15460 BELOW 15567; 15800 IS IMMEDIATE HURDLE

 

15460 BELOW 15567; 15800 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.1%-0.4% ahead of important May inflation data due Thursday, that could shape the course of the Federal Reserve’s monetary policy.

 

The U.S. consumer price index for May is expected to show headline inflation at 4.7% — the fastest pace since 2008.

 

Markets are also watching negotiations over potential infrastructure spending. On Tuesday, negotiations for a comprehensive infrastructure bill fell apart after President Biden and a small group of GOP senators failed to reach a compromise. Biden then spoke with a bipartisan group of senators working on a backup infrastructure plan.

 

US 10-year treasury yield fell 3.7 basis points to 1.491%. The dollar index fell 0.1% to 90.080. Spot gold was down 0.1% at $1,891.05 per ounce.

 

Brent crude futures remained unchanged to settle at $72.22 a barrel while WTI crude closed 9 cents, or 0.1%, lower at $69.96 a barrel.

 

In Europe, FTSE and DAX fell 0.2% and 0.4% respectively while CAC rose 0.2%.

 

AT HOME

 

After rising four tenth of a percent in the morning, benchmark indices tumbled nearly a percent from top of the day to end lower by about two third of a percent, extending the losing streak to second straight day. Sensex settled at 51941, down 333 points while Nifty lost 104 points to finish at 15635. Nifty mid-cap and small-cap indices slipped 0.7% and 1.4% respectively.

 

BSE Energy and Oil & Gas indices tumbled 1.7% each, becoming top losers among the sectoral indices while Utilities and Power indices were the top gainers, up 0.9% and 0.4% respectively.

 

FIIs net sold stocks and stock futures worth Rs 846 cr and 70 cr respectively but net bought index futures worth Rs 537 cr. DIIs were net sellers to the tune of Rs 272 cr.

 

Rupee depreciated 8 paise to end at 72.98/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-0.6% and SGX Nifty is suggesting around 50 points higher star for our market.

 

In yesterday's report we had reiterated the view that 15850 continued to be next upside target and extended advise of holding long positions with the stop-loss of 15600.

 

Nifty, after touching a high of 15800, plunged to 15567 before closing above 15600 at 15635 and is set to open near 15700 today.

 

A breach of yesterday's low, 15567, would confirm a "Sell" on the hourly chart. 15460 would be next downside level to eye if that happens.

 

15800, the top made yesterday, is the immediate hurdle.