15901-15673 CONTINUES TO BE IMMEDIATE RANGE

 

15901-15673 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

US indices gained 0.6%-1% after President Biden announced the White House had reached an infrastructure deal after meeting with a bipartisan group of senators and Federal Reserve's stress test revealed that the banks could easily withstand a severe recession.

 

Two Federal Reserve officials warned that higher inflation might be around for longer than anticipated.

 

Jobless claims totaled 411,000 for the week ended June 19, higher than an estimate of 380,000. New orders for key U.S.-made capital goods unexpectedly fell in May.

 

The yield on the benchmark 10-year Treasury note was barely changed at 1.49%. The dollar index was little changed at 91.790. Spot gold fell 0.1% to $1,776.65 per ounce.

 

Brent crude advanced 0.5% to $75.56 per barrel while U.S. crude gained 0.3% to settle at $73.30 per barrel.

 

European markets rose 0.5%-1.3%. The Bank of England kept its monetary policy unchanged but vowed to monitor rising inflation.  Data from Germany showed the largest gain in retail conditions since German reunification more than three decades ago.

 

AT HOME

 

After a flattish start, benchmark indices saw a sustained northward move through the session to end higher by seven tenth of a percent each. Sensex added 392 points to settle at 52699 while Nifty finished at 15790, up 103 points. Nifty mid-cap index fell 0.3% while small-cap index was little changed. BSE IT and Teck indices soared 2.9% and 2.5% respectively, becoming top gainers among the sectoral indices while Energy and Oil & Gas indices tumbled 2.2% and 1.8% respectively, becoming top losers.

 

FIIs net sold stocks and stock futures worth Rs 2891 cr and 23 cr respectively but net bought index futures worth Rs 1780 cr. DIIs were net buyers to the tune of Rs 1139 cr.

 

Rupee appreciated 11 paise to end at 74.16/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of nearly half a percent while SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 15674, the low made Wednesday, was the immediate support while 15901 continued to be immediate hurdle.

 

Nifty, after touching a low of 15702 in the initial trade, rose to end at 15790.

 

15674, the low made Wednesday, continues to be immediate support, upon breach of which, 15598, the 67% retracement level of the recent 15450-15895 upmove, would be the next support to eye.

 

15901, the top made last week, continues to be immediate hurdle.