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.
Nicr
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