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