CONSOLIDATION CONTINUES

CONSOLIDATION CONTINUES

WORLD MARKETS

US indices climbed 0.8%-1.9%, cheering stronger-than-expected consumer confidence data.

Consumer confidence rose more than expected in June, to 98.1 vs. expectations of 90.8.

Fed Chair Powell, in testimony Tuesday before the House Financial Services Committee, warned that a rebound in the U.S. economy could stall if the spread of the coronavirus isn't contained.

Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, told a Senate panel that new cases of the virus in the United States could rise to 100,000 a day if behaviors don’t change.

Brent August futures fell 51 cents, or 1.2%, to $41.20 while WTI slid 1.1%, or 43 cents, to settle at $39.27 per barrel.

In Europe, FTSE and CAC fell 0.9% and 0.2% respectively while DAX rose 0.6%. The pan-European Stoxx 600 closed up by 0.25%, and was up almost 13% in the first quarter, marking its best quarter since the first quarter of 2015.

For the quarter, Dow, S & P 500 and Nasdaq soared 17.8%, 20% and 30.6% respectively, posting their best performance since 1987, 1998 and 1999 respectively. Oil too posted its best quarter in nearly 3 decades, with WTI and Brent rising nearly 98% and 60% respectively.

AT HOME

After rising nearly a percent in the initial trade, benchmark indices gave away all the gains through the session to end marginally in ther red. Sensex settled at 34915, down 45 points while Nifty lost 10 points to finish at 10302. BSE mid-cap and small-cap indices fell 0.1% and 0.8% respectively. BSE Oil & Gas index slipped 1.5%, becoming top loser among the sectoral indices, followed by 1.3% lower Energy and Telecom indices. Auto and Basic Materials indices were the top gainers, up 1% and 0.4% respectively.

FIIs net sold stocks worth Rs 2000 cr but net bought index futures and stock futures worth Rs 367 cr and 491 cr respectively. DIIs were net buyers to the tune of Rs 2051 cr.

Rupee appreciated 8 paise to end at 75.50/$.

For the month, Sensex and Nifty climbed 7.7% and 7.5% respectively.

India's core sector output contracted by 23.4% in May. On the positive side, India's current account registered a surplus of 0.1% of GDP for the fourth quarter of FY20.

OUTLOOK

Today, Hang Seng is shut while Shanghai and Nikkei are up 0.3% and 0.1% respectively. SGX Nifty is suggesting a marginally lower start for our market.

For past couple of days we have been saying that 10553 on the way up and 10194 on the way down are important resistance and support levels to eye respectively. Nifty has been trading within these levels for past three sessions.

Yesterday, after touching a high of 10401 in the initial trade, the benchmark slipped to end at 10302.

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 corssover 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.

Auto companies will report their June sales figures today.