16438 CONTINUES TO BE IMMEDIATE SUPPORT; 16794 IMMEDIATE HURDLE

 

16438 CONTINUES TO BE IMMEDIATE SUPPORT; 16794 IMMEDIATE HURDLE

 

WORLD MARKETS

 

After gaining 1-2% at the open, US indices pared most of the gains through the session to end just modestly higher as the 10-year Treasury yield spiked up to 3% and hit its highest level in nearly a month.

 

US 10-year treasury yield jumped 10 bps to 3.044%. Dollar index rose quarter of a percent to 102.41. Spot gold fell 0.5% to $1,841.29 per ounce

 

Brent crude, after touching an intraday high of $121.95, reversed to end 0.5% lower at $118.23 per barrel. WTI settled 0.3% lower at $118.50. Saudi Arabia raised the July official selling price (OSP) for its flagship Arab light crude to Asia by $2.10 from June to a $6.50 premium, the highest since May.

 

European markets gained 1%-1.6%.

 

AT HOME

 

After falling nearly eight tenth of a percent in the initial trade, benchmark indices recouped most of the losses to end marginally in the red. Sensex settled at 55675, down 94 points while Nifty finished at 16569, down 15 points. Nifty mid-cap and small-cap indices fell 0.1% and 1% respectively. BSE Realty and Consumer Discretionary Goods & services indices fell 0.9% and 0.8% respectively, becoming top losers among the sectoral indices while Metal and Oil & Gas indices were the top gainers, up 0.7% and 0.5% respectively.

 

FIIs net sold stocks and index futures worth Rs 2398 cr and 418 cr respectively but net bought stock futures worth Rs 2273 cr. DIIs were net buyers to the tune of Rs 1940 cr.

 

Rupee depreciated 1 paise to end at 77.63/$.

 

OUTLOOK

 

Today morning, Nikkei is up half a percent while Hang Seng and Shanghai are down 0.4% and 0.1% respectively. SGX Nifty is suggesting around 100 points lower start for our market.

 

In yesterday's report we had said that 16794, the top made Friday, was the immediate hurdle while 16438, the low made last week, was the immediate support, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a low of 16444, rebounded to end at 16570. The benchmark is set to open below 16500 today.

 

16438, the low made last week, continues to be immediate support, upon breach of which, 20-DMA, placed around 16250, would be the next downside level to eye; 16794, the top made last week, continues to be immediate hurdle.

 

For Banknifty, 20-DMA, placed around 34600, is the next downside level to eye; 36083, the top made last week, is the immediate hurdle.