9420 BELOW 9470; 9615 CONTINUES TO BE IMMEDIATE HURDLE

9420 BELOW 9470; 9615 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS                             

Dow and S & P 500 fell 0.8% each while Nasdaq plunged 1.4% as technology stocks plunged.

Treasury yields extended the upmove with the benchmark 10-year note yield trading near 2.26%.

The U.S. economy grew at an annualized rate of 1.4% in the first quarter, according to the Commerce Department's final first-quarter GDP read. Weekly jobless claims came in at 244,000 for last week, slightly above the expected 240,000.

Dollar index fell more than half a percent to 95.56, touching a fresh nine month low.

Extending the upmove to sixth session, WTI oil rose 19 cents to $44.93 and Brent added 11 cents to $47.42 following news of a drop in weekly U.S. production.

European markets tumbled 0.5%-1.9%. The euro continued to rise, trading at $1.1429 following ECB President Draghi's hawkish comments earlier in the week. Consumer inflation in Germany for June came in above expectations at 1.5% on year, compared with the 1.3% forecast.

AT HOME

After rising about nine tenth of a percent in the morning session, benchmark indices gave away most of the gains in noon trade to end just marginally higher on the expiry day of the June derivative series. Sensex settled at 30857, up 23 points while Nifty gained 13 points to finish at 9504. BSE mid-cap and small-cap indices gained 0.3% and 1% respectively. BSE Metal and Basic Material indices climbed 2.2% and 1.2% respectively, becoming top gainers among the sectoral indices while Energy index was the top loser, down 0.2%, followed by 0.1% down Healthcare index and Bankex.

FIIs net sold stocks, index futures and stock futures worth Rs 1141 cr, 551 cr and 477 cr respectively. DIIs were net buyers to the tune of Rs 600 cr.

Rupee depreciated 8 paise to end at 64.63/$, marking one-month low.

For the June derivative series, Nifty ended marginally lower, losing 6 points compared to May derivative series.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-1% and SGX Nifty is suggesting about 15 points lower start for our market.

In yesterday's report we had reiterated that 9615, the top made on Tuesday, is the immediate hurdle, a crossover of which is required for a fresh upmove.

The benchmark, after touching a high of 9575, slipped to end at 9504 and is set to open further lower today.

9470, the double-bottom made during the week, continues to be immediate support to eye below which 9420 would be the next downside target. 9615 continues to be immediate hurdle.

India’s biggest indirect tax reform, the Goods and Services Tax will roll out at today midnight. The launch will take place at the central hall of Parliament

9470 IS THE IMMEDIATE SUPPORT; 9615 NEAREST HURDLE

9470 IS THE IMMEDIATE SUPPORT; 9615 NEAREST HURDLE

WORLD MARKETS                             

US indices surged 0.7%-1.4% yesterday with the S & P 500 posting its biggest 1-day gain in 2 months as bank stocks surged and technology stocks rebounded from Tuesday's sell-off.

Bank stocks climbed ahead of the release of the Federal Reserve's stress test results where several big banks were expected to come out with substantial increases in return to shareholders.

Also contributing gains were reports that the European Central Bank tried to walk back hawkish remarks made by ECB President Mario Draghi a day earlier. The euro came off session highs following the news.

US mortgage applications fell 6% last week, while pending home sales fell for the third straight month in May.

European markets, except a 1.2% higher Italy, lost 0.2%-0.6%

Back in the US, bank stocks rose further in extended trading after results of stress test showed the Fed had approved the capital return plans of all 34 banks.

AT HOME

Sensex and Nifty lost 0.4% and 0.2% respectively to close at fresh one-month low. Sensex lost 124 points to settle at 30834 while Nifty finished at 9491, down 20 points.  BSE mid-cap and small-cap indices however gained 0.2% and 0.1% respectively. BSE Energy and Consumer Durable indices tumbled 1.4% and 1.2% respectively, becoming top losers among the sectoral indices while Metal and Telecom indices were the top gainers, up 1.6% and 1.1% respectively.

FIIs net sold stocks and index futures worth Rs 469 cr and 902 cr respectively but net bought stock futures worth Rs 795 cr. DIIs were net buyers to the tune of Rs 169 cr.

Rupee depreciated 3 paise to end at 64.55/$.

Union Cabinet yesterday approved setting up a committee to explore various options including strategic divestment of the loss-making Air India and its five subsidiaries. The committee will also study and suggest ways to treat the unsustainable debt of Air India; hiving off certain assets to a shell company and demerger and strategic divestment of the airline’s profit-making subsidiaries.

Cabinet also approved the recommendations put up by the Finance Secretary Ashok Lavasa-led committee in April on HRA and other allowances effective which will have combined additional financial impact of around Rs 30,748 crore a year.

OUTLOOK

Today morning Asian markets are trading with gains of upto 0.9% and SGX Nifty is suggesting about 30 points higher start for our market.

After Nifty broke the 9560 support, we had given downside target of 9470-9420. Nifty, on Tuesday touched a low of 9473 and retested this level yesterday before closing at 9491 and is set to open higher today.

9473, where a double bottom as well as the trendline support adjoining bottoms made in May is placed, is the immediate support to eye. 9420 would be the next downside target below 9473.

9615, the top made on Tuesday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. 9710 would be the next big hurdle above 9615.

NIFTY ACHIEVES 9470 TARGET AFTER BREAKING 9560 SUPPORT

NIFTY ACHIEVES 9470 TARGET AFTER BREAKING 9560 SUPPORT

WORLD MARKETS                             

Dow and S & P 500 fell 0.5% and 0.8% respectively while Nasdaq plunged 1.6% as technology stocks sold-off and Senate delayd a vote to repeal and replace obamacare.

Senate Majority Leader said that the health-care vote would be delayed until after July 4. President Trump has repeatedly said he wants to repeal and replace Obamacare before moving on to other items on his agenda, including tax reform.

Shares of Google-parent Alphabet declined more than 2% after the EU fined Google a record $2.7 billion, as regulators ruled the company violated antitrust rules.

Yellen said banks are "very much stronger," adding that another financial crisis is not likely in our lifetime. Philadelphia Fed President Patrick said he sees the Fed on track to raise rates once more this year.

In economic news, consumer confidence for June topped expectations, hitting 118.9.

ECB President Mario Draghi said that the central bank could potentially "adjust" its policy in response to "improving economic conditions."

The euro traded at a ten-month high against the dollar following the comments. Dollar index tumbled nearly a percent to 96.47, marking a nine and a half month low.

WTI crude rose 86 cents or 2% to $44.24. Brent added 33 cents to $46.16.

European markets fell 0.2%-1%

AT HOME

Benchmark indices plunged about six tenth of a percent to close at one-month low. Sensex lost 180 points to settle at 30958 while Nifty finished at 9511, down 64 points.  BSE mid-cap and small-cap indices tumbled 0.8% and 1.6% respectively. Except a 1.2% and 0.3% higher Telecom and Consumer Durable indices respectively, all the BSE sectoral indices ended in red with Bankex and Realty indices leading the losses, down 1.4% each.

FIIs net bought stocks and index futures worth Rs 292 cr and 621 cr respectively but net sold stock futures worth Rs 41 cr. DIIs were net sellers to the tune of Rs 149 cr.

Rupee depreciated 2 paise to end at 64.54/$.

OUTLOOK

Today morning, Asian markets are trading with modest cuts and SGX Nifty is suggesting about 20 points lower start for our market.

In yesterday's report we had mentioned that 9560, the immediate previous bottom on the daily chart, which also coincides with 34-DMA, is important support below which Nifty can slide to 9470-9420 region which is the next support area.

The benchmark broke 9560 support and plunged all the way to 9473 before closing at 9511, vindicating our view.

9470, where trendline adjoining bottoms made in May is placed, is the immediate support below which 9420 would be the next target to eye.

Immediate resistance on the hourly chart is placed around 9615, with the stop-loss of which, trading shorts can be held on to.

9560-9710 CONTINUES TO BE IMMEDIATE RANGE

9560-9710 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS                             

Dow and S & P 500 ended marginally in the green while Nasdaq lost 0.3% yesterday as technology stocks fell whille financials were up. Dow snapped a five-day losing streak.

Bank stocks rose after the Italian government said it reached a deal to wind up Popolare di Vicenza and Veneto Banca, two regional banks.

Durable goods fell 1.1% in May, more than the expected 0.6% drop. Treasury yields eased following the data.

U.S. crude rose 0.9% to settle at $42.38 a barrel

European markets gained 0.3%-0.8%.  The Institute for Economic Research's overall German business climate index unexpectedly improved to hit 115.1 in June, up from the previous record high of 114.6 in May.  

AT HOME

Benchmark indices fell about half a percent, extending losing streak to fourth consecutive day. Sensex lost 153 points to settle at 31138 while Nifty finished at 9575, down 55 points. BSE mid-cap and small-cap indices nosedived 1.2% and 1.5% respectively. All the BSE sectoral indices ended in red with Auto and Industrial indices leading the losses, down 1.5% and 1.4% respectively.

FIIs net bought stocks and index futures worth Rs 270 cr and 898 cr respectively but net sold stock futures worth Rs 251 cr. DIIs were net sellers to the tune of Rs 122 cr.

Rupee appreciated 8 paise to end at 64.52/$.

For the week, Sensex gained 0.3% but Nifty fell 0.1%.

Indian Prime Minister Modi met US President Trump at White House yesterday and both the leaders vowed to work more closely on issues such as combating terrorism, the war in Afghanistan and defense cooperation. In his statement Trump said "I would say the relationship between India and the United States has never been stronger, has never been better," and added that "I look forward to working with you, Mr. Prime Minister, to create jobs in our countries, to grow our economies and to create a trading relationship that is fair and reciprocal,".

OUTLOOK

Today morning, Asian markets are trading flat to modestly higher and SGX Nifty is trading around 9625, suggesting about 35 points higher start when compared to Friday's close of Nifty future.

In Friday's report we had mentioned that 9560, the immediate previous bottom on daily chart, which roughly coincides with the 34-DMA, is the important immediate support to eye, a breach of which would pave the way for further correction.

Nifty touched a low of 9565 on Friday and closed at 9575 but is set to open higher today.

9560 continues to be important immediate support below which 9470-9420 would be the next support area.

9710, the top made on 6th June, continues to be important hurdle, a crossover of which is required for a fresh upmove.

NIFTY RETREATS FROM 9710 HURDLE; 9560 IMPORTANT SUPPORT

NIFTY RETREATS FROM 9710 HURDLE; 9560 IMPORTANT SUPPORT

WORLD MARKETS                             

Dow and S & P 500 ended marginally in the red while Nasdaq was a tad higher as healthcare stocks gained while financials fell.

Healthcare stocks have been rising as Senate is set to consider health care bill next week which seeks to repeal and replace obamacare. The bill would continue to offer reimbursements to health insurance companies for subsidies for at least two years. It would also do away with current Obamacare taxes and would phase out Medicaid's expansion program.

Crude rebounded from a 10-month low with Brent up 40 cents at $45.22 a barrel and US crude up 21 cents at $42.74.

In Europe, FTSE lost 0.1% while DAX and CAC gained 0.2% each. Italy fell 0.7%.

AT HOME

After gaining two-third of a percent in the morning session, benchmark indices nosedived in noon trade to end flat. Sensex settled at 31291, up 7 points while Nifty lost 4 points to finish at 9630. Broader market underperformed, with BSE mid-cap and small-cap indices falling 0.6% each. BSE Oil & Gas and Realty indices tumbled 1.8% and 1.7% respectively, becoming top losers among sectoral indices while Bankex and Finance indices were the top gainers, up 0.2% each.

FIIs net bought stocks and index futures worth Rs 193 cr and 89 cr but net sold stock futures worth Rs 101 cr. DIIs were net sellers to tune of Rs 455 cr.

Rupee depreciated 7 paise to end at 64.59/$.

Indian IT services industry body National Association of Software and Services Companies (Nasscom) today said it expects software export growth to slow to 7-8% in the current financial year from 8.6% a year earlier.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that we have been saying that 9710, the top made on 6th June, is the important hurdle, a crossover of which is required for a fresh upmove.

Yesterday, Nifty, after touching a high of 9699, plunged sharply to end at 9630.

9560, the bottom made last week, which now roughly coincides with 34-DMA, is the important support, a breach of which will also confirm a lower-top lower-bottom on the daily chart and would pave the way for further correction.

Traders are advised to wait for the breach of 9710-9560 range on either side for taking a fresh view.

Two-day EU Summit begins today with focus on two objectives: strengthening the EU and protecting its citizens. Therefore key topics set to arise include terrorism, security, globalization and climate change. British Prime Minister Theresa May is expected to make an appearance at the summit, where she is likely to inform other leaders of the U.K.'s intentions when it comes to exiting the political-economic bloc.

NIFTY REBOUNDS FROM 9610 SUPPORT

NIFTY REBOUNDS FROM 9610 SUPPORT

WORLD MARKETS                             

Dow and S & P 500 fell 0.3% and 0.1% respectively while Nasdaq gained 0.7% as healthcare stocks gained but energy stocks fell.

Oil extended the fall despite the Energy Information Administration announcing that U.S. crude inventories decreased by 2.5 million barrels. WTI crude tumbled 2.3% to settle at $42.53 a barrel, it's lowest since August.

Mortgage applications rose 0.6% as interest rates remained low. Existing homes sales unexpectedly rose in May to the third highest monthly level in a decade, up 1.1% to a seasonally adjusted rate of 5.62 million units.

European markets, except a 1.3% higher Italy, lost 0.3%-0.4%.

AT HOME

After falling about half a percent, benchmark indices recouped most of the losses to end just modestly lower. Sensex settled at 31284, down 14 points while Nifty lost 20 points to finish at 9634. BSE mid-cap and small-cap indices gained 0.04% and 0.1% respectively. BSE Metal index tumbled 1.2%, becoming top loser among the sectoral indices, followed by 0.7% cut in Auto index. FMCG and Realty indices were the top gainers, up 0.7% and 0.5% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 153 cr, 91 cr and 1100 cr respectively. DIIs were net sellers to the tune of Rs 41 cr.

Rupee depreciated 3 paise to end at 64.52/$.

SEBI yesterday said that it would ease the takeover process for banks under the recently-introduced bankruptcy code from its strict share pricing rules, adding that such transactions will be governed only by RBI regulations. SEBI also tightened norms on P-notes and said it would levy fees on investments via P-notes.

Minutes from the RBI's latest policy meeting showed that the monetary policy committee welcomed data showing inflation easing below its target, but wanted more assurance the trend would continue before deciding whether to lower interest rates.

Karnataka government yesterday became the fourth state to waive off farmer loans. The state's Chief Minister Siddaramaiah tweeted that the government will waive off loans of up to Rs 50,000 given to farmers until June 20 by co-operative banks.

OUTLOOK

Today morning, Asian markets are trading flat to modestly higher and SGX Nifty is suggesting about 15 points higher start for our market.

In yesterday's report we had mentioned that 9610 is the immediate support on the hourly chart below which 9560, the bottom made last week, would be the important support to eye. 

Nifty, after touching a low of 9609, rebounded to close at 9634 and is set to open higher today.

9610 continues to be immediate support below that, as mentioned above, 9560 would be the important support to eye.

9710, the top made on 6th June, continues to be immediate hurdle, above which 9850 would be the next target.

9710-9560 IS THE IMMEDIATE RANGE

9710-9560 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

US indices fell 0.3%-0.8% as falling oil pressured energy stocks.

WTI crude tumbled 2.2% to $43.23 a barrel following news of an increase in production from Libya and Nigeria, completing 20% fall from its 52-week high .

House Speaker Paul Ryan, talKing on tax reforms, said the government is cutting back on regulatory red tape and that changes to the tax code must be permanent.

Boston Fed President said the current low-rate environment was likely to remain for some time, adding that low rates handicap the central bank's ability to "offset negative shocks."

Treasury yields traded lower, with the benchmark 10-year yield slipping to 2.15% and the two-year yield near 1.35%.

European markets lost 0.3%-1%. Pound sterling fell to a two-month low after Bank of England Governor said the central bank would not be raising interest rates anytime soon due to uncertainty surrounding Brexit.

MSCI said it will add 222 China A Large Cap stocks in a phased manner beginning next year.

AT HOME

Benchmark indices ended marginally in the red after trading in a narrow range. Sensex settled at 31297, down 14 points while Nifty lost 4 points to finish at 9653. BSE mid-cap and small-cap indices however managed to gain 0.2% each. BSE IT and Consumer Durable indices gained 1% each, becoming top gainers among the sectoral indices. Utilities, Finance and Consumer Discretionary Goods & Services indices were the top losers, down 0.3% each.

FIIs net sold stocks and stock futures worth Rs 313 cr and 480 cr respectively but net bought index futures worth Rs 321 cr. DIIs were net buyers to the tune of Rs 477 cr.

Rupee depreciated 7 paise to end at 64.49/$.

OUTLOOK

Today morning, except a 0.3% higher Shanghai, other Asian markets are trading with cuts of 0.2%-1% and SGX Nifty is suggesting about 40 points lower start for our market.

After Nifty crossed the immediate hurdle of 9650, we had said that 9710, the top made on 6th June, is the immediate target above which 9850 would be the next target to eye.

Nifty, after touching a high of 9676, closed at 9653 yesterday and is set to open around 9610 today.

9610 is the immediate support on the hourly as well as daily chart, below which 9560, the bottom made last week, would be the next support to eye.

9710 continues to be immediate hurdle, a crossover of which is required for a fresh upmove.

NIFTY TAKES OUT 9650 HURDLE; STAY LONG WITH THE STOP-LOSS OF 9610

NIFTY TAKES OUT 9650 HURDLE; STAY LONG WITH THE STOP-LOSS OF 9610

WORLD MARKETS                             

US indices soared 0.7%-1.4% with Dow and S & P 500 closing at record high. Nasdaq gained the most among 3 as technology stocks recovered from last week's sell-off. 

Also lifting investor sentiment were the results from the French parliamentary election, which ended with Emmanuel Macron's party clinching a majority.

New York Fed President William Dudley said inflation should rise as the labor market improved, which would allow the Federal Reserve to proceed with plans to tighten monetary policy.

Treasury yields erased earlier losses following Dudley's statement, with the benchmark 10-year yield climbing to 2.19%. Dollar index gained about a third of a percent to 97.45.

WTI crude fell 1.2% to $44.20 per barrel, marking a fresh seven month low. Brent lost 40 cents to $46.97.

European markets gained 0.4%-1.1%, shrugging off two terror attacks in London and Paris. Brexit negotiations began yesterday between the U.K. and the European Union, with the U.K.'s Brexit Secretary saying he hoped for a "strong and special partnership."

AT HOME

Sensex and Nifty soared 0.8% and 0.7% respectively, rising the most since 26th May. Sensex added 255 points to settle at 31312 while Nifty finished at 9658, up 70 points. Broader market however underperformed with BSE mid-cap index up just 0.1% and small-cap index down 0.1%.  BSE Metal index and Bankex were the top gainers among the sectoral indices, rising 1.9% and 1% respectively. Healthcare and Realty indices were the top losers, down 0.5% and 0.3% respectively.

FIIs net sold stocks and stock futures worth Rs 250 cr and 937 cr respectively but net bought index futures worth Rs 145 cr. DIIs were net buyers to the tune of Rs 530 cr.

Rupee appreciated 1 paise to end at 64.42/$.

Punjab Chief Minister Amarinder Singh yesterday announced total waiver of crop loans up to Rs 2 lakh of small and marginal farmers, and a flat Rs 2 lakh relief for all marginal farmers, irrespective of the loan amount.

OUTLOOK

Today morning, Nikkei is up more than a percent on yen weakness, other Asian markets are trading with gains of upto 0.4% and SGX Nifty is suggesting about 10 points higher start for our market.

Nifty yesterday touched a high of 9673 before closing at 9658, taking out the immediate hurdle of 9650. 9710, the top made on 6th June, is the immediate target on the way up above which 9850 would be the next target.

Immediate support on the hourly chart is placed around 9610, with the stop-loss of which trading longs should be held on to.

9510 IS THE IMPORTANT SUPPORT; 9650, 9710 UPSIDE HURDLES

9510 IS THE IMPORTANT SUPPORT; 9650, 9710 UPSIDE HURDLES

WORLD MARKETS                             

Dow and S & P 500 ended marginally in the green but Nasdaq lost 0.2% on Friday on the back of mixed economic data and after Amazon announced it was buying Whole Foods. Dow closed at fresh record high

Housing starts and consumer sentiment figures both missed expectations.

Shares of Wal-Mart and other big retail and grocery companies fell sharply after Amazon announced it was buying Whole Foods for $13.7 billion. Amazon itself gained 2.4%.

European markets gained 0.4%-0.9%.

The International Monetary Fund agreed to join the Greek bailout program with a standby arrangement of less than $2 billion. However, it will not disburse the money until the euro zone details debt relief measures, which is not expected until next year. Meanwhile, to keep the Greek economy afloat, creditors agreed to disburse $9.5 billion that will allow Athens to complete payments next month. As a result, Greek 10-year bond yields fell to lowest level in nearly a month.

Earlier the Bank of Japan decided to keep its policy unchanged. Russia's central bank announced a 25-basis points cut in a key interest rate to 9% as inflation in the economy nears its target.

For the week, US indices ended mixed with Dow up half a percent, S & P 500 up 0.1% and 0.9% lower Nasdaq. Main European markets lost between 0.5% to 0.8%. Asian markets fell 0.4%-1.6%.

French President Emmanuel Macron's party won a parliamentary majority at the weekend.

AT HOME

Benchmark indices ended little changed after a rangebound but choppy trading session. Sensex settled at 31056, down 19 points while Nifty added 10 points to finish at 9588. BSE mid-cap and small-cap indices gained 0.17% and 0.14% respectively. BSE Healthcare and IT indices tumbled 1.5% and 0.8% respectively, becoming top losers among the sectoral indices while FMCG index and Bankex were the top gainers, up 0.6% and 0.5% respectively.

FIIs net sold stocks, index futures and stock futrues worth Rs 764 cr, 276 cr and 500 cr respectively. DIIs were net buyers to the tune of Rs 891 cr.

Rupee appreciated 11 paise to end at 64.43/$.

For the week, Sensex and Nifty lost 0.6% and 0.8% respectively.

The Goods and Services Tax (GST) Council yesterday extended the deadline for filing the first set of returns. Giving respite to hospitality sector, council said 28% GST rate will now apply for room tariffs of above Rs 7,500 a night from the earlier threshold of Rs 5,000. Restaurants in five-star hotels will also be taxed at a GST rate of 18%, down from 28% earlier and identical to stand-alone air-conditioned restaurants. The council fixed two GST rates for lotteries—12% for government and 28% for government-authorised private draws.

OUTLOOK

Exports from Japan rose 14.9 percent on year compared to the 16.1 percent rise projected by a Reuters poll. Japan's trade balance, however, registered a deficit of 203.4 billion yen ($1.83 billion) compared to the 76 billion yen surplus expected.

Today morning, Asian markets are trading with gains of upto 0.7% and SGX Nifty is suggesting about 35 points higher start for our market.

After Nifty broke the immediate support of 9580, we had said that 34-DMA, placed around 9500, is the next important support to eye. We had also said that 9650 is the immediate hurdle above which 9710 would be the bigger resistance to eye.

Nifty last week touched a low of 9560 before closing at 9588 and is set to open higher today.

9650, where a trendline adjoining recent tops on the hourly chart is placed, continues to be immediate hurdle, above which, as mentioned above 9710, would be the bigger hurdle to eye.

34 DMA has now moved to 9510, and continues to be important support to eye.

NIFTY BREAKS 9580 SUPPORT; HEADED TO 34-DMA

NIFTY BREAKS 9580 SUPPORT; HEADED TO 34-DMA

WORLD MARKETS                             

Dow and S & P 500 fell 0.1% and 0.2% respectively while Nasdaq tumbled half a percent as tech stocks resumed descent.

Media reports suggested that President Donald Trump is being investigated by a special counsel for possible obstruction of justice.

Weekly jobless claims came in at 237,000. The Philadelphia Fed business index hit 27.6 in June, while the Empire State manufacturing survey reached 19.8. Retail sales, as against an expectation of a 0.1% gain, fell 0.3% in May, marking the largest one-month decline since January of last year.

Dollar index rose nearly half a percent to 97.45.

WTI crude fell 27 cents to $44.46 and Brent settled 8 cents lower at $46.92 a barrel.

European markets fell 0.5%-0.9%. Back in Europe, the Bank of England left rates at 0.25% and bond purchases at £435 billion, as was widely expected. U.K. retail sales fell 1.2% last month.

AT HOME

Sensex and Nifty saw a sustained downward move through the session to end lower by 0.3% and 0.4% respectively. Sensex lost 80 points to settle at 31076, it's lowest close since 26th May and Nifty fell 40 points to finish at 9578, the lowest since 25th May. BSE mid-cap index fell 0.1% but the small-cap index gained 0.4%. BSE Oil & Gas index was the top loser among the setoral indices, down 1.2%, followed by 0.9% each cut in IT and Teck indices. Realty index soared 2.2%, becoming top gainer, followed by 0.9% higher Healthcare index.

FIIs net sold stocks, index futures and stock futuers worth Rs 645 cr, 578 cr and 1007 cr respectively. DIIs were net buyers to the tune of Rs 855 cr.

Rupee depreciated 24 paise to end at 64.54/$.

India's trade deficit in May hit a 30-month high of USD 13.84 bn, up from USD 10.44 bn in April, as imports soared 33% y-o-y to $37.8 bn while exports rose 8.3% to USD 24 bn.

Petrol price was cut by Rs 1.12 per litre and diesel by Rs 1.24 per litre, the last of the fortnightly revisions after which daily correction in rates in step with cost will be implemented.

OUTLOOK

Today morning, except a marginally lower Shanghai, other Asian markets are trading with gains of 0.3%-0.5% and SGX Nifty is suggesting a flattish start for our market.

Nifty yesterday touched a low of 9560 and closed at 9578, breaking the immediate support placed at 9590-9580. Next support, as we have been mentioning, will come around 34-DMA, which is now placed around 9500.

9650 is the immediate hurdle on the hourly chart above which 9710 would be the next hurdle.

9500 BELOW 9580; 9710 CONTINUES TO BE IMMEDIATE HURDLE

9500 BELOW 9580; 9710 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS                             

While Dow gained 0.2%, S & P 500 and Nasdaq fell 0.1% and 0.4% after the Federal Reserve raised interest rates for the second time this year, as was widely expected.

Fed kept it's rate forecast unchanged and also provided more details on how it plans to reduce its massive $4.5 trillion balance sheet. However, the Fed now sees inflation falling short of expectations for the year.

U.S. Treasuries held higher after the Fed's announcement, with the benchmark 10-year yield sliding to 2.145%. Dollar index, after falling to 96.32, rebounded to close at 96.95.

Consumer price index fell 0.1% in May, as aginst expectation of a 0.2% rise. The Fed's preferred inflation measure, the PCE deflator, came in at a weaker 1.5%, well below the Fed's 2% inflation target.

WTI crude plunged 3.7% to touch a seven-month low after data showed surprise build in U.S. gasoline stocks

European markets, except a 0.3% higher DAX, fell 0.4%-0.1%.

AT HOME

After falling about three tenth of a percent, benchmark recouped all the losses and some more in the noon trade to end marginally higher. Sensex settled at 31156, up 52 points while Nifty added 11 points to finish at 9618. BSE mid-cap index ended flat while small-cap index added half a percent. BSE Energy and Realty indices climbed 1.5% each, becoming top gainers among the sectoral indices while Metal and FMCG indices were the top losers, down 0.7% each.

FIIs net sold stocks and stock futures worth Rs 161 cr and 310 cr respectively but net bought index futures worth Rs 150 cr. DIIs were net buyers to the tune of Rs 72 cr.

Rupee appreciated 4 paise to end at 64.29/$.

India's wholesale inflation sharply slowed to 2.17% during May from 3.85% in April.

OUTLOOK

Today morning, except a marginally higher Shanghai, other Asian markets are trading with cuts of 0.6%-1% and SGX Nifty is suggesting about 30 points lower start for our market.

As we have been mentioning, Nifty is in a consolidation mode after achieving 9700-9725 target and 9580-9590 is the immediate support area.

Nifty, after touching a low of 9580, rebounded to close at 9618, but a gap down opening would take it back to the 9580 support. 9580, which now also coincides with 20-DMA, is the immediate support, upon breach of which 34-DMA, placed around 9500, would be the next important support.

9710 continues to be immediate hurdle above which 9840 would be the next upside target to eye.

9710-9590 CONTINUES TO BE IMMEDIATE RANGE; FED IN FOCUS

9710-9590 CONTINUES TO BE IMMEDIATE RANGE; FED IN FOCUS

WORLD MARKETS                             

Dow and S & P 500 gained 0.4% each while Nasdaq climbed 0.7% as technology stocks bounced back from their biggest two-day decline since December. Dow and S & P 500 both posted a record close.

U.S. producer prices remained unchanged last month. National Federation of Independent Business' (NFIB) small business optimism index came in unchanged at 104.5 for May.

European markets, except a 0.2% lower FTSE, gained 0.4%-0.8%. Italian banks were higher after the country's economy minister said a deal to rescue two Italian banks is close. U.K. inflation reached 2.9% y-o-y in May - a four-year high.

WTI crude rose 38 cents to $46.46 and Brent rose 36 cents to $48.65 after Saudi Arabia vowed to reduce exports and OPEC reported an increase in its production for May.

AT HOME

After rising about four tenth of a percent benchmark indices tumbled in the late noon trade to end flat to marginally lower. Sensex settled at 31103, up 8 points while Nifty lost 10 points to finish at 9607. BSE mid-cap index ended flat while small-cap index gained 0.4%. BSE Power and Realty indices gained 0.8% each, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, down 1% and 0.9% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 312 cr, 300 cr and 121 cr respectively. DIIs were net buyers to the tune of Rs 305 cr.

Rupee appreciated 11 paise to end at 64.33/$.

RBI yesterday said it has identified 12 accounts of corporate borrowers who owe over Rs 5,000 crore each — and overall involve an amount of close to Rs 175,000 crore — for insolvency proceedings under the newly enacted Insolvency and Bankruptcy Code 2016 (IBC).

OUTLOOK

Today morning, except a modestly lower Shanghai, other Asian markets are trading flat to modestly higher and SGX Nifty is suggesting about 15 points higher start for our market.

As we have been mentioning, after hitting 9700-9725 target area, Nifty has been in a consolidation mode for couple of sessions and 9710-9590 are the boundaries of this consolidation phase, a breach of which, on either side, is required for taking a fresh directional view. Above 9710, 9820 would be the next upside target. On the way down, upon breach of 9590, 34-DMA, placed around 9490, would be the next downside target.

US Fed, at the end of it's two-day meeting is widely expect to raise interest rates by a quarter point. Markets will also look for clues about how the Fed plans to unwind its massive $4.5 trillion balance sheet.