15606 IS THE IMMMEDIATE SUPPORT

 

15606 IS THE IMMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.2%-0.8% after the Federal Reserve raised inflation expectations and also brought forward its projections for the first post-pandemic interest rate hikes into 2023.

 

The Fed changed its headline inflation estimate to 3.4% for the year, a full percentage point above its March projection, and the so-called dot plot showed that central bankers expect rate hikes in 2023, a year ahead of prior estimates. However, the central bank reiterated in its policy statement that it expects the price increases to be “transitory” and also did not announce a plan to slow bond purchases.

 

US 10-year Treasury yield rose more than 7 basis points to 1.575%. Dollar index rose 0.41% at 90.901, its highest since May 7. Spot gold fell 1.1% to $1,839.06 per ounce.

 

May Building permits fell 3.0% to 1.681 million units and housing starts rose 3.6% to 1.572 million units. Import prices rose 1.1% in May after gaining 0.8% in April, while export prices rose 2.2% in May after rising 1.1% in April.

 

Brent crude gained 40 cents, or 0.5%, to hit $74.39 a barrel, reaching its highest since April 2019. US crude rose 3 cents to $72.15, after reaching $72.99, highest since October 2018.

 

In Europe, FTSE and CAC added 0.2% each while DAX was off 0.1%. UK CPI rose 2.1% year-on-year and 0.6% month-on-month, compared to expectations of 1.8% and 0.3% respectively.

 

Chinese retail sales rose 12.4% in May from the same period last year, missing expectations of 13.6%.

 

AT HOME

 

Sensex and Nifty slipped 0.5% and 0.6% respectively, snapping 4-day winning streak. Sensex lost 271 points to settle at 52501 while Nifty finished at 15767, down 101 points. Nifty mid-cap and small-cap indices fell 0.9% and 0.5% respectively. BSE Metal and Industrials indices tumbled 2.6% and 1.6% respectively, becoming top losers among the sectoral indices while FMCG and IT indices were the top gainers, up 0.4% and 0.3% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 870 cr, 586 cr and 376 cr respectively. DIIs were net sellers to the tune of Rs 874 cr.

 

Rupee depreciated 10 paise to end at 73.32/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 1.3% and 0.1% respectively while Shanghai is marginally higher. SGX Nifty is suggesting around 100 points lower start for our market.

 

In yesterday's report we had said that 15900 continued to be upside resistance, while 15567 continued to be immediate support.

 

Nifty slipped to touch a low of 15742 before closing at 15767. The benchmark is set to open near 15650 today.

 

15606, the bottom made on Monday, is the immediate support to eye, upon sustained trading below which, 15460, the bottom made on 2nd June, would be the next downside level to eye.

 

15900, the top made on Wednesday, continues to be immediate hurdle.