10328 CONTINUES TO BE UPSIDE TARGET/RESISTANCE; 9960 IMMEDIATE SUPPORT

10328 CONTINUES TO BE UPSIDE TARGET/RESISTANCE; 9960 IMMEDIATE SUPPORT

WORLD MARKETS

After rising more than a percent, Dow and S & P 500 nosedived to end with cuts of 0.8% and 0.6% respectively on the back of a slew of negative news surrounding the pandemic. Nasdaq managed to end flat.

Arizona and Florida reported record spikes in confirmed Covid-19 cases on Friday. California on Thursday reported more than 4,000 new cases in a single day, the highest daily number ever.

Apple said it’s reclosing a total of 11 stores in Florida, Arizona, South Carolina and North Carolina. Cruise Lines International Association announced suspension of cruise operations from U.S. ports, citing the ongoing situation with the pandemic.

Initial gains was on the back of a news report that China was set to up its purchases of U.S. farm products to comply with the phase-one trade deal.

Brent crude rose 61 cents to $42.12 a barrel, while WTI gained 91 cents to settle at $39.75 per barrel.

European markets gained 0.4%-1.1%. Germany’s statistics office on Friday reported a 2.2% annual fall in inflation for May and a 0.4% decline from the previous month, slightly below expectations. U.K. retail sales for May were down 13.1% y-o-y, significantly outstripping expectations of a 17.1% decline.

AT HOME

Bulls continued to call the shots as benchmark indices climbed a percent and half to close at the highest level since 11th March, marking the highest level in more than 3-months. Sensex settled at 34731, up 523 points while Nifty added 152 points to finish at 10244. BSE mid-cap and small-cap indices rose 1% and 1.4% respectively. Except 0.4% and 0.1% lower IT and Consumer Durables indices, all the BSE sectoral indices ended in green with Realty and Energy indices leading the tally, up 6.4% and 5% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1237 cr, 511 cr and 1161 cr respectively. DIIs were net sellers to the tune of Rs 881 cr.

Rupee depreciated 4 paise to end at 76.18/$.

For the week, Senesx and Nifty gained 2.8% and 2.7% respectively.

OUTLOOK

Today morning, Shanghai and Nikkei are little changed while Hang Seng is down 0.7%. SGX Nifty is suggesting around 40 points lower start for our market.

After Nifty crossed 10070 hurdle on Thursday, we had given next upside target of 10328 in Friday's report.

Nifty touched a high of 10272 before closing at 10244 and is set to open near 10200 today.

10328, the top made on  8th June, continues to be next upside target to eye, upon decisive crossover of which, 10550, the 61.8% retracement level of the entire 12430-7511 fall, would be the next target/resistance to eye

9960 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.