19150-19200 BELOW 19303; 19523 IS IMMEDIATE HURDLE

 

19150-19200 BELOW 19303; 19523 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.1%-0.6% on Friday after digesting mixed non-farm payroll report.

 

June nonfarm payrolls rose by 209,000, lower than the expected 240000 figure. The unemployment rate came in at 3.6%, matching estimate and as against 3.7% in May. Average hourly earnings increased by 0.4% in June and 4.4% y-o-y.

 

U.S. 10-year treasury yield rose 4 bps to 4.07%. Dollar index tumbled 0.8% to 102.27. Gold rose 0.7% to $1925 per ounce. The yen surged 1.3% to 142.15, a two-week high against the U.S. currency, as the rise in U.S. 10-year Treasury’s yield above 4% heightened fears that Japan could intervene in currency markets.

 

Brent futures rose 2.6% to $78.47 a barrel and WTI crude rose 2.9% to $73.86.

 

In Europe, FTSE fell 0.3% while DAX and CAC gained 0.4% each.

 

Earlier, the Japanese labor ministry reported regular wages posted their largest annual increase in May since early 1995.

 

For the week, U.S. indices fell 0.9%-2%.

 

AT HOME

 

Sensex and Nifty plunged 0.8% each, snapping 7-session and 8-session winning streak respectively and posting the worst fall in 2-months. Sensex settled at 65280, down 505 points while Nifty lost 165 points to finish at 19331. Nifty mid-cap and small-cap indices fell 0.8% and 0.4% respectively. Nifty FMCG and Realty indices were the top losers among the sectoral indices, down 1.5% and 1.2% respectively while Media index surged 3.9% to become top gainer, followed by 1% higher PSU Bank index.

 

FIIs net bought stocks worth Rs 790 cr but net sold index futures and stock futures worth Rs 975 cr and 2371 cr respectively. DIIs were net sellers to the tune of Rs 2964 cr.

 

Rupee depreciated 23 paise to end at 82.74

 

Tata Motors share jumped after the company reported a sharp rise in its Jaguar-Land Rover sales during the April-June quarter.

 

For the week, Sensex and Nifty gained 0.9% and 0.7% respectively.

 

OUTLOOK

 

China’s consumer price index was flat in June y-o-y, its lowest level since February 2021. Producer prices fell 5.4% y-o-y, the fastest rate of decline since December 2015.

 

Today morning, Hang Seng and Shanghai are up 1.4% and 0.3% respectively but Nikkei is down 0.8%. GIFT Nifty is suggesting around 30 points higher start for our market.

 

In Friday's report we had said that 20071 continued to be next major target to eye while immediate support on the hourly chart had moved up to 19330, with the stop-loss of which, trading longs could be held on to.

 

Nifty fell to 19303 before closing at 19331.

 

19303, the low made Friday, is the immediate support on the hourly chart, below which, a rising trendline adjoining tops made since mid-May, would land support in 19150-19200 region; 19523, the top made on Friday, is the immediate hurdle.

 

For Banknifty, 44800 is the immediate support on the hourly chart, upon breach of which, 20-DMA, placed around 44300, would be next downside level to eye. On the way up, 45655, the top made during the week, is the immediate hurdle, upon crossover of which, 46400-46500 would be next target area.

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