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.