34-DMA LANDS SUPPORT AROUND 15600; 15839 IS IMMEDIATE HURDLE

 

34-DMA LANDS SUPPORT AROUND 15600; 15839 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices gained 0.1%-0.5%, with the S & P 500 notching its sixth-straight record close.

 

Weekly jobless claims came in at 364000, setting a pandemic-era low. U.S. manufacturing activity grew at just a moderate pace in June.

 

The yield on the benchmark 10-year Treasury note rose 2.6 basis points to 1.47%. Dollar index traded up 0.2% at 92.572, hitting a three-month high. Spot gold was up 0.2% to $1,773.09 per ounce.

 

All eyes will be on the US monthly non-farm payroll data today, which is expected to show an addition of 706000 jobs in June, up from 559000 in May. Unemployment rate is expected to fall to 5.6% from 5.8%. The average hourly wage is estimated to have jumped 0.3% on a m-o-m and 3.6% y-o-y.

 

WTI crude climbed 2.4%, or $1.76, to $75.23 a barrel, hitting its highest level since October 2018. Brent crude rose 2%, or $1.49, to $76.10 per barrel.

 

European markets rose 0.5%-1.2%. Eurozone IHS Markit final manufacturing PMI came in at 63.4, up from an initial 63.1 “flash” estimate, and the sharpest incline since the survey began in 1997. UK manufacturing PMI reading dipped to 63.9 from a record high 65.6 in May.

 

A private survey showed Chinese factory activity growth slowed in June.

 

AT HOME

 

After a positive start, benchmark indices slipped through the session to end lower by three tenth of a percent, extending the losing streak to fourth consecutive day. Sensex lost 164 points to settle at 52318 while Nifty finished at 15680, down 41 points. Nifty mid-cap index fell 0.3% while small-cap index gained 0.7%. BSE Power index tumbled 1.4%, becoming top loser among the sectoral indices, followed by 0.7% lower Teck index. Auto and Consumer Discretionary Goods & Services indices were the top gainers, up 0.8% and 0.7% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1245 cr, 294 cr and 406 cr respectively. DIIs were net buyers to the tune of Rs 881 cr.

 

Rupee depreciated 24 paise to end at 74.56/$

 

India's IHS Markit June manufacturing PMI slipped into contraction territory at 48.1 Vs 50.8 in May.

 

Escorts reported 15.5% y-o-y rise in tractor sales at 12533 units. Bajaj Auto June sales rose 24% to 3.46 lk units. Tata Motors' domestic sales were up 125% at 43704 units. Ashok Leyland sold 6448 units, a 169% jump. Maruti Suzuki sales soared 156% to 1.47 lk units. M & M auto sales surged 70.3% to 32964 units while tractor sales rose 32% to 48222 units. TVS Motor sales rose 27% to 2.52 lk units.

 

OUTLOOK

 

Today morning, Nikkei is up 0.3% while Hang Seng and Shanghai are trading with cuts of more than a percent each. SGX Nifty is suggesting around 20 points higher start for our market.

 

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

 

Nifty slipped to 15667 before closing at 15680.

 

34-DMA, placed around 15600, is the next downside level to eye, upon breach of which 15500-12450 would be the next support zone.

 

15839, the top made Wednesday, would be the immediate hurdle, upon crossover of which, 15900 would be the bigger hurdle to eye.