9178-8968 CONTINUES TO BE IMMEDIATE RANGE

9178-8968 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

Dow and S & P 500 rose 2.2% and 1.2% respectively while Nasdaq inched up 0.2%. All three indices however ended off the day high, weighing the potential impact of rising tensions between Washington and Beijing against economies reopening, as coronavirus containment measures are eased.

Last hour dip happened on media reports that the Trump Administration is weighing sanctions on Chinese firms and officials over the situation in Hong Kong. Trump said he would make an announcement about the administration’s response to China’s actions by the end of this week.

Sales of new U.S. single-family homes increased by 623,000 last month, beating estimates of 490,000. Data from the Conference Board showed Consumer confidence jumped to 86.6 this month from 85.7 in April.

Brent crude gained 64 cents, or 1.8%, to settle at $36.17 per barrel while WTI rose $1.10, or 3.3%, to $34.35 per barrel.

European markets gained 1%-1.5%.

Rating agency Fitch forecasted world GDP to contract by 4.6% in 2020 compared to a decline of 3.9% predicted in late April.

AT HOME

After rising more than a percent at the open, benchmark indices gave away all the gains through the session to end marginally lower. Sensex settled at 30609, down 63 points while Nifty lost 10 points to finish at 9029. BSE mid-cap and small-cap indices however gained 1.2% and 0.6% respectively. BSE Telecom index tumbled 4.6%, becoming top loser among the sectoral indices, followed by 2.6% lower Teck index. Metal and Consumer Durables indices were the top gainers, up 2.8% and 2.6% respectively.

FIIs net bought stocks and index futures worth Rs 4716 cr and 189 cr respectively but net sold stock futures worth Rs 1413 cr. DIIs were net buyers to the tune of Rs 2841 cr.

Rupee appreciated 29 paise to end at 75.66/$.

Rating agency Fitch forecasted India GDP to contract by 5% in FY21 compared to earlier prediction of 0.8% growth.

OUTLOOK

Today morning, Nikkei is up half a percent while Hang Seng and Shanghai are modestly lower. SGX Nifty is suggesting around 30 points higher start for our market.

In yesterday's report we had said that 9178, the top made last week, continues to be immediate resistance, a crossover of which is required for a fresh upmove. We had also said that 8968, the bottom made on Friday, was the immediate support.

Nifty, after touching a high of 9161 in the initial trade, slipped to 8996 before closing at 9029 and is set to open near 9050 today.

8968, the bottom made on Friday, continues to be immediate support, upon breach of which, 8860 and 8806, the bottoms made on 19th and 18th May respectively, would be subsequent downside targets.

9178, the top made last week, continues to be immediate resistance, a crossover of which is required for a fresh upmove.

Sun Pharma and Dabur will report their quarterly earnings today.