11461-11650 CONTINUES TO BE IMMEDIATE RANGE

11461-11650 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

Dow and S & P 500 gained 0.8% and 0.2% respectively but Nasdaq fell 0.1%. Dow and S & P 500 ended at fresh record highs with the Dow breaking above 27000 for the first time in its history.

UnitedHealth shares surged more than 5% after the White House dropped a proposal to eliminate drug rebates. Delta Air Lines rose 1.1% on better-than-expected earnings.

U.S. consumer price index rose more than expected last month, with the core CPI posting its biggest gain in 1½ years. Gold dipped 0.85% to $1,406.8 per ounce following the data.

Brent crude futures fell 39 cents to $66.61 a barrel while US crude futures dipped 23 cents, or 0.4%, to settle at $60.20.

In Europe, FTSE, DAX and CAC fell 0.3% each while Italy rose 0.6%.

AT HOME

Benchmark indices gained seven tenth of a percent, with Nifty breaking four-day losing streak. Sensex added 266 points to settle at 38823 while Nifty finished at 11582, up 84 points. BSE mid-cap and small-cap indices gained 0.6% and 0.4% respectively.  Except 0.2% and 0.05% lower Capital Goods and Consumer Durables indices, all the BSE sectoral indices ended in green with Auto and Metal indices leading the tally, up 1.8% each.

FIIs net sold stocks worth Rs 317 cr but net bought index futures and stock futures worth Rs 572 cr and 870 cr respectively. DIIs were net buyers to the tune of Rs 720 cr.

Rupee appreciated 12 paise to end at 68.44/$.

OUTLOOK

Today morning, Asian markets are trading flat to marginally lower and SGX Nifty is suggesting a marginally lower start for our market.

In yesterday's report we had reiterated the view that 11461 continues to be immediate support while 11625-11650 is the resistance zone to eye.

Nifty touched a high of 11599 before closing at 11583 and is set to open little lower today.

11625-11650, where previous bottoms on daily chart are placed, continue to be upside resistances to eye. Above 11650, 11720, the 50% retracement level of the recent 11981-11461 fall, would be the next target/resistance to eye.

11461, the low made Tuesday, continues to be immediate support, upon breach of which, 11426, the lower end of the gap created by big gap-up opening after the exit polls, would be the next support to eye.

Infosys and Indusind Bank will report their quarterly earnings today.

June CPI and May IIP data will also be released today.