NIFTY CONTINUES TO CONSOLIDATE IN A NARROW CHANNEL
WORLD MARKETS
US indices, after
opening with cuts of nearly three fourth of a percent, recovered through the
session to end just marginally lower.
St. Louis Fed
President James Bullard suggested interest rates could rise sooner rather than
later. Also weighing on sentiment was data showing that U.S. consumer spending
rose less than expected in May, which led many economists to pare back growth
forecasts for the second quarter.
Jobless claims declined by 2,000 to 312,000 last week, in line with
expectations.
European markets,
except a flattish FTSE, ended with cuts in the vicinity of half a percent with
shares in Barclays and Standard Chartered ending the day sharply down following
news of a lawsuit and a profit warning respectively.
AT HOME
Benchmark indices
plunged a percent with Nifty closing at the lowest level since 5th June. Sensex
slipped 251 points to settle at 25063 while Nifty finished at 7493, down 76
points. BSE mid-cap and small-cap
indices lost 0.3% each. BSE Oil & Gas index plunged 3.9%, becoming top
loser among the sectoral indices, followed by 2.7% cut in Realty index. Capital
Goods and Consumer Durable indices gained 0.9% and 0.7% respectively.
FIIs net sold
stocks and stock futures worth Rs 602 cr and 1313 cr respectively but net
bought index futures worth Rs 154 cr. DIIs were net buyers to the tune of Rs
171 cr.
Rupee depreciated 2
paise to close at 60.14/$.
OUTLOOK
Today morning,
Asian markets are trading flat to modestly lower but SGX Nifty is suggesting a
marginally higher start for our market.
In yesterday's
report we had mentioned that 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.
That continues to
be advice as Nifty continues to consolidate within a narrow channel, making
lower tops and bottoms. A breakout from this channel is required for a fresh
directional view on Nifty. The upper and lower levels of this channel are
currently placed around 7615 and 7410 respectively and would be the important
levels to watch out.
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