NIFTY NEARLY ACHIEVES 15670 TARGET

 

NIFTY NEARLY ACHIEVES 15670 TARGET

 

WORLD MARKETS

 

After opening with gains of more than half a percent, US indices slipped to end near flat line. Dow ended higher by 0.1% while S & P 500 and Nasdaq closed marginally in the red.

 

ISM Manufacturing PMI rose to 61.2 in May from 60.7 in April.

 

Brent crude rose 2.7% to $71.17 and WTI jumped more than 3% to $68.65 a barrel to hit two-year high as OPEC and allies agreed to continue gradually easing production cuts.

 

US 10-year Treasury yield ticked up to 1.616%. The dollar index rose 0.35% to 89.822. Spot gold eased 0.3% to $1,902.05 per ounce.

 

European markets gained 0.6%-1%. Final IHS Markit manufacturing PMI for Eurozone hit a record high 63.1, up from 62.9 in April and exceeding an initial flash estimate of 62.8. U.K. factory activity too hit a record high of 65.6 in May, up from 60.9 in April.

 

China’s Caixin/Markit manufacturing PMI for May came in at 52, slightly exceeding analyst expectations of 51.9.

 

AT HOME

 

After rising half a percent in the initial trade, benchmark indices gave away all the gains through the choppy session to end little changed. Sensex settled at 51934, down 3 points while Nifty lost 8 points to finish at 15575, snapping seven-day winning streak. Nifty mid-cap and small-cap indices fell 0.1% and 0.6% respectively. BSE Metal and Basic Material inidces slipped 1.6% and 1.1% respectively, becoming top losers among the sectoral indices while Oil & Gas and Energy indices were the top gainers, up 0.7% each.

 

FIIs net sold stocks worth Rs 450 cr but net bought index futures and stock futures worth Rs 414 cr and 215 cr respectively. DIIs were net bueyrs to the tune of Rs 230 cr.

 

Rupee depreciated 28 paise to end at 72.89/$.

 

India's Nikkei/IHS Markit May manufacturing PMI slipped to 10-month low of 50.8 in May from 55.5 in April.

 

OUTLOOK

 

Today morning, Nikkei is up 0.4% while Hang Seng and Shanghai are down 0.2% each. SGX Nifty is suggesting a flattish start for our market.

 

At the risk of repeating, we had turned our view on Nifty bullish after 14825 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

 

In yesterday's report we had said that 15670 was the next upside target.

 

Nifty touched a high of 15661 before closing at 15575, nearly achieving above mentioned target and vindicating our view.

 

15661, the top made yesterday, is the immediate hurdle, upon crossover of which, 15815 would be the next upside level to eye.

 

15375 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.