9944 BELOW 10021; 10291 CONTINUES TO BE IMMEDIATE HURDLE

9944 BELOW 10021; 10291 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 fell 1% and 0.5% respectively, extending the losing streak to second straight day after the Federal Reserve warned of a long economic recovery from the coronavirus recession with unemployment likely to remain high for many years. Nasdaq however rose 0.7% to hit fresh record.

Fed kept interest rates unchanged and indicated it does not expect to raise them through 2022. It also expects the U.S. economy to contract by 6.5% in 2020 before expanding by 5% in 2021.

The 10-year Treasury note yield fell 9 basis points to 0.744%, its largest one-day drop since April 15. Dollar index fell to 95.882 to hit fresh 3-month low.

Concerns about a second wave of coronavirus cases have risen as U.S. states reopen. Texas reported three consecutive days of record-breaking Covid-19 hospitalizations. Nine California counties reported a spike in new coronavirus cases or hospitalizations of confirmed cases.

Brent crude rose 34 cents to $41.52 a barrel while WTI gained 66 cents to settle at $39.60 per barrel  even as data from U.S. Energy Information Administration showed crude stocks rose by 5.7 million barrels in the week to June 5 to a record 538.1 million barrels.

Main European markets fell 0.1%-0.8%.

AT HOME

Sensex and Nifty ended higher by 0.9% and 0.7% respectively after a choppy session, extending consolidation of past couple of sessions. Sensex settled at 34247, up 290 points while Nifty added 69 points to finish at 10116. BSE mid-cap and small-cap indices gained 0.8% and 0.9% respectively. BSE Bankex and Realty indices climbed 1.8% each, becoming top gainers among the sectoral indices while Auto index was the top loser, down 1%, followed by 0.4% lower Metal, Oil & Gas and Consumer Discretionary Goods & Services indices.

FIIs net sold stocks and stock futures worth Rs 919 cr and 149 cr respectively but net bought index futures worth Rs 294 cr. DIIs were net buyers to the tune of Rs 501 cr.

Rupee appreciated 3 paise to end at 75.58/$.

Rating agency S & P affirmed India's BBB rating and retained a stable outlook.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.1%-1% and SGX Nifty is suggesting around 15 points lower start for our market.

In yesterday's report we had said that upon breach of Tuesday’s low, i.e. 10021, 9944, the bottom made last Thursday, would be the next support to eye and that 10291, the top made Tuesday, would work as immediate hurdle.

Nifty, after touching a low of 10036 in the initial trade, recovered to end at 10116 and is set to open near 10100 today.

10021, the low made Tuesday, continues to be immediate support, upon breach of which, 9944, the bottom made last Thursday, would be the next support to eye.

10291, the top made Tuesday, continues to be immediate hurdle.

The Supreme Court will today consider the issue of allowing telecom firms to pay the mammoth AGR dues worth Rs 1.43 lakh crore in a staggered fashion spread over 20 years.