15567 CONTINUES TO BE IMMEDIATE SUPPORT

 

15567 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow ended little changed while S & P 500 and Nasdaq gained 0.2% and 0.4% respectively on Friday

 

The University of Michigan's consumer sentiment index for June increased to 86.4 from 82.9 in May. One-year inflation expectations fell to 4.0% from 4.6% in May, and five-to-10-year inflation expectations dropped to 2.8% from 3.0%.

 

The yield on the benchmark 10-year Treasury note was unchanged at 1.455%. The dollar index gained 0.6% to 90.58. The euro and sterling dipped against the dollar on bets that interest rates would stay lower for longer in Europe and Britain. Spot gold fell 1.2% to $1,875.31 per ounce.

 

Brent crude futures settled 17 cents higher at $72.69 while WTI rose 62 cents to $70.91 a barrel.

 

European markets gained 0.3%-0.8%. U.K. GDP climbed 2.3% month-on-month in April, according to an initial estimate, slightly exceeding expectations. Industrial, manufacturing and construction outputs for April came in considerably lower than expected, however.

 

For the week, Dow fell 0.8%, but the S&P 500 rose 0.4%, for its third straight positive week. Nasdaq climbed 1.9%, posting its fourth winning week in a row. WTI and Brent gained 1.9% and 1% respectively, extending the winning streak to third straight week.

 

AT HOME

 

Sensex and Nifty gained 0.3% and 0.4% respectively, extending the winning streak to second straight day and hitting fresh record highs. Sensex added 174 points to settle at 52474 while Nifty finished at 15799, up 61 points. Nifty mid-cap and small-cap indices gained 0.2% and 0.5% respectively and they too hit record highs. BSE Metal index soared 3.2%, becoming top gainer among the sectoral indices, followed by 1.5% higher IT index. Realty and Capital Goods indices were the top losers, down 1.1% and 0.7% respectively.

 

FIIs net bought stocks and stock futures worth Rs 19 cr and 184 cr respectively but net sold stock futures worth Rs 122 cr. DIIs were net buyers to the tune of Rs 666 cr.

 

Rupee depreciated 1 paise to end at 73.06/$.

 

For the week, Sensex and Nifty gained 0.7% and 0.8% respectively, extending the winning streak to fourth consecutive week. Nifty mid-cap and small-cap indices rose for the fourth and seventh consecutive week respectively.

 

OUTLOOK

 

Markets in China and Hong Kong are closed while Nikkei is up 0.4%. SGX Nifty is suggesting around 70 points lower start for our market/

 

In Friday's report we had reiterated the view that 15800 continued to be immediate hurdle, upon crossover of which, 16000-16050 would be the next target zone and had advised holding on to long positions with the stop-loss of 15566.

 

Nifty touched a high of 15835 before closing at 15799.

 

15567, the low made last Wednesday, continues to be immediate support. 15875, where a rising trendline adjoining recent tops on the hourly chart is placed, is the upside target/resistance to eye.

 

India's May CPI as well as WPI data will be released today.