16000 CONTINUES TO BE IMMEDIATE HURDLE; 15550 IMMEDIATE SUPPORT

 

16000 CONTINUES TO BE IMMEDIATE HURDLE; 15550 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

After opening with gains of 1% and more, US indices saw a sustained downward move through the session to end with deep cuts of 1.6%-3%. The reversal came as weak consumer confidence data added to concerns over a possible recession.

 

Conference Board's consumer confidence index fell to 98.7 in June, down from 103.2 in May and missing estimate of 100. Also, 12-month inflation expectations were at 8% for June, the highest level in data going back to August 1987. the S&P CoreLogic Case-Shiller national home prices index showed a 20.4% y-o-y jump through April.

 

US 10-year treasury yield slipped 3 bps to 3.175%. Dollar index rose half a percent to 104.48. Spot gold fell 0.2% to $1819 per ounce.

 

Brent crude futures rose 1%, to $116.28 a barrel and WTI futures rose 0.9%, to $110.53, extending the winning streak to third straight day.

 

European markets gained 0.4%-0.9%. The GfK German consumer confidence survey showed that consumer sentiment is projected to slide to a record low in July.

 

Earlier, China cut the quarantine period for international travelers.

 

AT HOME

 

After falling about three fourth of a percent in the initial trade, benchmark indices recouped all the losses and some more to end marginally higher, extending the winning streak to fourth consecutive day. Sensex settled at 53117, up 16 points while Nifty added 18 points to finish at 15850. Nifty mid-cap index rose 0.3% but small-cap index fell a third of a percent. BSE Oil & Gas and Energy indices climbed 2.5% each, becoming top gainers among the sectoral indices while Consumer Durables and Telecom indices were the top losers, down 1.5% and 1% respectively.

 

FIIs net sold stocks worth Rs 1244 cr but net bought index futures and stock futures worth Rs 84 cr and 327 cr respectively. DIIs were net buyers to the tune of Rs 1206 cr.

 

Rupee tumbled 43 paise to end at 78.77/$.

 

OUTLOOK

 

Today morning, Nikkei is down more than a percent while Hang Seng and Shanghai are off 0.8% and 0.25% respectively. SGX Nifty is suggesting around 150 points lower start for our market.

 

In yesterday's report we had said that 16000, around with 20 as well 34-DMAs are placed, was the immediate hurdle, above which, 16172, the upper end of the gap created by big gap-down opening on 13th June, would be the next target. We had also said that immediate support on the hourly chart had moved up to 15500, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a low of 15710, rebounded to end at 15850. The benchmark is set to open near yesterday's low today.

 

16000, around which 34-DMA is placed, continues to be immediate hurdle, above which, 16172, the upper end of the gap created by big gap-down opening on 13th June, would be the next target; Immediate support on the hourly chart has moved up to 15550, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 34150, the top made Monday, coincided with 34-DMA and is the immediate hurdle, above which, 34346, the upper end of the gap created by gap-down opening on 13th June, would be the next upside level to eye; 32900 is the immediate support on hourly chart.