16003 CONTINUES TO BE IMMEDIATE SUPPORT; 16415 IMMEDIATE HURDLE

 

16003 CONTINUES TO BE IMMEDIATE SUPPORT; 16415 IMMEDIATE HURDLE

 

WORLD MARKETS

 

After falling a percent and half in the initial trade, Dow reversed and closed higher by 0.2%. S & P 500 and Nasdaq too cut their initial losses but still ended lower by 0.8% and 2.4% respectively as a warning of slowing growth from social media company Snap hurt the tech-heavy index.

 

Snap’s stock price tumbled 43% after the company said it will miss its own earnings and revenue targets.

 

The May reading of the S&P Global U.S. Flash Manufacturing PMI came in at 57.5, just above estimate of 57.4. Flash Services PMI, meanwhile, registered at 53.5, below a consensus forecast of 55.

 

US 10-year treasury yield slipped 10 bps to 2.754%. Dollar index fell 0.3% to 101.77, falling for the sixth session in last eight and hitting one-month low. Gold rose three fourth of a percent to $1866, extending the winning streak to fifth straight day.

 

ECB President Christine Lagarde said she saw the ECB’s deposit rate at zero or “slightly above” by the end of September, implying an increase of at least 50 bps from its current level.

 

Brent crude rose 14 cents to $113.56 a barrel while WTI crude fell 52 cents to settle at $109.77 a barrel.

 

European markets fell 0.4%-1.8%. A flash PMI for the euro zone in May came in at 55.8, slightly ahead of estimates.

 

AT HOME

 

Sensex and Nifty fell 0.4% and 0.6% respectively, extending yesterday's weakness. Sensex settled at 54052, down 236 points while Nifty lost 89 points to finish at 16125. Nifty mid-cap and small-cap indices fell 0.6% and 1.3% respectively. BSE IT and Utilities indices were the top losers among the sectoral indices, down 1.8% and 1.7% respectively. Bankex and Finance indices were the top gainers, up 0.1% each.

 

FIIs net sold stocks and index futures worth Rs 2393 cr and 644 cr respectively while net bought stock futures worth Rs 1778 cr. DIIs were net buyers to the tune of Rs 1948 cr.

 

Rupee depreciated 6 paise to end at 77.58/$.

 

OUTLOOK

 

Today morning, Nikkei is down 0.2% while Hang Seng and Shanghai are up 0.2% and 0.6% respectively. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 16003, the low made Friday, was the immediate support while 16414, the top made Monday, was the immediate hurdle.

 

Nifty touched a low of 16078 before closing at 16125.

 

16003, the low made Friday, continues to be immediate support, upon breach of which, 15735, the low made on 12th May, would be the crucial support; 16414, the top made Monday, continues to be immediate hurdle.

 

For Banknifty, 34820, the top made Monday, is the immediate hurdle, upon crossover of which, 35133, the upper end of the gap created by gap-down opening on 6th May, would be the next upside level to eye; 33658, the low made Friday, is the immediate support, below which, 33000 would be the next downside level to eye.

 

Apollo Hospitals, Coal India and BPCL will report their quarterly earnings today.