LAST HALF AN HOUR REBOUND PUTS NIFT BACK ABOVE 7487
SUPPORT; 7560 IS IMMEDIATE RESISTANCE
WORLD MARKETS
Dow and S & P
500 ended a tad lower, breaking a 6-day rising streak while Nasdaq closed
marginally higher.
The sale of
previously-owned homes rose 4.9% in May to an annualized rate of 4.9 million,
versus a 1.5% gain the month before. Flash manufacturing PMI for June rose to
57.5 from 56.4 in May.
European markets
lost between 0.4%-1.3%. The euro zone PMI for June came in at 52.8 against
forecasts of 53.5. This marked a second consecutive monthly fall, rasing fears
that the recovery is losing momentum. The index also highlighted ongoing
divergence between the euro zone's two largest economies, with French activity
contracting further in June, while Germany's private sector continued to
expand.
However, basic
resources stocks, which have heavy exposure to China, ended higher, after
China's HSBC PMI showed the first expansion in six months.
U.S. Secretary of
State John Kerry traveled to Baghdad yesterday, where he pushed the Iraqi prime
minister to form a more inclusive government as it attempts to stem a Sunni insurgency
across much of the northern and western parts of the country.
Nymex crude lost
0.6% to $106.2a barrel; Gold rose 0.1% to $1318.4 an ounce.
AT HOME
Benchmark indices,
after plunging nearly a percent during the session, saw a smart rebound in last
half an hour to end lower by just a fourth of a percent. Sensex lost 74 points
to settle at 25031 while Nifty finished at 7493, down 18 points. BSE mid-cap
and small-cap indices in fact ended with gains of 0.6% each. BSE FMCG index
nosedived 4.1%, becoming top loser among the sectoral indices, followed by 1.6%
cut in the IT index. Oil & Gas and Metal indices gained 1.4% and 1.1%
respectively.
ITC plunged 6.2%,
marking owrst fall since May 19, 2009, on reports that the government may raise
taxes on cigarettes aggressively in the upcoming budget in July.
Sugar stocks soared
after the Food Minister Ram Vilas Paswan, in a move to bail out the ailing
sugar industry, allowed an import duty hike from 15% to 40%, extended sugar
export incentives till September 2014 and raised ethanol blending with petrol
to 10%.
FIIs net sold
stocks, index futures and stock futures worth Rs 214 cr, 15 cr and 457 cr
respectively. DIIs were net buyers to the tune of Rs 117 cr.
Rupee depreciated 2
paise to close at 60.20/$.
The Budget Session
will commence on July 7. The Economic Survey will be tabled on July 9 and the
General budget on July 10. Railway budget will be presented on July 8.
OUTLOOK
Today morning,
Asian markets, barring a 0.6% lower Nikkei, are trading with modest gains and
SGX Nifty is suggesting about 20 points higher opening for our market.
Nifty, after
breaking the 7487 support, tumbled to 7441 intraday, but saw a sharp rebound in
last half an hour to end at 7493, holding the 7487 level on closing basis.
The benchmark
however, continues to make lower-tops and lower-bottoms on the hourly chart and
a negation of this formation is required to put it back on the bull track.
Nearest resistance on the hourly chart is placed at 7560, upon crossover of
which next major hurdle to eye would be 7663, the top made last week.
On the way down,
7409 and 7340, the 50% and 61.8% retracement levels of the recent 7118-7700
upmove, continue to be support levels to eye.
Traders are advised
to wait for the crossover of 7560 for initiating fresh longs.
