NIFTY HOLDS 7441 SUPPORT; CPI EASES TO 2-½ YEAR LOW
WORLD MARKETS
US indices gained between 0.5%-0.7% yesterday with the Dow reclaiming 17,000 mark and posting an intraday record, as investors welcomed better-than-projected earnings from Citigroup and a bout of corporate takeovers.
Citigroup gained after reporting quarterly results and after agreeing to pay $7 billion to settle government claims related to misselling of mortgage-backed bonds ahead of the 2008 financial crisis.
European markets gained between 0.4%-1.2%. Euro zone industrial output fell 1.1% month-on-month in May which was the largest drop since September 2012.
Gold fell 2.2% to $1308 an ounce. Nymex crude rose 0.1% to $100.9 a barrel.
AT HOME
Benchmark indices ended a tad lower after a rangebound but choppy trading session, extending the losing streak to fifth straight session. Sensex lost 17 points to settle at 25007 while Nifty finished at 7454, down 5 points. BSE mid-cap index lost 0.02% while the small-cap index fell 0.5%. BSE Consumer Durable and IT indices lost 2.2% and 1.3% respectively, becoming top losers among the sectoral indices while Capital Goods and Metal indices gained 1.1% and 1% respectively.
FIIs net sold stocks worth Rs 558 cr but net bought index futures and stock futures worth Rs 503 cr and 196 cr respectively. DIIs were net buyers to the tune of Rs 332 cr.
Rupee depreciated 14 paise to close at 60.07/$.
India's WPI inflation for June came in at four month low of 5.43% as against 6.01% in May. The figure for April however was revised upwards to 5.55% from 5.2%.
The CPI based inflation for the month of June came in at a 30-month low of 7.31% compared to 8.28% in May, helped mainly by a moderation in food prices. Core CPI inflation too eased to 7.3% from 7.74%.
OUTLOOK
Today morning, Asian markets are trading with gains between 0.5%-1% and SGX Nifty is suggesting about 30 points higher opening for our market.
In yesterday's report we had reiterated that 7441 continues to be an important support, a breach of which can take Nifty to around 7200. In yesterday's trade, Nifty, after touching a low of 7422, recovered to close at 7454, holding the 7441 support on closing basis.
7441 continues to be important support to eye. Immediate resistance on the hourly chart has moved lower to 7600, a crossover of which is required to generate a buy signal on the hourly chart.
Federal Reserve Chair Janet Yellen's two-day congressional testimony starts today and markets would watch out for clues on the outlook for U.S. monetary policy.
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