% retracement level of the entire 12430-7511 fall, is the important resistance, a crossover of which is required for a fresh upmove.

Exit trading longs if Nifty sustains below 10200.

NIFTY MOVES CLOSER TO 10550 TARGET; TRAIL STOP-LOSS TO 10175

NIFTY MOVES CLOSER TO 10550 TARGET; TRAIL STOP-LOSS TO 10175

WORLD MARKETS

US indices gained 0.4%-0.7%, with Nasdaq extending rising streak to eighth consecutive day and hitting fresh record high

Apple rose 2.1% on to reach a new all-time high, after it unveiled new operating systems for its iPhone and computers.

Meanwhile, White House health advisor Dr. Anthony Fauci said  parts of the U.S. are beginning to see a “disturbing surge” of Covid-19 cases. He however struck a more upbeat tone on a vaccine potential and said he expects one by early 2021.

Brent crude fell 45 cents, or 1%, to settle at $42.63 per barrel while WTI settled 36 cents, or 0.89%, lower at $40.37 per barrel.

European markets climbed 1.2%-2.1%. IHS Markit’s flash composite PMI for the euro zone increased to 47.5 in June from 31.9 in May and a record low 13.6 in April.

AT HOME

Benchmark indices soared a percent and half, extending the winning streak to fourth straight day and closing at the highest level since 11th March and 6th March respectively, marking three and a half month high. Sensesx settled at 35430, up 519 points while Nifty added 160 points to finish at 10471. BSE mid-cap and small-cap indices gained 1.7% and 1.8% respectively. Except 1% lower Energy index, all the BSE sectoral indices ended in green with Power and Capital Goods indices leading the tally, up 4.2% and 4.1% respectively.

FIIs net bought stocks and stock futures worth Rs 169 cr and 116 cr respectively but net sold index futures worth Rs 115 cr. DIIS were net buyers to the tune of Rs 454 cr.

Rupee appreciated 37 paise to end at 75.64/$.

Department of Revenue yesterday notified anti-dumping duty on flat rolled zinc/aluminium coated steel imports from Korea, Vietnam and China for a period of 5 years.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting around 15 points lower start for our market.

At the risk of repeating, we had turned our view on Nifty bullish after 10070 hurdle was taken out and have been advising holding on to long positions with the trailing stop-loss.

After 10328 target was achieved, we have been working with next target of 10550, the 61.8% retracement level of the entire 12430-7511 fall.

Nifty yesterday surged to 10484 before closing at 10471 and is set to open near 10450 today.

10550, the 61.8% retracement level of the entire 12430-7511 fall, continues to be next upside target. Upon decisive crossover of 10550, 10770, where 34-week moving average is placed, would be the next major target/resistance to eye.

Immediate support on the hourly chart has moved up to 10175, with the stop-loss of which, trading longs can be held on to.

10550 IS THE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 10065

10550 IS THE NEXT UPSIDE TARGET;  TRAIL STOP-LOSS TO 10065

WORLD MARKETS

After opening in red, US indices saw a sustained northward move through the session to end higher with Dow and S & P 500 up 0.6% each  while Nasdaq climbed 1.1%. Optimism over economic recovery and strength in tech stocks outweighed concerns of surging coronavirus cases.

The U.S. saw more than 36,000 new cases reported on Sunday after more than 30,000 new cases were reported on both Friday and Saturday. Texas Gov. Greg Abbott warned that “additional measures are going to be necessary” if coronavirus cases and hospitalizations continued spiking.

Brent crude rose 89 cents, or 2.1%, to $43.08 per barrel while WTI gained 71 cents, or 1.8%, to settle at $40.46 per barrel.

European markets fell 0.6%-0.8%. Germany’s Robert Koch Institute for public health said the coronavirus reproduction rate jumped to 2.88 on Sunday, up from 1.79 a day earlier.

Earlier, China kept its benchmark lending rate unchanged, with the 1-year loan prime rate left at 3.85%.

AT HOME

Sensex and Nifty gained 0.5% and 0.6% respectively, extending the winning streak to third straight day and closing at the highest level in nearly three and half months. Sensex added 179 points to settle at 34911 while Nifty finished at 10311, up 66 points. BSE mid-cap and small-cap indices climbed 2% and 1.4% respectively. Except 0.4% lower IT index, all the BSE sectoral indices ended in green with Power and Metal indices leading the gains, up 2.8% and 2.7% respectively.

FIIs net bought stocks and index futures worth Rs 424 cr and 76 cr respectively but net sold stock futures worth Rs 770 cr. DIIs were net sellers to the tune of Rs 1288 cr.

Rupee appreciated 16 paise to end at 76.02/$.

US President Trump signed proclamation suspending H-1B and other work related visas till December 31.

OUTLOOK

White House trade advisor Peter Navarro, in an interview said that the trade deal with China was “over.” Asian markets are down 0.4%-1% and US futures have slipped nearly a percent owing to this statement. SGX Nifty however is trading around 10330, suggesting around 40 points higher start when compared to yesterday’s close of Nifty futures.

Readers would recall that we turned our view on Nifty bullish after 10070 hurdle was taken out and have been advising holding on to long positions with the trailing stop-loss.

In yesterday’s report we had said that 10328, the top made on  8th June, was the next upside target, upon decisive crossover of which, 10550, the 61.8% retracement level of the entire 12430-7511 fall, would be the next target/resistance to eye.

Nifty, after touching a high of 10393, closed at 10311 and is set to open above 10350 today.

10550, the 61.8% retracement level of the entire 12430-7511 fall, continues to be the next upside target/resistance to eye.

Immediate support on the hourly chart has moved up to 10065, with the stop-loss of which, trading longs should be held on to.

Asian Paints, Berger Paints and Page Industries will report their quarterly earnings today.

Markets will also keep an eye on a virtual meeting between the foreign ministers of India, China and Russia today.

10328 CONTINUES TO BE UPSIDE TARGET/RESISTANCE; 9960 IMMEDIATE SUPPORT

10328 CONTINUES TO BE UPSIDE TARGET/RESISTANCE; 9960 IMMEDIATE SUPPORT

WORLD MARKETS

After rising more than a percent, Dow and S & P 500 nosedived to end with cuts of 0.8% and 0.6% respectively on the back of a slew of negative news surrounding the pandemic. Nasdaq managed to end flat.

Arizona and Florida reported record spikes in confirmed Covid-19 cases on Friday. California on Thursday reported more than 4,000 new cases in a single day, the highest daily number ever.

Apple said it’s reclosing a total of 11 stores in Florida, Arizona, South Carolina and North Carolina. Cruise Lines International Association announced suspension of cruise operations from U.S. ports, citing the ongoing situation with the pandemic.

Initial gains was on the back of a news report that China was set to up its purchases of U.S. farm products to comply with the phase-one trade deal.

Brent crude rose 61 cents to $42.12 a barrel, while WTI gained 91 cents to settle at $39.75 per barrel.

European markets gained 0.4%-1.1%. Germany’s statistics office on Friday reported a 2.2% annual fall in inflation for May and a 0.4% decline from the previous month, slightly below expectations. U.K. retail sales for May were down 13.1% y-o-y, significantly outstripping expectations of a 17.1% decline.

AT HOME

Bulls continued to call the shots as benchmark indices climbed a percent and half to close at the highest level since 11th March, marking the highest level in more than 3-months. Sensex settled at 34731, up 523 points while Nifty added 152 points to finish at 10244. BSE mid-cap and small-cap indices rose 1% and 1.4% respectively. Except 0.4% and 0.1% lower IT and Consumer Durables indices, all the BSE sectoral indices ended in green with Realty and Energy indices leading the tally, up 6.4% and 5% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1237 cr, 511 cr and 1161 cr respectively. DIIs were net sellers to the tune of Rs 881 cr.

Rupee depreciated 4 paise to end at 76.18/$.

For the week, Senesx and Nifty gained 2.8% and 2.7% respectively.

OUTLOOK

Today morning, Shanghai and Nikkei are little changed while Hang Seng is down 0.7%. SGX Nifty is suggesting around 40 points lower start for our market.

After Nifty crossed 10070 hurdle on Thursday, we had given next upside target of 10328 in Friday's report.

Nifty touched a high of 10272 before closing at 10244 and is set to open near 10200 today.

10328, the top made on  8th June, continues to be next upside target to eye, upon decisive crossover of which, 10550, the 61.8% retracement level of the entire 12430-7511 fall, would be the next target/resistance to eye

9960 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

10328 IS THE NEXT TARGET; 9900 IMMEDIATE SUPPORT

10328 IS THE NEXT TARGET; 9900 IMMEDIATE SUPPORT

WORLD MARKETS

Dow fell 0.2% while S & P 500 and Nasdaq rose 0.1% and 0.3% respectively amid an uptick in coronavirus infections in parts of the United States and an elevated level of weekly jobless claims.

Initial U.S. jobless claims totaled 1.5 million for last week, topping estimate of 1.3 million.

Texas, California, Arizona and Florida all reported their biggest-ever one-day increase in coronavirus cases.

Brent crude futures rose 78 cents to $41.48 a barrel while WTI crude futures gained 88 cents to settle at $38.84 per barrel.

Main European markets fell 0.5%-0.8%. The Bank of England added another £100 billion to its bond-buying program, taking the total value of its Asset Purchase Facility (APF) to £745 billion.

Meanwhile, China said that a coronavirus outbreak in Beijing, which saw 21 new cases confirmed on Wednesday and 31 the day before, was now under control.

AT HOME

After three days of tug of war, bulls swept yesterday's trade as benchmark indices soared more than 2% to close at the highest level since 10th June. Sensex settled at 34208, up 700 points while Nifty added 210 points to finish at 10091. BSE mid-cap and small-cap indices gained 1% and 1.5% respectively. Except 0.1% lower Telecom and Healthcare indices, all the BSE sectoral indices ended higher with Bankex and Finance indices leading the tally, up 3.8% and 3.6% respectively.

Rupee appreciated 1 paise to end at 76.14/$.

FIIs net bought stocks, index futures and stock futures worth Rs 367 cr, 172 cr and 1230 cr respectively. DIIs were net buyers to the tune of Rs 1131 cr.

The Supreme Court directed telecom companies to provide their financial documents and gave the Department of Telecommunication (DoT) time until July third week to consider the proposals by the companies on making payment for the AGR dues.

OUTLOOK

Today morning, Shanghai and Nikkei are up 0.4% and 0.3% respectively while Hang Seng is flat. SGX Nifty is suggesting around 30 points lower start for our market.

In yesterday's report we had reiterated the view that 10070, the 67% retracement level of the recent 10328-9544 fall, continued to be immediate hurdle, while 9726, the low made Monday, continued to be immediate support.

Nifty, after making a low of 9845 in the initial trade, surged to touch a high of 10111 before closing at 10091, crossing the 10070 hurdle decisively.

10328, the top made last week, is the next upside target to eye.

9900 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

9544 BELOW 9726; 10070 CONTINUES TO BE IMMEDIATE HURDLE

9544 BELOW 9726; 10070 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 fell 0.6% and 0.4% respectively, snapping their 3-day winning streak, as increases in coronavirus cases cast doubt on a swift economic recovery. Nasdaq managed to gain 0.2%.

Several states in the U.S. are experiencing a resurgence of infections. Arizona reported a record high number of new confirmed cases, while Texas saw an 11% daily spike in hospitalizations for patients with Covid-19 yesterday.

Federal Reserve Chairman Jerome Powell said that the central bank will move away from corporate bond ETFs in favor of direct corporate-bond purchases.

Brent crude fell 35 cents, or 0.8%, to $40.61 a barrel while WTI fell 42 cents, or 1.1%, to settle at $37.96 per barrel.

Main European markets gained 0.2%-0.9%.

AT HOME

Benchmark indices ended modestly lower after a rangebound buy choppy session. Sensex settled at 33507, down 97 points while Nifty lost 33 points to finish at 9881. BSE mid-cap and small-cap indices however rose 0.3% and 0.7% respectively. BSE Telecom index climbed 2.4%, becoming top gainer among the sectoral indices, followed by 0.8% higher Auto index. Power index was the top loser, down 1%, followed by 0.8% lower Utilities and Metal indices.

FIIs net sold stocks worth Rs 487 cr but net bought index futures and stock futures worth Rs 266 cr and 552 cr respectively. DIIs were net buyers to the tune of Rs 168 cr.

Rupee appreciated 6 paise to end at 76.15/$.

The Supreme Court yesterday said there is "no merit in charging interest on interest" for deferred loan payment installments during the moratorium period announce in wake of the COVID-19 pandemic. The court asked the Centre and the RBI to review the situation and also sought clarity on the question on whether the Indian Banks' Association can come up with new guidelines. The matter will now be heard in the first week of August.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-1.4% and SGX Nifty is suggesting about 60 points lower start for our market.

In yesterday's report we had reiterated the view that 10070, the 67% retracement level of the recent 10328-9544 fall, continued to be immediate hurdle, while 9726, the low made Monday, continued to be immediate support.

Nifty, after touching a high of 10003, slipped to end at 9881 and is set to open near 9800 today.

9726, the low made Monday, continues to be immediate support, upon breach of which 9544, the low made last week, would be the important support to eye.

10070, the 67% retracement level of the recent 10328-9544 fall, continues to be immediate hurdle, upon crossover of which, 10328, the top made last week, would be the bigger resistance to eye.

NIFTY RETREATS FROM 10070 HURDLE; 9726 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY RETREATS FROM 10070 HURDLE; 9726 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices climbed 1.8%-2% after data showed a jump in retail sales in May and as a clinical trial showed promising results for treating coronavirus. A news report that Trump administration is preparing a near $1 trillion infrastructure bill also boosted the sentiment.

May retail sales saw a record 17.7% increase. Trial results announced yesterday showed dexamethasone — a widely available drug — can help critically ill coronavirus patients.

Stocks pared gains after Fed chair Powell, during his semiannual two-day testimony to the Senate banking committee, said, that the central bank would arrange its corporate bond buying based on market conditions and it doesn’t want to “run through the bond market like an elephant.”  Reports saying Beijing will shut down all schools amid a resurgence in coronavirus cases also weighed on the sentiment.

Brent crude rose $1.20, or 3%, to trade at $40.92 per barrel while WTI settled $1.26, or 3.39%, higher at $38.38 per barrel as IEA increased its oil demand forecast for 2020 and as record supply cuts supported.

European markets rose 2.8%-3.5%. U.K. unemployment remained surprisingly unchanged at 3.9% between February and April. Germany’s ZEW economic sentiment survey rose to 63.4 in June from 51.0 in May.

Asia was in focus due to geopolitical tensions. North Korea reportedly destroyed a liaison office with the South while over at the Himalayan border, Indian and Chinese troops clashed as the two sides remain in a standoff.

International Monetary Fund said the global economy is set to see a more significant contraction than it previously forecast.

AT HOME

After gaining more than 2% at the open, benchmark indices plunged nearly 3% from the top but rebounded in late noon trade to finally end about 1% higher. Sensex settled at 33605, up 376 points while Nifty added 100 points to finish at 9914. BSE mid-cap and small-cap indices gained 0.4% and 0.04% respectively. BSE Finance index and Bankex gained 2.4% and 2% respectively, becoming top gainers among the sectoral indices while Telecom and Realty indices fell 1.5% and 0.8% respectively, becoming top losers.

The steep fall happened after Indian Army said that one of its officers and two soldiers were martyred in a violent faceoff with China’s PLA in Galwan Valley region. The death tall was later confirmed at 20 personnel.

FIIs net sold stocks worth Rs 1478 cr but net bought index futures and stock futures worth Rs 114 cr and 369 cr respectively. DIIs were net buyers to the tune of Rs 1162 cr.

Rupee depreciated 19 paise to end at 76.21/$.

OUTLOOK

Today morning, Nikkei is down 0.6% while Hang Seng and Shanghai are up 0.4% and 0.1% respectively. SGX Nifty is suggesting around 50 points lower start for our market.

In yesterday's report we had said that 10070, the 67% retracement level of the recent 10328-9544 fall, continued to be immediate hurdle, while 9726, the low made Monday, which roughly coincided with the 61.8% retracement level of Friday's 9544-9996 pullback, would act as immediate support.

Nifty, after touching a high of 10046 in the initial trade, plunged to 9728 but rebounded from there to end at 9914 and is set to open below 9900 today.

10070, the 67% retracement level of the recent 10328-9544 fall, continues to be immediate hurdle, upon crossover of which, 10328, the top made last week, would be the bigger resistance to eye.

9726, the low made Monday, continues to be immediate support upon breach of which 9544, the low made last week would be important support to eye.