NIFTY EXTENDS CONSOLIDATION; GOVERNMENT DEFERS GAS PRICE HIKE
WORLD MARKETS
After starting
lower on the back of weak GDP data and concerns over Iraq, US indices bounced
back to end with gains between 0.3%-0.7%.
The final reading
of the US first quarter GDP showed a contraction of 2.9%, a much steeper pace
than expected 1.7% decline. Separately, May durable goods orders unexpectedly
declined 1% on month while the services sector expanded at its fastest clip in
more than four years in June.
In Iraq, militants
yesterday seized control of the Balad airbase, one of the country's largest, as
well as the Ajeel oil site, located east of Tikrit. The attack came as Iraqui
Prime Minister said he supported the process of forming a new government by
July 1st.
Meanwhile in
Ukraine, Western powers warned Russia yesterday that they may impose new
sanctions if Moscow does not take more action to defuse the conflict in east
Ukraine
European markets
lost between 0.7%-1.3%.
Nymex crude rose
0.4% to $106.5 while gold rose 0.1% to $1322.6 an ounce.
AT HOME
Benchmark indices
ended marginally lower after trading in an extremely narrow range through the
trading session. Sensex lost 55 points to settle at 25314 while Nifty finished
at 7569, down 11 points. BSE mid-cap and small-cap indices however gained 0.5%
and 0.4% respectively. BSE Realty and Consumer Durable indices gained the most
among the sectoral indices, rising 0.9% each while Oil & Gas and Capital
Goods indices lost 0.8% and 0.7% respectively.
FIIs net bought
stocks and index futures worth Rs 695 cr and 178 cr respectively but net sold
stock futures worth Rs 509 cr. DIIs were net sellers to the tune of Rs 434 cr.
Rupee ended at
60.12/$, the previous close being 60.13/$.
Finance Minister
Arun Jaitley yesterday afternoon announced the extension of low excise duty for
auto, consumer durables and capital goods sector for six months till December
31.
OUTLOOK
In a setback to gas
producers like Reliance Industries, the government yesterday postponed revision
in natural gas prices by three months pending a "comprehensive"
review to make a controversial pricing formula more palatable. Reliance
Industries GDR ended lower by 2% on London Stock Exchange yesterday. Oil
minister also clarified that there is no plan to hike LPG and kerosene prices.
Today Morning,
Asian markets are trading with modest gains but SGX Nifty is suggesting a
marginally lower start for our market.
7540 continues to
be immediate support on the hourly chart below which 7441, the low made on
Monday would be the next support to eye.
On the way up, 7663
continues to be the immediate hurdle.
Broadly, Nifty
continues to be in a consolidation mode and traders would do well to keep
trading volumes low and wait for this consolidation to get over for taking a
fresh directional view on Nifty.
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