15800-15566 IS THE IMMEDIATE RANGE

 

15800-15566 IS THE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow inched up 0.1% while S & P 500 and Nasdaq climbed 0.5% and 0.8% respectively, with the S & P 500 hitting a new high, despite hotter-than-expected inflation data.

 

May CPI jumped 5% y-o-y, its fastest pace since 2008 and higher than the forecast of 4.7%. A separate gauge that excludes volatile food and energy prices increased 3.8%, vs the estimate of 3.5%. Initial jobless claims for the week ended June 5 came in at 376,000 — the lowest in nearly 15 months.

 

The yield on the benchmark 10-year Treasury note fell 4 bps to 1.44%. Dollar index eased 0.08% to 90.0670. Spot gold rose 0.3% to $1,893.75 per ounce.

 

Brent futures rose 30 cents, or 0.4%, to $72.52 a barrel, while WTI crude rose 33 cents, or 0.5%, to end at $70.29. Those were the highest closes for Brent since May 2019 and WTI since October 2018.

 

In Europe, FTSE inched up 0.1% while DAX and CAC eased 0.1% and 0.3% respectively. The European Central Bank opted to keep interest rates and asset purchases unchanged, despite the recent overshoot of its inflation target. The central bank raised its growth and inflation views but promised to keep ample stimulus flowing.

 

AT HOME

 

Benchmark indices gained seven tenth of a percent each, snapping two-day losing streak. Sensex added 358 points to settle at 52300 while Nifty finished at 15737, up 102 points. Nifty mid-cap and small-cap indices surged 1.6% each. Except 0.1% lower Auto index, all the BSE sectoral indices ended in green, with Realty index on the top, up 3.3%, followed by 1.2% higher Telecom index.

 

FIIs net bought stocks and stock futures worth Rs 1330 cr and 1462 cr respectively but net sold index futures worth Rs 944 cr. DIIs were net sellers to the tune of Rs 575 cr.

 

Rupee depreciated 7 paise to end at 73.05/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.2% each while Shanghai is down half a percent. SGX Nifty is suggesting around 25 points higher start for our market.

 

In yesterday's report we had said that a breach of Wednesday's low, 15567, would confirm a "Sell" on the hourly chart. 15460 would be next downside level to eye if that happens. We had also said that 15800, the top made Wednesday, was the immediate hurdle.

 

Nifty rose to touch a high of 15751 before closing at 15737.

 

15800, the top made Wednesday, continues to be immediate hurdle, upon crossover of which, 16000-16050 would be the next target zone.

 

15566, the bottom made Wednesday, continues to be immediate support.