9710-9590 CONTINUES TO BE IMMEDIATE RANGE

9710-9590 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS                             

While Dow gained 0.4% on Friday, Nasdaq nosedived 1.8% and S & P 500 lost 0.1% as technology stocks tumbled and energy and financials gained.

Shares of Apple, Facebook, Amazon, Netflix and Google-parent Alphabet all fell more than 3%.

Markets shook off a widely unexpected result to the general election in the UK where Prime Minster Theresa May's Conservative party lost its parliamentary majority in the process, winning 318 of 650 seats. Conservatives held a 17-seat majority before the contest. May announced that she would form a government alliance with Northern Ireland's Democratic Unionist Party.

European markets gained 0.2%-1%.

For the week, Dow gained 0.3% but S & P 500 and Nasdaq fell 0.3% and 1.6% respectively. In Europe, FTSE and DAX ended marginally lower while CAC eased 0.8%. In Asian Nikkei fell 0.8% but Hang Seng and Shanghai gained 0.4% and 1.7%.

AT HOME

After falling about four tenth of a percent in the initial trade, benchmark indices saw a smart rebound through the session to end higher by about a fifth of a percent. Sensex added 49 points to settle at 31262 and Nifty finished at 9668, up 21 points. BSE mid-cap and small-cap indices gained 0.3% and 0.5% respectively. BSE Realty and Metal indices soared 2.6% and 1.8% respectively, becoming top gainers among the sectoral indices while IT and FMCG indices were the top losers, down 0.8% and 0.7% respectively.

FIIs net sold stocks and index futures worth Rs 101 cr and 1030 cr respectively but net bought stock futures worth Rs 11 cr. DIIs were net buyers to the tune of Rs 325 cr.

Rupee depreciated 4 paise to end at 64.25/$.

For the week, Nifty gained 0.14% while Sensex ended flat.

The GST Council on yesterday reduced tax rates on 66 items including ketchup, instant food mixes, pickles, tractor components, computer printers and insulin. In a significant decision, the council also raised the eligibility threshold level of the “composition scheme” — to an annual turnover of Rs 75 lakh from Rs 50 lakh earlier. The council will again meet on July 18 to take stock of the preparedness of the new tax system.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.6% and SGX Nifty is suggesting about 50 points lower start for our market.

For past couple of days, we have been mentioning that 9710, the top made on Tuesday, is the immediate hurdle, a crossover of which is required for a fresh upmove. We had also said that 9590 is the immediate support on the hourly chart, with the stop-loss of which existing longs can be held on to.

Nifty has spent couple of sessions within above mentioned boundaries and a possible gap down today would take it closer to the lower end of this range.

9590 continues to be immediate support below which 34-DMA, placed around 9465, would be the next important support to eye.

Upon crossover of 9710, 9800 would be the next upside target.