15450-15770 IS THE IMMEDIATE RANGE

 

15450-15770 IS THE IMMEDIATE RANGE

 

WORLD MARKETS

 

US indices plunged 0.9%-1.6% on Friday.

 

St. Louis Fed President James Bullard said that inflation was stronger than anticipated and faster tightening of monetary policy was a “natural” response to it.

 

US 10-year treasury yield fell 7 bps to 1.441% but 2-year yield rose 4.3 bps to 0.256%. Dollar index rose 0.43% to 92.28, its highest since mid-April. Spot gold edged 0.17% lower to $1,770.36 per ounce.

 

Brent crude futures rose 39 cents, or 0.53% to $73.47 a barrel while WTI crude futures settled at $71.64 per barrel, up 0.8%.

 

European markets slipped 1.5%-1.9%. The German Producer Price Index rose 1.5% month-on-month in May, outstripping 0.7% consensus forecast. May’s U.K. retail sales fell 1.4% month on month, falling short of the 1.6% expansion expected.

 

For the week, Dow lost 3.5% to close out its worst week since October. The S&P 500 and Nasdaq were down by 1.9% and 0.2%, respectively. In Europe, FTSE and DAX slipped 1.6% each while CAC was off half a percent. In Asia, except a flat Nikkei, other markets fell 0.1%-1.8%, with Shanghai leading the losses. Dollar index climbed 2% to 92.32 for its best week in nearly nine months. Gold plunged 6.2% to $1764 per ounce, for its's worst week in over a year. Copper nosedived nearly 7.5% for its worst weekly fall since March last year.

 

AT HOME

 

After plunging nearly a percent and half till 11.00 am, benchmark indices staged a stunning rebound to end on a flat note. Sensex settled at 52344, up 21 points while Nifty lost 8 points to finish at 15683. Nifty mid-cap and small-cap indices however ended with deep cuts of 1% and 0.9% respectively. BSE Power and Utilities indices were the top losers among the sectoral indices, down 2.8% and 2.5% respectively. Telecom index climbed 1.5%, becoming top gainer, followed by 0.2% higher FMCG index.

 

FIIs net bought stocks worth Rs 2681 cr but net sold index futures and stock futures worth Rs 101 cr and 221 cr respectively. DIIs were net buyers to the tune of Rs 446 cr.

 

Rupee appreciated 22 paise to end at 73.86/$.

 

For the week, Sensex and Nifty eased 0.25% and 0.7% respectively, snapping four-week winning streak.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down more than 3% and 1% respectively while Shanghai is marginally in the red. SGX Nifty is suggesting around 140 points lower start for our market.

 

In Friday's report we had said that 15606, the low made Monday, continued to be immediate support, upon breach of which, 15460, the bottom made on 2nd June, would be the next downside level to eye.

 

Nifty broke 15606 support and plunged all the way to 15450, but staged a smart rebound from there to end at 15683. The benchmark is set to open near 15550 today.

 

15450, the low made Friday, is the immediate support to eye.

 

On the way up, 15770 is the immediate hurdle on the hourly chart.