Monday, June 30, 2014

PRUDENT MORNING MANTRA - 30.06.2014

NIFTY EXTENDS CONSOLIDATION TO THIRD WEEK

WORLD MARKETS

After trading in the negative territory for the better part of the day, US indices spike up in last half an hour to end with modest gains on Friday.

Thomson Reuters/University of Michigan's index on consumer sentiment for June rose to 82.5, up from 81.9 in May.

European markets ended mixed with modest changes. Data released on Friday confirmed that France's economy posted no growth in the first quarter of 2014 while Britain's GDP grew by 0.8%. Research body GfK had reported that British consumer confidence reached its highest since March 2005 this month, adding to signs the economy is recovering.

For the week, Dow and S & P 500 lost 0.6% and 0.1% respectively while Nasdaq gained 0.7%. European markets however, ended with deep cuts ranging from 1%-3%.

Tensions in Iraq also remain in focus after government forces attempted to dislodge militant insurgents from the northern city of Tikrit on Sunday.

AT HOME

Benchmark indices managed to end modestly higher after a choppy trading session, breaking a two-day losing streak. Sensex gained 37 points to settle at 25100 while Nifty finished at 7509, up 16 points. BSE mid-cap and small-cap indices gained 0.3% and 0.4% respectively. BSE Healthcare and IT indices surged 2.5% each, becoming top gainers among the sectoral indices while Metal and auto indices lost 1.3% and 0.5% respectively.

FIIs net bought stocks worth Rs 183 cr but net sold index futures and stock futures worth Rs 10 cr and 896 cr respectively. DIIs were net sellers to the tune of Rs 172 cr.

Rupee appreciated 5 paise to close at 60.08/$.

For the week, Sensex and Nifty closed almost flat.

OUTLOOK

Today morning, Asian markets are trading with modest gains and SGX Nifty is suggesting a marginally higher start for our market.


As mentioned in Friday's report, Nifty continues to be in a consolidation mode within a descending channel, a breach of which, on either side, is required for taking a fresh directional view. The upper and lower levels of this channel are currently placed around 7610 and 7410 respectively and would be important levels to watch out.

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