16350, 16450 ARE UPSIDE LEVELS TO EYE; 15900 IS IMMEDIATE SUPPORT

 

16350, 16450 ARE UPSIDE LEVELS TO EYE; 15900 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 ended marginally in the red while Nasdaq inched up 0.1% on Friday following a stronger-than-expected jobs report that will likely keep the Federal Reserve on track for its aggressive rate hikes.

 

June Nonfarm payrolls increased 372,000, better than the 250,000 estimate. The unemployment rate was 3.6%, which was unchanged from May.

 

US 10-year treasury yield rose 8 bps to 3.084%. Dollar index, after touching a high of 107.78, reversed to end 0.1% lower at 106.89. Gold inched up 0.1% to $1742 per ounce.

 

Brent crude futures rose $2.37, or 2.3%, to settle at $107.02 a barrel and WTI crude rose $2.06, or 2%, to $104.79 a barrel.

 

European markets gained 0.1%-1.3%

 

For the week, Nasdaq and S & P 500 climbed 4.6% and 1.9% respectively while Dow inched up 0.8%. Brent posted a weekly decline of about 4.1% and WTI a loss of 3.4%. Gold plunged 3.8% for its fourth straight weekly dip.

 

AT HOME

 

Benchmark indices rose nearly half a percent, extending the winning streak to third straight day and closing at the highest level after 9th June. Sensex settled at 54481, up 303 points while Nifty added 87 points to finish at 16220. Nifty mid-cap and small-cap indices rose 0.3% each. BSE Capital Goods and Power indices were the top gainers among the sectoral indices, rising 2.2% and 1.7% respectively while Metal index slipped 1%, becoming top loser, followed by 0.1% lower Basic Materials and Telecom indices.

 

FIIs net sold stocks worth Rs 109 cr but net bought index futures and stock futures worth Rs 743 cr and 892 cr respectively. DIIs were net buyers to the tune of Rs 35 cr.

 

Rupee depreciated 7 paise to end at 79.25/$.

 

For the week, Sensex and Nifty rose 3% each, extending the winning streak to third consecutive week.

 

OUTLOOK

 

Today morning, Nikkei is up 1.3% while Hang Seng and Shanghai are down 2% and 1% respectively. SGX Nifty is suggesting around 90 points lower start for our market.

 

In Friday's report we had said that 16350 was the next upside level to eye and had advised trailing the stop-loss in long positions to 15900.

 

Nifty, after touching a high of 16275, ended at 16220. The benchmark is set to open near 16150 today.

 

16350 continues to be next upside level to eye for Nifty above which, 16450 would be next target; 15900 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 35958, the top made in June, is the immediate upside target/resistance; 34200 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.