STAY LONG WITH THE STOP-LOSS OF 23750

 

STAY LONG WITH THE STOP-LOSS OF 23750

 

WORLD MARKETS

 

U.S. indices fell 0.1%-0.7% on Friday after digested fresh economic data that indicated slowing inflation, as well as better-than-expected consumer sentiment figures.

 

The personal consumption expenditures price index — the Federal Reserve’s preferred inflation gauge — slowed to its lowest annual rate in more than three years. The headline and core readings were both up 2.6% year-on-year, in-line with expectations. The University of Michigan consumer sentiment index for June came in higher than expected, rising to 68.2 from the preliminary 65.6 reading. The one-year inflation outlook fell to 3% from 3.3% expected in May.

 

U.S. 10-year treasury yield jumped 12 bps to 4.40%. Dollar index was little changed at 105.85. Gold too was flat at $2326 per ounce.

 

WTI crude futures fell 20 cents to $81.54 while Brent futures rose 2 cents to $86.41 per barrel.

 

In Europe, FTSE and CAC fell 0.2% and 0.7% respectively while DAX inched up 0.1%. French consumer prices rose 2.5% from a year ago in June, versus 2.6% the previous month. Spanish inflation dipped to 3.5% year on year in June, from 3.8% the month prior. Italian inflation ticked up slightly, rising 0.8% from June 2023. The U.K. economy grew by 0.7% in the first three months of the year, more than initially estimated.

 

For the week, Nasdaq added 0.2% while the S&P 500 and the Dow inched lower by less than 0.1%.

 

AT HOME

Sensex and Nifty fell 0.3% and 0.2% respectively, snapping a 4-day winning streak. Sensex settled at 79032, down 210 points while Nifty lost 35 points to finish at 24009. Nifty mid-cap and small-cap indices gained 0.6% and 0.8% respectively. Nifty Bank and Financial Services indices slipped 0.9% and 0.7% respectively, becoming top losers among the sectoral indices while Oil & Gas index was the top gainer, up 1.7%, followed by 1.1% higher Pharma and Healthcare indices.

 

FIIs net sold stocks worth Rs 23 cr but net bought index futures and stock futures worth Rs 1711 cr and 5128 cr respectively. DIIs were net buyers to the tune of Rs 6658 cr.

 

Rupee appreciated 8 paise to end at 83.38/$.

 

For the week, Sensex and Nifty gained 2.4% and 2.2% respectively, extending the winning streak to fourth consecutive week.

 

Government reported a revenue surplus of Rs. 90000 cr. for April to May 2024 period aided by strong cash balance and RBI dividend. Fiscal deficit for this period stood at just Rs. 57000 cr or 3% of FY25 target. Core sector growth in May stood at 6.3% vs 6.7% in the previous month.

 

OUTLOOK

 

Today morning, Nikkei is up 0.4% while Hang Seng and Shanghai are little changed. GIFT Nifty is suggesting a flattish start for our market.

 

In Friday's report we had said that 24700, one of the extension level on Nifty's long term chart, was the next upside target to eye while 23700 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 24174, slipped to end at 24010.

 

24174, the top made on Friday, coincided with a rising trendline adjoining tops made in May and early June and hence is the immediate hurdle to eye. If this hurdle is taken out, 24400, followed by 24700, would be next upside levels to eye. 23750 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 52000 is the immediate support on the hourly chart, upon breach of which, 51138, the low made during the week, would be next downside level to eye. On the way up, 53180, the top made last week, is the immediate hurdle, upon crossover of which, 54100 would be next upside level to eye. Meanwhile, trading longs can be held on to with the stop-loss of 52000.

Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.