15500 BELOW 15673; 15900 CONTINUES TO BE IMMEDIATE HURDLE

 

15500 BELOW 15673; 15900 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.6% and 0.1% respectively while Nasdaq eased 0.2%. 2.7% rise in Walmart helped Dow while weakness in Facebook, Amazon, Netflix and Alphabet weighed on the Nasdaq.

 

U.S. private payrolls increased more than expected in June by 692,000 jobs. Data for May though was revised lower to 886,000 from 978,000 reported earlier. Pending home sales jumped an unexpectedly high 8% in May compared with April, as against expectation of a 1% drop.

 

The yield on the benchmark 10-year Treasury note fell 2.46 basis points to 1.456%. The dollar index gained 0.3% to 92.319. Spot gold rose 0.4% to $1,768.78 per ounce.

 

Brent crude rose 28 cents, or 0.4% to $75.04 a barrel while WTI was up 23 cents, or 0.3% at $73.21 a barrel.

 

European markets fell 0.7%-1% amid persistent concerns over the coronavirus pandemic and rising inflation. U.K. first-quarter GDP was confirmed at -1.6% q-o-q, slightly below expectations. Euro zone inflation cooled in June to 1.9% from 2.0% in May.

 

China’s official manufacturing PMI for June showed slower factory activity growth.

 

For the month, Dow inched lower by 0.1% while S & P 500 and Nasdaq gained 2.2% and 5.5% respectively. The dollar index gained 2.6% for its best month in 4-1/2 years.

 

AT HOME

 

After rising nearly half a percent in the morning, benchmark indices tumbled in noon to end modestly lower, extending the losing streak to third straight day. Sensex lost 67 points to settle at 52482 while Nifty finished at 15721, down 27 points. Nifty mid-cap and small-cap indices however gained 0.3% and 0.2% respectively. BSE Utilities and Power indices were the top losers among the sectoral indices, down 1.2% and 0.9% respectively. IT and Energy indices were the top gainers, up 0.9% and 0.7% respectively.

 

FIIs net sold stocks and stock futures worth Rs 1647 cr and 547 cr respectively but net bought index futures worth Rs 447 cr. DIIs were net buyers to the tune of Rs 1520 cr.

 

Rupee depreciated 10 paise to end at 74.32/$.

 

For the month, Nifty inched up 0.9%, having run-up 6.5% in May.

 

Output of India's core sector, comprising of eight core industries, rose 16.8% y-o-y but fell 3.74% month-on-month in May.

 

OUTLOOK

 

Hang Seng is closed today while Nikkei and Shanghai are trading with cuts of 0.4% and 0.3% respectively. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 15900 continued to be immediate hurdle, while 15673, continued to be immediate support.

 

Nifty, after touching a high of 15839, plunged to 15708 before closing at 15721.

 

15673, the low made last Wednesday, continues to be immediate support, upon breach of which, 15500-15450 would be the next support zone.

 

15900 continues to be immediate hurdle, a sustained trading above which is required for a fresh upmove.

 

34525, the low made last Wednesday, is the next support for Banknifty, upon breach of which, 34200, where a trendline adjoining recent bottoms on the hourly chart is placed, would be the next downside level to eye; 35215, the top made yesterday, is the immediate hurdle, upon crossover of which, 35577, the top made Monday, would be the bigger hurdle to eye.