15886 ABOVE 15707; 15367 IS IMMEDIATE SUPPORT

 

15886 ABOVE 15707; 15367 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Helped by late-session rally, US indices rose 0.6%-1.6%, with Nasdaq on the top, as bond yields slipped.

 

U.S. weekly jobless claims fell 2,000 to 229,000 for the week ended June 18, though the labor market remains tight. The S&P Global’s headline factory PMI fell to a near two- year low of 52.0 from 54.6. Composite PMI Output Index dropped to 51.2 in June from a final reading of 53.6 in May.

 

UBS increased the chance of a recession to 69%, pointing to weak reports in housing, industrial production and capital goods. Citigroup raised the probability of a recession to 50%. Goldman Sachs raised the chances of a U.S. recession to 30%, up from 15%, over the next year.

 

US 10-year treasry yield dropped 7 bps to 3.089%. Dollar index inched up 0.2% to 104.40. Spot gold fell 0.8% to $1,822.64 per ounce.

 

Brent crude futures settled at $110.05 a barrel, falling $1.69, or 1.5%; WTI crude futures settled at $104.27 a barrel, down $1.92, or 1.8%.

 

European markets fell 0.6%-1.8%. The German composite PMI dropped to 52.0 in June from May’s 54.8, below a forecast of 54.0. France’s composite reading came in at 52.8, down from 57.0 in May. The broader euro zone PMI also dropped markedly to 51.9 in June from 54.8 in May.

 

AT HOME

 

Benchmark indices ended higher by 0.9% each after a roller-coaster session, recouping nearly two-third of yesterday's losses. Sensex settled at 52265, up 443 points while Nifty added 143 points to finish at 15556. Nifty mid-cap and small-cap indices rose 1.2% and 1.3% respectively. Except 0.5% and 0.3% lower Energy and Oil & Gas indices respectively, all the BSE sectoral indices ended higher, with Auto index being the top gainer, up 4.4%, followed by 2.4% higher Consumer Discretionary Goods & Services indices.

 

FIIs net sold stocks worth Rs 2319 cr but net bought index futures and stock futures worth Rs 853 cr and 1701 cr respectively. DIIs were net buyers to the tune of Rs 2438 cr.

 

Rupee appreciated 7 paise to end at 78.32/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.3%-1.1% and SGX Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that 15382, the lower end of the gap created by Tuesday's gap-up opening, was the immediate support, while 15707, the top made Tuesday, continued to be immediate hurdle.

 

Nifty, after touching a low of 15367, rebounded to end at 15556 and is set to open near 15650 today.

 

15707, the top made Tuesday, continued to be immediate hurdle, upon crossover of which, 15886, the top made last week, would be the next upside level to eye; 15367, the low made yesterday, is the immediate support.

 

For Banknifty, 32650, the low made yesterday, is the immediate support, below which, 32290, the low made last week, would be the next downside level to eye; 33600-33800 is the resistance zone.