15800 IS NEXT SUPPORT; 16140 IMMEDIATE HURDLE

 

15800 IS NEXT SUPPORT; 16140 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices, after falling a percent and half each in the initial trade on the back of hot inflation report, recovered through the session to end with cuts of 0.2%-0.7%.

 

June CPI rose 9.1% y-o-y, above the 8.8% estimate. That’s the fastest pace since November 1981. Core CPI, which excludes food and energy prices, came in at 5.9% and above the 5.7% estimate. Meanwhile, the Fed’s “Beige Book” report found higher fears of inflation and a potential recession.

 

US 2-year treasury yield rose 11 bps to 3.16% while 10-year yield fell 3 bps to 2.937%, pushing the inversion between the two to its biggest level since 2000. Dollar index eased 0.1% to 108.02. Gold rose half a percent to $1734 per ounce.

 

Brent crude rose 8 cents to $99.57 per barrel, while WTI crude settled 46 cents higher at $96.30 per barrel.

 

European markets fell 0.7%-1.2%.

 

AT HOME

 

After rising half a percent in the initial trade, Sensex and Nifty reversed these gains to end with cuts of 0.7% and 0.5% respectively, extending the losing streak to third straight day. Sensex settled at 53514, down 372 points while Nifty lost 91 points to finish at 15966. Nifty mid-cap and small-cap indices however gained 0.2% each. BSE Power and Utilities indices tumbled 1.7% each, becoming top losers among the sectoral indices while Power and Utilities indices were the top losers, down 1.7% each.

 

FIIs net sold stocks worth Rs 2840 cr but net bought index futures and stock futures worth Rs 566 cr and 11 cr respectively. DIIs were net buyers to the tune of Rs 1799 cr.

 

Rupee depreciated 3 paise to end at 79.63/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.6% and 0.2% respectively while Shanghai is down 0.1%. SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 16350 continued to be next upside level to eye for Nifty while 15900 continued to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a high of 16140, plunged to 15950 before closing at 15966.

 

Nifty yesterday confirmed a "Sell" on the hourly chart and 20-DMA, placed around 15800 is the next downside level to eye; 16140, the top made yesterday, would act as immediate hurlde above which 16275, the top made last week, would be next resistance.

 

For Banknifty, below yesterday's low of 34760, 34550-34400 would be the next support zone; 35543, the top made Monday, is immediate hurdle.