8064 IS THE IMMEDIATE SUPPORT, 8213 IMMEDIATE HURDLE

8064 IS THE IMMEDIATE SUPPORT, 8213 IMMEDIATE HURDLE

WORLD MARKETS                             

US indices, after falling nearly a percent in the initial trade, rebounded nearly a percent and half from the bottom of the day to end with gains of 0.2%-0.5%, breaking the five day losing streak.

Telecom stocks were the top gainers while energy was the only loser as oil fell $1.80 or 3.75% to $46.21 a barrel. Brent fell 3.6% to $47.19.

The 10-year treasury yield after following to 1.518, its lowest since August 2012, recovered to trade near 1.57%.

Gold gained $10 to $1298 an ounce.

European markets too recovered from lower levels to end with cuts of 0.3%-1%. European car sales rose 16% in May.

Earlier Nikkei tumbled 2.2% and yen hit 103.58, its strongest level since August 2014, after the Bank of Japan did not offer additional monetary stimulus.

AT HOME

After plunging more than a percent and half in the morning trade, benchmark indices recouped nearly half of the losses in the noon trade to end lower by about eight tenth of a percent. Sensex lost 201 points to settle at 26525 while Nifty finished at 8141, down 66 points. BSE mid-cap and small-cap indices lost 0.4% and 0.6% respectively. Except a 0.4% rise in Metal index, all the BSE sectoral indices ended in red with Telecom index and Bankex leading the tally, down 2.2% and 1.4% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 157 cr, 439 cr and 112 cr respectively. DIIs were net sellers to the tune of Rs 163 cr.

Rupee depreciated 6 paise to end at 67.21/$.

India's current account deficit for the Jan-March quarter narrowed to USD 0.3 bn, a 0.1% of the GDP from $7.1 bn in the previous quarter.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.5%-1.5% with Nikkei leading and SGX Nifty is suggesting about 50 points higher start for our market.

In yesterday's report we had mentioned that while existing longs can be held on to with the stop loss of 8130, traders would do well to keep volumes low on account of the looming Brexit vote and 8295 hurdle.

The benchmark, in a volatile session, plunged all the way to 8074 and then rebounded to end at 8141 yesterday and is set to open with 50 points positive gap today.

In past couple of sessions, Nifty has repeatedly taken support around 8064 bottom made on Monday. In that sense 8064 is the important immediate support to eye, upon breach of which 34-DMA, placed around 7990, would be the next major target to eye.

On the way up, 8213, the top made on Wednesday, is the immediate hurdle above which 8295, the top made last week, would be the bigger hurdle to tackle.