NIFTY RETREATS FROM 15900 HURDLE

 

NIFTY RETREATS FROM 15900 HURDLE

 

WORLD MARKETS

 

Dow, weighed down by weakness in Boeing and Chevron, fell 0.4% while S & P 500 and Nasdaq gained 0.2% and 1% respectively to close at record highs amid strength in big tech.

 

Morgan Stanley advanced 3% during extended trading after the company doubled its quarterly dividend and also announced a $12 billion stock buy back program.

 

Brent crude eased 67 cents, or 0.9%, to $73.40 a barrel while U.S. crude fell 74 cents or 1% to $75.44 a barrel.

 

The yield on the benchmark 10-year Treasury note fell 5.8 basis points to 1.478%. Dollar index inched up 0.1% to 91.897. Spot gold was steady at $1,779.70 per ounce.

 

European markets saw cuts ranging from 0.3%-1%. Travel and leisure stocks lead the losses on news that Portugal has imposed a quarantine on unvaccinated arrivals from the U.K.

 

AT HOME

 

After opening higher by nearly a third of a percent, benchmark indices reversed these gains through the session to end lower by a third of a percent, snapping 2-day winning streak. Sensex lost 189 points to settle at 52735 while Nifty finished at 15814, down 45 points. Nifty mid-cap and small-cap indices however gained 0.5% and 0.4% respectively.  BSE Metal and Healthcare indices rose 1.3% and 1% respectively, becoming top gainers among the sectoral indices while Energy and Capital Goods indices were the top losers, down 0.8% and 0.6% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1659 cr, 729 cr and 1059 cr respectively. DIIs were net buyers to the tune of Rs 1277 cr.

 

Rupee appreciated 1 paise to end at 74.19/$.

 

Government announced more relief measures for covid affected areas. Prominent among them were a Rs 1.1 kh cr loan guarantee scheme out of which Rs 50000 cr are for non-metro medical infrastructure and Rs 60000 cr for other sectors. Government also announced an additional Rs 1.5 lh cr for ECLGS.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-0.8% and SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 15901, the top made on 15th June, continued to be immediate hurdle while 15673, the low made Wednesday, continues to be immediate support.

 

Nifty, after touching a high of 15915 at the open, slipped to end at 15814.

 

A sustained trading above 15900 is required for a fresh upmove. If that happens, 16100 and 16350 would be subsequent targets to eye.

 

15673, continues to be immediate support, with the stop-loss of which, trading longs can be held on to.