15915 CONTINUES TO BE IMMEDIATE HURDLE; 15750 IMMEDIATE SUPPORT

 

15915 CONTINUES TO BE IMMEDIATE HURDLE; 15750 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 inched up 0.1% each while Nasdaq fell 0.2% after Fed Chair Powell reassured that the central bank would continue its accommodative monetary policy despite a spike in inflation readings.

 

Federal Reserve Chair Jerome Powell — in testimony to the House Committee on Financial Services — said the U.S. job market “is still a ways off” from the progress the Fed wants to see before reducing its support for the economy, while current high inflation will ease in the coming months.

 

June Producer Price Index jumped 7.3% y-o-y, versus an estimate of 6.7%.

 

On the earnings front, Citigroup reported a profit beat while Bank of America narrowly missed revenue expectations.

 

The yield on the benchmark 10-year Treasury note fell 6 basis points to 1.36%. Dollar index slipped 0.4% to 92.428. Spot gold jumped a percent to $1,824.75 per ounce.

 

Brent crude slipped 2.3% to $74.76 per barrel and WTI settled 2.8% lower at $73.13 per barrel on reports that Saudi Arabia and UAE had reached a compromise that should unlock an OPEC+ deal to boost global oil supplies and government data showed implied U.S. gasoline demand declining considerably last week.

 

In Europe, FTSE slipped half a percent while DAX and CAC ended flat. UK June consumer price index grew 0.5% month-on-month versus a 0.2% consensus estimate. Eurozone industrial output unexpectedly fell by 1% against expectation of 0.2%.

 

AT HOME

 

Benchmark indices inched up a fourth of a percent each, with Nifty extending the winning streak to third straight day. Sensex added 134 points to settle at 52904 while Nifty finished at 15853, up 41 points. Nifty mid-cap and small-cap indices rose 0.2% and 0.4% respectively, to notch record highs. BSE IT and Teck indices climbed 2.2% and 1.9% respectively, becoming top gainers among the sectoral indices while Realty and Oil & Gas indices were the top losers, down 1% and 0.8% respectively.

 

FIIs net sold stocks worth Rs 1304 cr but net bought index futures and stock futures worth Rs 278 cr and 45 cr respectively. DIIs were net buyers to the tune of Rs 1336 cr.

 

Rupee depreciated 9 paise to end at 74.58/$.

 

Infosys posted mixed results with a beat on revenue front while margin and profit were a miss. The company hiked FY22 revenue growth guidance to 14-16% from 12-14%.

 

OUTLOOK

 

Today morning, Nikkei is down 0.7% while Hang Seng and Shanghai are up 0.6% and 0.1% respectively. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 15915, the top made in June, which was again tested on 6th July, was the next resistance to eye.

 

Nifty, after touching a high of 15877, closed at 15854.

 

15915 continues to be the upside hurdle to eye, upon crossover of which 16200 would be the next upside target.

 

15750 is the immediate support on the hourly chart, below which, 15632, the bottom made last week, would be the crucial support.

 

Wipro will report its quarterly earnings today.