15915 IS THE NEXT HURDLE; 15744-15705 IS THE IMMEDIATE SUPPORT ZONE

 

15915 IS THE NEXT HURDLE; 15744-15705 IS THE IMMEDIATE SUPPORT ZONE

 

WORLD MARKETS

 

US indices fell nearly a third of a percent each, after the hotter-than-expected inflation report overshadowed a strong start to second-quarter earnings season.

 

June consumer price index jumped 5.4% y-o-y, its fastest pace in nearly 13 years and above expectations of a 5% increase. The core CPI rose 4.5%, it's fastest since September 1991 and well above the estimate of 3.8%. However, a third of the increase was on account of used car prices.

 

JPMorgan and Goldman Sachs kicked off earnings season, with both banks beating top and bottom line estimates.

 

The yield on the benchmark 10-year Treasury note rose 4.6 basis points to 1.412%. The dollar index climbed 0.6% to 92.762. Spot gold was steady at $1,807 per ounce.

 

Brent crude futures inched up 8 cents, or 0.1%, to $75.24 per barrel while WTI fell 17 cents or 0.2% to $73.93.

 

European markets were little changed. France, the Netherlands, Greece and Spain all announced new restrictions on Monday to arrest the spread of delta variant of Covid-19. U.K. however confirmed Monday that it would lift all remaining restrictions in England on July 19, despite the country’s infection rate remaining high.

 

Data earlier showed China's June exports unexpectedly jumped 32.2% y-o-y and imports rose 36.7% leading to trade surplus of $51.53 bn, higher than the forecast of $44.2 bn.

 

AT HOME

 

Benchmark indices climbed 0.76% each, marking their biggest gain in nearly a month and half. Sensex added 397 points to settle at 52770 while Nifty finished at 15812, up 120 points. Nifty mid-cap and small-cap indices rose 0.2% and 1% respectively. BSE Bankex and Finance indices were the top gainers among the sectoral indices, rising 1.4% each while IT and Teck indices were the top losers, down 0.3% each.

 

FIIs net bought stocks, index futures and stock futures worth Rs 114 cr, 2573 cr and 794 cr respectively. DIIs were net buyers to the tune of Rs 344 cr.

 

Rupee appreciated 8 paise to end at 74.49/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.1%-0.7% while SGX Nifty is suggesting around 40 points lower start for our market.

 

In yesterday's report we had reiterated the view that 15800 continued to be immediate hurdle on the hourly chart, above which, 15915 would be the bigger resistance to eye.

 

Nifty surged to touch a high of 15820 before closing at 15812. The benchmark is set to open below 15800 today.

 

15915, the top made in June, which was again tested on 6th July, continues is the next resistance to eye.

 

15744-15705, the gap on the hourly chart created by yesterday's gap-up opening, is the immediate support zone to eye, below which, 15632, the bottom made last week, would be the crucial support.

 

Infosys will report its quarterly earnings today.