15598 BELOW 15674; 15901 CONTINUES TO BE IMMEDIATE HURDLE

 

15598 BELOW 15674; 15901 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.2% and 0.1% respectively while Nasdaq inched up 0.1%

 

New home sales in the U.S. fell 5.9% in May for their second monthly decline.

 

Atlanta Fed President said with growth surging to an estimated 7% this year and inflation well above the Fed’s 2% target, he now expects interest rates will need to rise in late 2022.

 

US 10-year Treasury yield rose 1.7 bps to 1.489%. The dollar index gained 0.06% to 91.798. Spot gold rose 0.3% to $1,782.96 per ounce.

 

Brent crude rose 38 cents, or 0.5%, to $75.19 while WTI added 23 cents, or 0.3%, to settle at $73.08 a barrel. U.S. crude inventories fell by 7.6 million barrels last week to 459.1 million barrels, a much steeper drawdown than the 3.9 million barrels expected.

 

European markets ended with cuts ranging from 0.2%-1.2% with DAX being the top loser. Eurozone IHS Markit flash composite PMI for June came in at 59.2, its highest reading since 2006 and up from 57.1 in May. In the U.K., the composite reading came in at 61.7, down from May’s unprecedented 62.9.

 

AT HOME

 

After opening nearly half a percent higher, benchmark indices plunged a percent from the top of the day to end lower by half a percent. Sensex settled at 52306, down 282 points while Nifty lost 85 points to finish at 15686. Nifty mid-cap and small-cap indices fell 0.2% and 0.5% respectively. BSE Oil & Gas and Utilities indices were the top losers among the sectoral indices, down 1.2% each while Consumer Durables and Auto indices were the top gainers, up 0.8% and 0.5% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 3157 cr, 372 cr and 479 cr respectively. DIIs were net buyers to the tune of Rs 1317 cr.

 

Rupee appreciated 9 paise to end at 74.27/$.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are trading with modest gains while Shanghai is off 0.4%. SGX Nifty is suggesting around 20 points higher start for our market.

 

In yesterday's report we had said that 15901, the top made last week, continued to be immediate hurdle while 15700 is the immediate support on the hourly chart.

 

Nifty, after making a top of 15863 at the open, plunged to touch a low of 15674 before closing at 15696.

 

15674, the low made yesterday, meets a trendline adjoining recent bottoms on the hourly chart and also coincides with the 50% retracement level of the recent 15450-15896 upmove and hence is the immediate support to eye. Below 15674, 15598, the 67% retracement level of this upmove, would be the next support. If 15598 gives way, 15450, the low made last week, would be the crucial support to eye.

 

15901, the top made last week, continues to be immediate hurdle, upon crossover of which, 16050 would be the next upside target.