NIFTY REBOUNDS FROM 15606 SUPPORT

 

NIFTY REBOUNDS FROM 15606 SUPPORT

 

WORLD MARKETS

 

Dow fell 0.6%, S & P 500 ended little changed while Nasdaq rose 0.9%

 

Initial jobless claims rose unexpectedly last week, totaling 412,000, an increase of 37,000 from the previous week and higher than the 360,000 estimate.

 

Dollar index rose 0.53% to 91.892, its highest since mid April. US 10-year treasury yield fell 5.3 bps to 1.516% while that on the 30-year Treasury dropped 9.6 bps to 2.113%.

 

Commodities prices declined sharply as China attempts to cool rising prices and the U.S. dollar strengthens. Brent crude oil futures dipped 2.4% to $72.56 per barrel, while WTI dipped 2.2% to $70.54. Spot gold fell 2% to $1,776.10 per ounce.

 

In Europe FTSE fell 0.4% while DAX and CAC gained 0.1% and 0.2% respectively. Euro zone inflation rose 0.3% month-on-month in May for a 2% annual increase on the back of higher energy and services prices, slightly exceeding the European Central Bank’s target.

 

AT HOME

 

Sensex and Nifty slipped 0.3% and 0.5% respectively, extending the losing streak to second consecutive day. Sensex settled at 52323, down 178 points while Nifty lost 76 points to finish at 15691. Nifty mid-cap and small-cap indices tumbled 1.2% and 0.5% respectively. BSE Power and Metal indices plunged 2.4% and 2.2% respectively, becoming top losers among the sectoral indices while IT and Teck indices were the top gainers, up 0.9% and 0.6% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 880 cr, 378 cr and 460 cr respectively. DIIs were net buyers to the tune of Rs 45 cr.

 

Rupee depreciated 76 paise to end at 74.08/$.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 0.8% and 0.3% respectively while Shanghai is flat. SGX Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that 15606, the bottom made on Monday, was the immediate support to eye, while 15900, the top made on Wednesday, continued to be immediate hurdle.

 

Nifty, after touching a low of 15616, closed at 15691 and is set to open near 15750 today.

 

15606, the low made Monday, continues to be immediate support, upon breach of which, 15460, the bottom made on 2nd June, would be the next downside level to eye.

 

15900, the top made last week, continues to be the hurdle to eye.