15567 CONTINUES TO BE IMMEDIATE SUPPORT

 

15567 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow fell 0.2% while S & P 500 and Nasdaq rose 0.2% and 0.7% respectively on the back of rise in growth stocks as bond yields keep falling.

 

The Federal Reserve’s two-day policy meeting starts today and markets would listen closely for comments on inflation and the Fed’s eventual tapering plans.

 

The yield on the benchmark 10-year Treasury note rose 3 basis points to 1.5%. Dollar index was flat at 90.517. Spot gold fell 0.7% to $1,863.98 per ounce.

 

Brent settled up 17 cents at $72.86 a barrel while WTI fell 3 cents to $70.88.

 

In Europe, FTSE and CAC rose 0.2% each while DAX eased 0.1%. Eurozone industrial production rose 0.8% month-on-month in April to double economist projections. Britain delayed plans to lift most remaining COVID-19 restrictions by a month, because of the rapid spread of the more infectious Delta variant.

 

AT HOME

 

After falling more than a percent in the initial trade, benchmark indices saw a sustained northward move through rest of the session to end marginally in the green. Sensex settled at 52551, up 76 points while Nifty added 12 points to finish at 15811. Nifty mid-cap and small-cap indices however ended with cuts of 0.5% and 0.3% respectively. BSE Power and Realty indices tumbled 2% and 1.6% respectively, becoming top losers among the sectoral indices while Energy and IT indices were the top gainers, up 0.8% and 0.5% respectively.

 

FIIs net sold stocks and index futures worth Rs 504 cr and 2638 cr respectively but net bought stock futures worth Rs 778 cr. DIIs were net buyers to the tune of Rs 544 cr.

 

Rupee depreciated 20 paise to end at 73.27/$.

 

Wholesale price inflation in May jumped to 12.94%, the highest in the current series with 2011-12 base year. Retail inflation, too, spiked to a six-month high of 6.30%.

 

OUTLOOK

 

Today morning, Nikkei is up 0.8% while Hang Seng and Shanghai are down 0.7% each. SGX Nifty is suggesting around 20 points lower start for our market.

 

In yesterday's report we had reiterated the view that 15567, the low made last Week, continued to be immediate support while 15875, where a rising trendline adjoining recent tops on the hourly chart was placed, was the upside target/resistance to eye.

 

Nifty, after touching a low of 15606 in the initial trade, rebounded to end at 15811.

 

15900, where a rising trendline adjoining recent tops on the hourly chart is placed, is the upside target/resistance to eye.

 

15567, the low made last week, continues to be immediate support.