15901 ABOVE 15770; 15450 CONTINUES TO BE IMMEDIATE SUPPORT

 

15901 ABOVE 15770; 15450 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices climbed 0.8%-1.8%, with the Dow posting its best day since March.

 

Two Fed officials said that a faster withdrawal from the central bank’s bond purchase program could give it more leeway in deciding when to raise interest rates. New York Fed President also said that more progress is needed before the Fed should begin to scale back some of its economic support.

 

US 10-year treasury yield rose 4 bps to 1.489% while that on the 30-year bond rose 7.6 bps to 2.104%. Dollar index fell 0.44% to 91.849, retreating from two-month highs. Spot gold rose 1.1% to $1,782.83 per ounce.

 

Brent futures gained 1.9% to settle at $74.90 per barrel while WTI rose 2.82% to $73.66 per barrel.

 

European markets gained 0.5%-1%.

 

Fed Chair Powell will testify before the House of Representatives today on the central bank’s response to the pandemic. His comments will be in focus to see if he confirms the hawkish outlook or tries to row back market expectations of faster tightening.

 

AT HOME

 

After falling more than a percent in the initial trade, benchmark indices surged a percent and half from the bottom to end higher by 0.4% each, with Nifty snapping a 3-day losing streak. Sensex settled at 52574, up 230 points while Nifty added 63 points to finish at 15746. Nifty mid-cap and small-cap indices gained 0.8% and 0.6% respectively. BSE Power and Realty indices climbed 2.6% and 2.4% respectively, becoming top gainers among the sectoral indices while Auto index was the top loser, down 0.5%, followed by 0.3% lower IT and Teck indices.

 

FIIs net sold stocks and index futures worth Rs 1245 cr and 478 cr respectively but net bought stock futures wroth Rs 74 cr. DIIs were net buyers to the tune of Rs 138 cr.

 

Rupee depreciated 24 paise to end at 74.10/$.

 

OUTLOOK

 

Today morning, Nikkei is up more than 2%, Shanghai is up nearly half a percent while Hang Seng is off 0.3%. SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 15450, the low made Friday, was the immediate support while 15770 was the immediate hurdle on the hourly chart.

 

Nifty, after touching a low of 15505, surged to touch a high of 15765 before closing at 15746.

 

15770 continues to be immediate hurdle, upon sustained trading above which, 15901, the top made last week, would be the next upside target.

 

15450, the low made Friday, continues to be important immediate support.