19303-19523 CONTINUES TO BE IMMEDIATE RANGE

 

19303-19523 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

U.S. indices gained 0.6%-0.9% ahead of June consumer price index reading due before the bell Wednesday.

 

Several Fed officials said the central bank would likely need to raise interest rates further to bring down inflation but the end to its current monetary policy tightening cycle was getting close.

 

U.S. 10-year treasury yield fell 2 bps to 3.974%. Dollar index fell 0.3% to 101.66, it's lowest level in 2-monhts. sterling hit a 15-month high after pay growth exceeded expectations. Gold rose 0.4% to $1932 per ounce.

 

Oil price rose to hit 10-week high. Brent futures rose 2.2% to $79.40 a barrel and WTI crude rose 2.5% to $74.83 a barrel.

 

European markets rose 0.1%-1.1%.

 

AT HOME

 

Benchmark indices rose 0.4% each, building on yesterday's marginal gains. Sensex settled at 65617, up 273 points while Nifty added 83 points to finish at 19439. Nifty mid-cap and small-cap indices surged 0.9% and 1.3% respectively, snapping a 2-day losing streak. Nifty Auto and Consumer Durables indices were the top gainers among the sectoral indices, up 1.4% and 1.3% respectively. Financial Services and Bank indices were the top losers, down 0.4% and 0.3% respectively.

 

FIIs net bought stocks and index futures worth Rs 1197 cr and 153 cr respectively but net sold stock futures worth Rs 988 cr. DIIs were net sellers to the tune of Rs 7 cr.

 

Rupee appreciated 20 paise to end at 82.37/$.

 

GST Council decided to impose 28% tax on online gaming, horse trading and casinos while lowering tax on food and beverages consumed in cinema halls to 5%.

 

OUTLOOK

 

Today morning, Hang Seng is up 1.1%, Shanghai is little changed and Nikkei is down 0.9%. GIFT Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 19303, the low made Friday, continued to be immediate support while 19523, the top made on Friday, continues to be immediate hurdle.

 

Nifty surged to touch a high of 19515 before closing at 19439.

 

19523, the top made on Friday, continues to be immediate hurdle, upon crossover of which 19750 would be next target; 19303, the low made Friday, continues to be immediate support, below which, a rising trendline adjoining tops made since mid-May, would land support in 19150-19200 region.

 

For Banknifty, 20-DMA, placed around 44350, is the next downside level to eye. On the way up, 45655, the top made last week, is the immediate hurdle.

 

India's June CPI and May IIP data will be released today.

 

TCS and HCL Tech will report their quarterly earnings today.