15900 CONTINUES TO BE IMMEDIATE SUPPORT

 

15900 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

After witnessing a see-saw trade for better part of the day, US indices slipped in late trade to end lower by 0.6%-1%.

 

US 2-year treasury yield dropped more than 2 bps to 3.045% but remained above the 10-year yield, which dropped 2 bps to 2.951%. Dollar index was flat at 108.16. Euro hit parity with US Dollar after two decades. Spot gold fell half a percent to $1,725.33 per ounce, hitting its lowest level in 9-months.

 

Oil tumbled on a strong dollar, fresh covid curbs in China and fears of a global economic slowdown. Brent crude futures fell 7.1% to $99.49 and WTI crude settled 7.9% lower at $95.84 per barrel.

 

European markets gained 0.2%-0.8%. German ZEW economic sentiment index fell to -53.8 points in July from -28 last month.

 

AT HOME

 

Benchmark indices tumbled a percent, marking the biggest fall in 3-weeks. Sensex settled at 53886, down 508 points while Nifty lost 157 points to finish at 16058. Nifty mid-cap and small-cap indices fell 0.4% each, snapping 4-day winning streak. BSE IT index was the top loser among the sectoral indices, down 1.3%, followed by 1.2% lower Teck and Metal indices. Utilities index was the top gainer, up 1.3%, followed by 1.2% higher Telecom and Power indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1565 cr, 2815 cr and 1124 cr respectively. DIIs were net buyers to the tune of Rs 141 cr.

 

Rupee depreciated 15 paise to end at 79.59/$.

 

India's June CPI inflation came in at 7.01%, a tad lower than previous month's 7.04%. Core CPI stood at 6% as against 6.1%. May IIP rose 19.6% Vs 7.1% month-on-month.

 

HCL Tech reported mixed set of results with in-line revenue but sharper margin contraction.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are modestly higher while Shanghai is marginally in the red. SGX Nifty is suggesting around 40 points higher 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 touched a low of 16031 before closing at 16058.

 

16350 continues to be next upside level to eye for Nifty; 15900 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

35950-361000 is the upside target zone for Banknfity; 34700 continues to be immediate support.