15511 IS THE IMMEDIATE SUPPORT; 16030 IMMEDIATE HURDLE

 

15511 IS THE IMMEDIATE SUPPORT; 16030 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices climbed 0.9%-1.1% on Friday as treasury yields extended fall after soft economic data, pricing in a less aggressive Fed rate hike in July.

 

ISM manufacturing index for June dropped to 53, the lowest reading since June 2020. ISM’s new orders index also fell to 49.2 from 55.1, showing contraction for the first time since May 2020.

 

US 10-year treasury yield fell nearly 12 bps to 2.889%, nearing its lowest level since late May. Dollar index rose 0.4% to 105.12. Gold inched up 0.2% to $1810 per ounce.

 

Brent crude rose $2.71, or 2.5%, to $111.74 a barrel and WTI crude gained $2.81, or 2.7%, to $108.57 a barrel.

 

In Europe, FTSE was flat while DAX and CAC gained 0.2% and 0.1% respectively. Euro zone inflation soared to a record high of 8.6% year-on-year in June.

 

China's Caixin/Markit manufacturing PMI for June came in at 51.7, up from last month's reading of 48.1 and above estimate of 50.1. The official PMI for June stood at 50.2, returning to growth after three months. Bank of Japan’s quarterly business sentiment survey posted a sharp decline in the April-June period.

 

For the week, Dow, S & P 500 and Nasdaq fell 1.3%, 2.2% and 4.1% respectively, posting their fourth down week in five. In Europe, FTSE fell 0.6% while DAX and CAC were down 2.3% each. In Asia, Nikkei fell 1.6% but Hang Seng and Shanghai rose 1.4% each and Nifty inched up 0.34%.

 

AT HOME

After falling more than a percent and half in first hour, benchmark indices recouped most of the losses through the session to end 0.2% lower, extending the losing streak to third straight day. Sensex settled at 52907, down 111 points while Nifty finished at 15752, down 28 points. Nifty mid-cap and small-cap indices gained 0.5% and 0.4% respectively. BSE Energy and Oil & Gas indices tumbled 4% and 3.2% respectively, becoming top losers among the sectoral indices while FMCG and Realty indices were the top gainers, up 2.5% and 1.6% respectively.

 

FIIs net sold stocks and index futures worth Rs 2325 cr and 543 cr respectively but net bought stock futures worth Rs 318 cr. DIIs were net buyers to the tune of Rs 1311 cr.

 

Rupee depreciated 8 paise to end at 79.05/$.

 

India’s S & P Global Manufacturing PMI fell to 53.9 in June from 54.6in May, marking the weakest pace of growth since last September.

 

For the week, Sensex and Nifty gained 0.3% each, extending the winning streak to second consecuvie week.

 

OUTLOOK

 

Today morning, Nikkei is up 0.8% while Hang Seng and Shanghai are down 0.5% and 0.2% respectively. SGX Nifty is suggesting a flattish start for our market.

 

In Friday's report we had said that 16030, around which 34-DMA was placed, continued to be immediate hurdle, while 15550 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a low of 15511, rebounded to end at 15752.

 

15511, the low made Friday, is the immediate support on the hourly chart, upon breach of which, 15367 and 15183, the bottoms made on 23rd and 17th June respectively, would be the next downside levels to eye; On the way up 34-DMA, placed around 16030, is the immediate hurdle, upon crossover of which, 16172, the upper end of the gap created by gap-down opening on 13th June, would be the next target; Meanwhile, trading longs can be held on to with the stop-loss of 15511.

 

For Banknifty, 34147, the top made last week, also coincided with 34-DMA and is the immediate hurdle to eye. Once that is taken out, 34346, the upper end of the gap created by gap-down opening on 13th June, would be the next upside level to eye; 33000 is the immediate support, below which, 32290, the bottom made on 17th June, would be the next downside level to eye.