STAY LONG WITH THE STOP-LOSS OF 15738

 

STAY LONG WITH THE STOP-LOSS OF 15738

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.3% each while Nasdaq ended flat

 

Minutes of the latest Fed meeting showed officials discussed reducing asset purchases but also expressed the need for patience. The meeting summary also reiterated the Fed’s view that inflation has been rising faster than they expected but that they see that trend as transitory.

 

Job openings in May climbed to a 9.2 million, according to the JOLTS report.

 

US 10-year Treasury yield fell 5 bps to 1.318%, its lowest since late February. The yield on the 30-year Treasury bond dipped 6 basis points to 1.93%. The shorter end of the curve was largely unchanged.

 

Dollar index inched up 0.14% to 92.664. Spot gold rose 0.4% to $1,804.16 per ounce.

 

Brent crude settled 1.5% lower at $73.43 per barrel while WTI shed 1.6% to settle at $72.20 per barrel, reversing gains made earlier in the session.

 

European markets gained 0.3%-1.2% with DAX leading the tally. The European Commission hiked its GDP growth forecasts for the euro area to 4.8% for this year and 4.5% for 2022.

 

AT HOME

 

After trading in a narrow range, benchmark indices spiked up in late noon trade to end higher by four tenth of a percent and posted a record close. Sensex added 193 points to settle at 53054 while Nifty finished at 15880, up 61 points. Nifty mid-cap and small-cap indices rose 0.6% each. BSE Metal and Realty indices climbed 2.3% and 1.9% respectively, becoming top gainers among the sectoral indices while Consumer Durables and Energy indices were the top losers, down 0.9% and 0.6% respectively.

 

FIIs net bought stocks and stock futures worth Rs 533 cr and 196 cr respectively but net sold index futures worth Rs 319 cr. DIIs were net sellers to the tune of Rs 232 cr.

 

Rupee depreciated 7 paise to end at 74.61/$.

 

In a major reshuffle, PM Modi inducted 36 new faced in his cabinet while 12 ministers resigned, taking new tally to 78 from 54. Prominent among new faces are Jyotiraditya Scindia, Naraya Rane and Sarbananda Sonowal while key ministers who left included Ravishankar Prasad and Dr Harshwardhan and Prakash Javdekar.

 

OUTLOOK

 

Today morning, Hang Seng is down 0.8% while Nikkei and Shanghai are off 0.4% each. SGX Nifty is suggesting around 40 points lower start for our market.

 

In yesterday's report we had said that 15762-15738, the gap created by Monday's gap-up opening, continued to be immediate support zone while 15915 continued to be upside level to eye.

 

Nifty, after touching a low of 15780, reversed to end at 15880 and is set to open near 15850 today.

 

15762-15738, the gap created by Monday's gap-up opening, continues to be immediate support zone.

 

15915 continues to be upside level to eye, a crossover of which is required for a fresh upmove. If that happens, 16200 would be the next target to eye.

 

Meanwhile, trading longs can be held on to with the stop-loss of 15738.

 

TCS will report its quarterly earnings today.