16700 IS IMMEDIATE HURDLE; 16370 IMMEDIATE SUPPORT

 

16700 IS IMMEDIATE HURDLE; 16370 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.4%-0.7%, with the Dow snapping a 6-day winning streak while S & P 500 and Nasdaq fell for the first time in 4 days.

 

US 10-year treasury yield jumped 11 bps to 2.85%. Dollar index rose 0.4% to 101.78. Spot gold tumbled 1% to $1837 per ounce.

 

Oil prices initially rose after EU leaders reached an agreement to ban 90% of Russian crude by the end of the year but reversed later following a report that OPEC is considering suspending Russia from the group’s output agreement. Brent crude, after touching a high of $124, slipped to end 4.5% down at $116.21 per barrel. WTI, after rising to $120, ended 1.9% lower at $114.18.

 

In Europe, FTSE inched up 0.1% but DAX and CAC tumbled 1.3% and 1.4% respectively. Euro zone inflation surged 8.1% y-o-y in May, exceeding expectations and marking a seventh consecutive record high.

 

China’s official manufacturing PMI for May came in at 49.6, up from April’s reading of 47.4 and higher than the expected 48.6 level.

 

For the month of May, the Dow and S&P 500 finished little changed while Nasdaq Composite underperformed, shedding more than 2%.

 

AT HOME

 

After falling eight tenth of a percent in the initial trade, Sensex and Nifty recouped all the losses but again plunged in late noon trade to end lower by 0.6% and 0.5% respectively, snapping a 3-day win streak. Sensex settled at 55566, down 359 points while Nifty lost 77 points to finish at 16584. Nifty mid-cap index fell 0.1% but small-cap index climbed 1.2%. BSE Power and Utilities indices were the top losers among the sectoral indices, down 2.2% and 2% respectively while Realty and Metal indices were the top gainers, up 2.1% and 1.8% respectively.

 

FIIs net sold stocks and index futures worth Rs 1004 cr and 1174 cr respectively but net bought stock futures worth Rs 4469 cr. DIIs were net buyers to the tune of Rs 1845 cr.

 

Rupee depreciated 10 paise to end at 77.64/$.

 

For the month, Nifty and Sensex fell 2.6% and 3% respectively.

 

OUTLOOK

 

Today morning, Nikkei is up 0.7% while Hang Seng and Shanghai are modestly lower. SGX Nifty is suggesting around 40 points lower start for our market.

 

In yesterday's report we had said that 16925, the 50% retracement level of the entire 18115-15735 fall, is the the next upside target while 16200 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a high of 16690, slipped to end at 16584 and is set to open near 16550 today.

 

16700, around which Nifty has made double top in past two sessions, is the immediate hurdle, upon crossover of which, 16925, the 50% retracement level of the entire 18115-15735 fall, would be the next upside target; 16370, the lower end of the gap created by Monday's gap-up opening, is the immediate support, upon breach of which, 16200 would be the next downside level to eye.

 

For Banknifty, 36084, the top made Monday, which roughly coincided with the upper band of daily bollinger band, continues to be immediate hurdle;34900-34800 is the immediate support zone.

 

Auto companies will report May sales figures today.