16172 ABOVE 15886; 15367 IS IMMEDIATE SUPPORT

 

16172 ABOVE 15886; 15367 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices surged 2.7%-3.3% on Friday after a consumer sentiment reading that’s closely followed by the Federal Reserve showed a slight easing of inflation expectations.

 

University of Michigan's Consumer sentiment hit a record low reading of 50 in June. A figure inside the report showed 12-month inflation expectations by consumers easing back to 5.3%.

 

US 10-year treasury yield rose around 4 bps to 3.134%. Dollar index fell 0.3% to 104.12. Spot gold rose 0.2% to $1,826 per ounce.

 

Brent crude rose $3.07, or 2.8%, to $113.12 a barrel and WTI crude settled up $3.35, or 3.2%, at $107.62.

 

European markets rose 1.6%-3.2%. U.K. retail sales fell 0.5% month-on-month in May, slightly less than the -0.7% projected. U.K. consumer confidence fell to its lowest level since records began. The Ifo Institute’s business climate index for Germany fell to 92.3 in June from 93.0 in May. Spanish economy expanded by 0.2% in the first quarter of 2022, slowing from a growth rate of 2.2% in the last quarter of 2021.

 

For the week, US indices surged 5.4%-7.5%, posting their first positive week since May.

 

AT HOME

 

Benchmark indices climbed 0.9% each, repeating yesterday's 0.9% upmove. Sensex settled at 52727, up 462 points while Nifty added 142 points to finish at 15699. Nifty mid-cap and small-cap indices climbed 1.4% and 1.8% respectively. Except 0.6% and 0.2% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green, with Telecom and Auto indices leading the tally, up 2.5% and 2% respectively.

 

Rupee depreciated 5 paise to end at 78.35/$.

 

For the week, Sensex and Nifty gained 2.7% and 2.6% respectively, snapping a 2-week losing streak.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-1.8% with Hang Seng on the top. SGX Nifty is suggesting around 150 points higher start for our market.

 

In Friday's report we had said that 15707, the top made Tuesday, continued to be immediate hurdle, upon crossover of which, 15886, the top made previous week, would be the next upside level to eye. We had also said that 15367, the low made Thursday, was the immediate support.

 

Nifty touched a high of 15749 before closing at 15699 and is set to open above 15800 today.

 

15886, the lower end of the gap created by gap-down opening on 13th June, is the immediate upside level to eye, above which, 16172, the upper end of this gap, would be the next target; 15367, the low made last week, is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, above last week’s high of 33774, 34346, the upper end of the gap created by gap-down opening on 13th June, would be the next upside level to eye; 32650, the low made last week, is the immediate support, with the stop-loss of which, trading longs can be held on to.