16000 CONTINUES TO BE IMMEDIATE HURDLE; 15550 IMMEDIATE SUPPORT

 

16000 CONTINUES TO BE IMMEDIATE HURDLE; 15550 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow rose 0.3% while S & P 500 and Nasdaq ended marginally in the red after a choppy session

 

Speaking at the European Central Bank Forum in Sintra, Fed chair Powell said that while there’s a risk that rate increases could slow the economy too much, the bigger risk was persistent inflation. Cleveland Fed President Loretta Mester said she will advocate for a 75 basis point hike to interest rates at the central bank’s July meeting if economic conditions remain the same by then.

 

US 10-year treasury yield slipped 9 bps to 3.095%. Dollar index rose 0.6% to 105.10. Spot gold fell 0.1% to $1,818.66 per ounce.

 

Brent crude futures settled 1.5% lower at $116.26 and WTI futures fell 1.8% to $109.78, snapping 3-day rising streak.

 

European markets fell 0.2%-1.7%. Euro zone government bond yields fell on as the German state of North-Rhine Westphalia reported a surprise fall in inflation. Spanish inflation surged 10.2% in June, up from 8.7% in May and above a 9% forecast.

 

AT HOME

 

After opening with cuts of a percent, benchmark indices recouped two third of the losses to end lower by a third of a percent, snapping 4-day winning streak. Sensex settled at 53026, down 150 points while Nifty lost 51 points to finish at 15799. Nifty mid-cap and small-cap indices fell 0.4% and 0.6% respectively. BSE Power and Utilities indices climbed 1.6% and 1.5% respectively, becoming top gainers among the sectoral indices while Bankex was the top loser, down 1.2%, followed by 1% each lower FMCG, Finance and IT indices.

 

FIIs net sold stocks and index futures worth Rs 851 cr and 2413 cr respectively but net bought stock futures worth Rs 13 cr. DIIs were net buyers to the tune of Rs 847 cr.

 

Rupee depreciated 20 paise to end at 78.97/$.

 

OUTLOOK

 

Today morning, Shaghai is up 0.7%, Hang Seng is flat while Nikkei is down nearly a percent. SGX Nifty is suggesting around 35 points lower start for our market.

 

In yesterday's report we had said that 16000, around which 34-DMA was placed, continued to be immediate hurdle while 15550 was the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a low of 15687, rebounded to end at 15799.

 

16030, 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; 15550 continues to be immediate support on the hourly chart, 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, below which, 32290, the bottom made on 17th June, would be the next downside level to eye.