15915 ABOVE 15800; 15632 IS THE IMMEDITE SUPPORT

 

15915 ABOVE 15800; 15632 IS THE IMMEDITE SUPPORT

 

WORLD MARKETS

 

US indices climbed 1%-1.3% to notch record closes on Friday. Reopening plays and banks, which led the losses on Thursday, notched gains on Friday.

 

The yield on the 10-year Treasury rebounded 7 bps to 1.36%, easing concerns about an economic slowdown. The dollar index eased 0.25% to 92.13. Spot gold rose 0.5% to $1,810.99 per ounce.

 

Brent crude futures settled 1.9%, or $1.43, higher at $75.55 per barrel while WTI futures settled 2.2%, or $1.62, higher at $74.56 per barrel.

 

The People’s Bank of China cut the reserve requirement ratio for all banks by 50 bps, effective from July 15. China’s consumer price index for June rose 1.1% y-o-y, lower than the expected rise of 1.3%. Producer price index rose 8.8%, matching estimate.

 

European markets rose 1.3%-2.1%. U.K. eased some of its quarantine rules. Flash GDP data showed the U.K. economy growing slower than expected in May, up 0.8% from the previous month.

 

For the week, Dow inched up 0.25% while S & P 500 and Nasdaq were up 0.4% each. Oil fell nearly a percent. Gold gained 1.4%.

 

AT HOME

 

After falling more than half a percent in the initial trade, Sensex and Nifty recouped nearly half of the losses to end lower by 0.24% and 0.35% respectively, extending the losing streak to second straight day. Sensex lost 183 points to settle at 52386 while Nifty finished at 15690, down 38 points.  Nifty mid-cap and small-cap indices however gained 0.8% and 0.6% respectively. BSE Realty and Metal indices surged 2.4% and 2.1% respectively, becoming top gainers among the sectoral indices while Energy and Oil & Gas indices were the top losers, down 0.7% and 0.5% respectively.

 

FIIs net sold stocks and index futures worth Rs 1125 cr and 450 cr respectively but net bought stock futures worth Rs 77 cr. DIIs were net buyers to the tune of Rs 107 cr.

 

Rupee appreciated 7 paise to end at 74.63/$.

 

For the week, Sensex as well as Nifty fell 0.2%, extending the losing streak to second consecutive week.

 

OUTLOOK

 

Today morning, Nikkei is up nearly 2% while Hang Seng and Shanghai are up a third of a percent each. SGX Nifty is suggesting around 60 points higher start for our market.

 

In Friday's report we had said that 15635, the low made the previous week, was the next downside support to eye, below which, 15450, the low made during June, would be the next important support.

 

Nifty, after touching a low of 15633, rebounded to end at 15690. The benchmark is set to open near 15750 today.

 

15632, the low made Friday also coincided with the bottom made last week as well as the lower band of bollinger on the daily chart and hence is the important immediate support to eye.

 

On the way up, 15800 is the immediate hurdle on the hourly chart, above which, 15915 would be the bigger resistance to eye.

 

India's May IIP and June CPI data will be released today.