15915 ABOVE 15839; 15635 IS IMMEDIATE SUPPORT

 

15915 ABOVE 15839; 15635 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices gained 0.4%-0.8% on Friday after the June jobs report showed an accelerating recovery for the U.S. labor market. S & P 500 and Nasdaq hit record highs with the former rising for the seventh straight day.

 

US economy added 850,000 jobs last month, beating an estimated rise of 706,000 and topping the revised 583,000 jobs created in May. Average hourly wages rose 0.3% for the month and 3.6% y-o-y, matching expectations. The unemployment rate, however, rose to 5.9% from 5.8%.

 

The yield on the benchmark 10-year Treasury note fell 5 bps to 1.42%. The dollar index fell 0.2% to 92.421, after earlier hitting a three-month high of 92.759. Spot gold rose 0.4% to $1,784.21 per ounce.

 

WTI crude futures settled 7 cents lower at $75.16 a barrel while Brent crude futures were unchanged at $75.84. OPEC+ ministers ended Friday’s meeting without a deal and they will meet again on Monday on oil output policy.

 

In Europe, DAX rose 0.3% while FTSE and CAC were little changed. Eurozone producer prices rose 1.3% month-on-month and 9.6% year-on-year.

 

For the week, US indices gained 1%-2% with S & P 500 and Nasdaq hitting record highs. In Europe, DAX rose 0.3% while FTSE and CAC slipped 0.2% and 1.1% respectively. Asian markets saw deeper cuts ranging from 0.8%-3.3% with Hang Seng and Shanghai being the top losers. Dollar index gained 0.6%. WTI crude gained 1.6% to reach $75.19/$. Brent however ended marginally lower. Gold inched up 0.3% to $1788 per ounce, extending last week’s 1% rise.

 

AT HOME

 

After falling three tenth of a percent till 11.00 AM, benchmark indices climbed nearly six tenth of a percent to end higher by a third of a percent, snapping four-day losing streak. Sensex settled at 52484, up 166 points while Nifty added 42 points to finish at 15722. BSE Consumer Durables and Energy indices gained 1.2% and 1% respectively, becoming top gainers among the sectoral indices while Power and Metal indices were the top losers, down 1.3% and 1.2% respectively.

 

FIIs net sold stocks worth Rs 983 cr but net bought index futures and stock futures worth Rs 99 cr and 235 cr respectively. DIIs were net buyers to the tune of Rs 930 cr.

 

Rupee depreciated 18 paise to end at 74.74/$.

 

For the week, Sensex and Nifty fell 0.8% and 0.9% respectively.

 

OUTLOOK

 

Today morning, Nikkei is off 0.4%, Hang Seng is flat while Shanghai is up 0.3%. SGX Nifty is suggesting around 100 points higher start for our market.

 

In Friday's report we had said that 34-DMA, placed around 15600, was the next downside level to eye, and 15839 was the immediate hurdle.

 

Nifty, after touching a low of 15634, rebounded to end at 15722 and is set to open above 15800 today.

 

15839, the top made last Wednesday, is the immediate hurdle on the hourly chart, upon crossover of which, 15915, the top made last week, would be the next upside level to eye.

 

15635, the low made Friday, also coincided with the lower end of the daily bollinger band and hence is the important immediate support to eye.