15450 BELOW 15659; 16200-16250 IS THE RESISTANCE ZONE

 

15450 BELOW 15659; 16200-16250 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.5% and 0.4% respectively while Nasdaq managed to gain 0.2%, awaiting the outcome of the Federal Reserve’s two-day policy meeting, which concludes on Wednesday.

 

US wholesale prices rose 10.8% in May. That’s near a record.

 

US 10-year treasury yield rose 11 bps to 3.483%, notching a high not seen since April 2011. Dollar index rose 0.3% to 105.48. Spot gold fell 0.4% to $1,811.59 per ounce.

 

Brent crude futures fell $1.10 or 0.9% to $121.17 and WTI crude slipped 1.6% to $119 per barrel. 

 

European markets fell 0.2%-1.2%. German inflation accelerated to a five-decade high of 7.9% in May. The U.K. unemployment rate rose slightly in the three months to April to 3.8%.

 

AT HOME

 

Benchmark indices ended lower by three tenth of a percent after a choppy session, extending the losing streak to third consecutive day and closing at the lowest level after July 2021. Sensex lost 153 points to settle at 52693 and Nifty finished at 15732, down 42 points. Nifty mid-cap and small-cap indices fell 0.2% and 0.6% respectively. BSE Energy and Oil & Gas indices were the top losers among the sectoral indices, down 1.2% and 1.1% respectively whereas Realty and Industrials indices were the top gainers, up 0.7% and 0.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 4502 cr, 342 cr and 226 cr respectively. DIIs were net buyers to the tune of Rs 3808 cr.

 

Rupee appreciated 5 paise to end at 77.99/$.

 

India's May WPI inflation came in at 15.88%, up from 15.08% in April. Core WPI eased to 10.50% from 11%.

 

OUTLOOK

 

Today morning, Nikkei is down 0.6% while Hang Seng and Shanghai are up nearly half a percent each. SGX Nifty is suggesting a modestly lower start for our market.

 

In yesterday's report we had said that 15671, the low made in March, was the important immediate support, while 16275 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

Nifty, after touching a low of 15659, closed at 15732.

 

15659, the low made yesterday, which roughly coincided with the 15671 bottom made in March, is the immediate support to eye, upon breach of which, 15450 would be next downside level to eye; 16200-16250 is the immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.

 

33000, the low made in May, is the immediate support for Banknifty, below which, 32155, the low made in March, would be the next downside level to eye; 34500 is immediate hurdle.