NIFTY RETREATS FROM 15901 TARGET; 15700 IS IMMEDIATE SUPPORT

 

NIFTY RETREATS FROM 15901 TARGET; 15700 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices gained 0.2%-0.8% with Nasdaq closing at record.

 

In his testimony before the House of Representatives, Fed Chair  Powell reiterated that inflation pressures will be temporary and that the economy is growing, although the threat of the pandemic is still present. New York Fed President said it was too soon to shift policy, and that he expects inflation to ease from about 3% this year to close to 2% in 2022 and 2023.

 

 

US 10-year Treasury yield dipped 1.5 bps to 1.47%.  Dollar index was steady at 91.915. Spot gold fell 0.3% to $1,777.91 per ounce.

 

Brent crude dipped 0.12% to $74.81 per barrel, while WTI slipped 0.8% to $73.06 a barrel.

 

European markets rose 0.1%-0.4%. ECB President Christine Lagarde gave an optimistic outlook for the euro zone economy and noted that the bloc is “clearly in a different situation” to the U.S. with regard to inflation. On the data front, euro zone consumer confidence for June rose 1.8 points from a month earlier.

 

AT HOME

 

After rising nearly a percent in the first hour, benchmark indices gave away most of the gains through rest of the session to end just marginally higher. Sensex settled at 52588, up 14 points while Nifty added 26 points to finish at 15772. Nifty mid-cap and small-cap indices rose 0.1% and 0.5% respectively. BSE Capital Goods and Industrials indices climbed 2% and 1.4% respectively, becoming top gainers among the sectoral indices while Realty index and Bankex were the top losers, down 0.8% and 0.3% respectively.

 

FIIs net sold stocks and stock futures worth Rs 1028 cr and 337 cr respectively but net bought index futures worth Rs 669 cr. DIIs were net buyers to the tune of Rs 302 cr.

 

Rupee depreciated 26 paise to end at 74.36/$.

 

OUTLOOK

 

Today morning, Hang Seng is up 0.4%, Nikkei is flat while Shanghai is off 0.2%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 15770 continued to be immediate hurdle, upon crossover of which, 15901, the top made last week, would be the next upside target.

 

Nifty crossed 15770 hurdle and surged all the way to 15895, nearly achieving the target mentioned above. From there, it slipped to end at 15772.

 

15901, the top made last week, continues to be immediate hurdle, upon crossover of which, 16050 would be the next upside level to eye.

 

15700 is the immediate support on the hourly chart, upon breach of which, 15450, the low made last week, would be the crucial support.