18060 BELOW 18200; 18458 CONTINUES TO BE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.6%-0.8%, with the Dow extending the losing streak to fourth straight day, as lawmakers struggled to reach a deal on debt ceiling, heightening worries of a potential default.

 

House Speaker Kevin McCarthy, in a late-morning press conference, said that negotiators are struggling to agree on spending levels, but reiterated his confidence that both negotiating teams would reach an agreement.

 

Meanwhile, ratings agency Fitch put the United States’ AAA rating on negative watch.

 

Minutes of latest Fed meeting showed “uncertainty” from participants about whether to increase rates for an 11th time at its June meeting.

 

U.S. 10-year treasury yield rose 5 bps to 3.746%. Dollar index rose 0.4% to 103.89. Gold fell 0.9% to $1957 per ounce. 

 

Brent crude futures rose 1.8% to $78.24 a barrel and WTI futures gained 1.7% to $74.18 a barrel.

 

European markets tumbled 1.7%-2.4%. U.K. headline inflation fell from 10.1% to 8.7%, though was above estimate of 8.2%. Core CPI rose to 6.8% from 6.2%. Prices rose 1.2% month on month, above a forecast of 0.8%.

 

AT HOME

 

After a negative start, benchmark indices rebounded to trade higher by a fourth of a percent, only to fall again in noon trade and close lower by a third of a percent. Sensex settled at 61773, down 208 points while Nifty lost 62 points to finish at 18285. Nifty mid-cap index rose 0.2% while small-cap index ended flat. Nifty Metal and Financial Services indices fell 1.6% and 0.8% respectively, becoming top losers among the sectoral indices while Consumer Durables and Pharma indices were the top gainers, up 1.4% and 1% respectively.

 

FIIs net bought stocks worth Rs 1186 cr but net sold index futures and stock futures worth Rs 458 cr and 202 cr respectively. DIIs were net buyers to the tune of Rs 301 cr.

 

Rupee appreciated 14 paise to end at 82.66/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.3% but Hang Seng and Shanghai are down 1.5% and 0.2% respectively. SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 18458, the top made last week, continued to be immediate hurdle while 18250-18200 was the immediate support zone, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 18392, plunged to 18262 before closing at 18285. The benchmark is set to open near 18250 today.

 

18458, the top made last week, continues to be immediate hurdle; 18250-18200 continues to be immediate support zone, upon breach of which, 18060, the low made last week, would be next downside level to eye; Meanwhile, trading longs can be held on to with the stop-loss of 18200.

 

For Banknifty, 44151, the top made last week, continues to be immediate hurdle, upon crossover of which, 44800-44900 would be next target area. On the way down, 43500 is the immediate support, upon breach of which, 43000-42800 would be next support area.

 

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