STAY LONG WITH THE STOP-LOSS OF 19303

 

STAY LONG WITH THE STOP-LOSS OF 19303

 

WORLD MARKETS

 

U.S. indices gained 0.1%-1.6%, extending the winning streak to fourth consecutive day and with the Nasdaq again leading the tally, after more inflation data came in softer than expected.  Nasdaq and S&P 500 closed at the highest level since April 2022.

 

June’s producer price index rose 0.1% y-o-y, lower than the 0.2% estimate. Core PPI rose 0.1% — also lower than expectations. Initial jobless claims unexpectedly fell by 12,000 to a seasonally-adjusted 237,000 for the week ended July 8.

 

U.S. 10-year treasury yield fell 9 bps to 3.769%. Dollar index plunged 0.8% to 99.78. Gold inched up 0.2% to $1960 per ounce.

 

Oil prices rose climbed to their highest in nearly three months. Brent crude futures rose 1.6% to $81.36 per barrel and WTI crude futures rose 1.5% to $76.89.

 

European markets gained 0.3%-0.8%. Britain’s economy shrank by 0.1% in May, which was less than the expected contraction of 0.3%.

 

AT HOME

 

After rising nearly a percent, Sensex and Nifty gave away most of the gains in late noon plunge to end higher by 0.2% each. Sensex settled at 65558, up 165 points while Nifty added 29 points to finish at 19413. Nifty mid-cap and small-cap indices tumbled 0.8% and 1% respectively with the later suffering worst cut in 3-weeks. Nifty PSU Bank and Media indices nosedived 2.4% and 1.9% respectively, becoming top losers among the sectoral indices while IT and Realty indices were the top gainers, up 1.8% and 1% respectively.

 

FIIs net bought stocks worth Rs 2238 cr but net sold index futures and stock futures worth Rs 907 cr and 1965 cr respectively. DIIs were net sellers to the tune of Rs 1197 cr.

 

Rupee appreciated 18 paise to end at 82.07/$.

 

Wipro posted weak results which were in-line with estimate. Constant currency revenue declined 2.8% q-o-q. The company guided for -2% to +1% revenue growth for Q2.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.5% and 0.1% respectively while Nikkei is off 0.3%. GIFT Nifty is suggesting nearly 75 points higher start for our market.

 

In yesterday's report we had said that 19523 continued to be immediate hurdle, upon crossover of which 19750 would be next target.

 

Nifty, after touching a high of 19567, reversed and plunged all the way to 19385 before closing at 19413. The benchmark is set to open above 19450 today.

 

19750 continues to be next upside target to eye; 19303, the low made last Friday, continues to be immediate support, upon breach of which, 20-DMA, placed around 19100, would be next support to eye.

 

For Banknifty, 20-DMA and 34-DMA, placed around 44400 and 44300 respectively, are the next downside level to eye; 45100-45200 continues to be immediate resistance zone, above which, 45655, the top made last week, would be next target.

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