16000 CONTINUES TO BE IMMEDIATE HURDLE; 15550 IMMEDIATE SUPPORT

 

16000 CONTINUES TO BE IMMEDIATE HURDLE; 15550 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

After falling 2-3% in the initial trade, US indices recouped more than half of the losses to end with cuts of 0.8%-1.3%

 

The core personal consumption expenditures index rose 4.7% y-o-y last month, slightly below estimate, however still near multi-decade highs. The Chicago PMI came in at 56, slightly below estimate of 58.3.

 

US 10-year treasury yield fell 7 bps to trade at 3.02%, Dollar index, after touching a high of 105.54, reversed to end at 104.74, down a third of a percent. Spot gold fell 0.6% to $1,807.11 per ounce.

 

Brent crude September futures fell $3.42, or 3%, to settle at $109.03 per barrel. WTI crude futures fell $4.02, or 3.7%, to $105.76 a barrel.

 

European markets slipped 1.7%-2.5%. French preliminary inflation data for June showed the country’s consumer price index rose by 5.8% y-o-y, up from 5.2% in May.

 

For the quarter, the S&P 500 fell more than 16%, its biggest one-quarter fall since March 2020. Fall for the first half stood at 20.6%, its largest first-half decline since 1970. Dow lost 11.3% in the second quarter, putting it down more than 15% for 2022. The Nasdaq, meanwhile, suffered its biggest quarterly drop since 2008, losing 22.4%.  It’s down 29.5% year to date.

 

AT HOME

 

Benchmark indices ended flat to marginally lower after a choppy expiry session, extending the losing streak to second straight day. Sensex settled at 53018, down 8 points while Nifty lost 18 points to finish at 15780. Nifty mid-cap and small-cap indices fell 0.8% and 0.5% respectively. BSE Metal index was the top loser among the sectoral indices, down 2.2%, followed by 1.2% each lower Auto, Basic Materials and Realty indices. Power index was the top gainer, up 0.8%, followed by 0.6% each higher Bankex and Utilities indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1138 cr, 1297 cr and 113 cr respectively. DIIs were net buyers to the tune of Rs 1378 cr.

 

Rupee ended unchanged at 78.97/$.

 

For the June month, Nifty fell 4.8%, extending the losing streak to third consecutive month and marking the biggest monthly cut since March 2020. Quarterly cut stood at 9.6%, biggest since March 2020.

 

India's eight core industries registered a strong growth of 18.1% in May 2022, highest in 13 months, compared to 8.4% in April this year.

 

OUTLOOK

 

Hang Seng is closed today for a holiday while Nikkei and Shanghai are down 0.8% and 0.3% respectively. SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 16030, around which 34-DMA was placed, continued to be immediate hurdle while 15550 continued to be 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 15890, slipped to end at 15780.

 

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; 33000 is the immediate support, below which, 32290, the bottom made on 17th June, would be the next downside level to eye.