9710-9590 CONTINUES TO BE IMMEDIATE RANGE

9710-9590 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS                             

Dow and S & P 500 ended marginally in the green while Nasdaq added 0.4%, digesting former FBI Director James Comey's testimony.

Comey told the Senate Intelligence Committee he believed Trump had directed him in February to drop an FBI probe into former national security adviser, Michael Flynn, as part of the broader Russia investigation. Comey would not say whether he thought the president sought to obstruct justice, but added it would be up to special counsel Robert Mueller, who is now investigating the Russia allegations, "to sort that out." Comey did not make any major disclosures about any links between Trump or his associates and Russia.

Bond yields rose slightly, with the benchmark 10-year note yield near 2.208%, while the two-year note yield traded near 1.33%. Dollar index rose more than half a percent to 97.20.

European Central Bank kept interest rates unchanged. It dropped all references to a future rate cut from its statement but added that it would be ready to extend its quantitative easing (QE) program if needed. The euro fell 0.4% to $1.1216 against the dollar.

European markets were mixed with 0.4% lower FTSE, flat CAC, 0.3% higher DAX and 1.5% higher Italy.

AT HOME

Benchmark indices ended lower by a fifth of a percent after trading in a narrow range. Sensex lost 58 points to settle at 31213 while Nifty finished at 9647, down 17 points. BSE mid-cap and small-cap indices outperformed yet again, rising 0.2% and 0.3% respectively. BSE Oil & Gas and IT indices lost 1.4% and 1.3% respectively, becoming top losers among the sectoral indices while Healthcare index was the top gainer, up 1.6%, followed by 0.7% higher Metal index.

FIIs net bought stocks and index futures worth Rs 91 cr and 332 cr respectively but net sold stock futures worth Rs 352 cr. DIIs were net sellers to the tune of Rs 739 cr.

Rupee appreciated 11 paise to end at 64.21/$.

OUTLOOK

Exit polls showed U.K. Prime Minister Theresa May's Conservative Party might have lost its parliamentary majority, winning just 314 seats of the 326 seats required for a majority. The British pound tumbled to as low as $1.2704, down from levels around the $1.295 handle earlier.

Today morning, Nikkei is up about eight tenth of a percent while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting a flattish start for our market.

As we have been mentioning, 9710, the top made Tuesday, is the immediate hurdle, a crossover of which is required for a fresh upmove. 9800 would be the next upside target if that happens.

9590 continues to be immediate support, below which 20 DMA and 34 DMA, placed around 9540 and 9450 respectively, would be the next downside supports to eye.

Traders are advised to keep a stop-loss of 9590 in long positions.

9800 ABOVE 9710; 9590 CONTINUES TO BE IMMEDIATE SUPPORT

9800 ABOVE 9710; 9590 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices gained 0.2%-0.4% ahead of Comey testimony, UK election and ECB policy decision, all slated for Thursday.

WTI oil plunged 5.1% to $45.72 a barrel after the Energy Information Administration reported a surprise build in crude inventories.

In Europe, FTSE tumbled 0.6% while CAC and DAX were down 0.1% each. German factory orders fell by 2.1% in April.

AT HOME

Benchmark indices ended higher by a fourth of a percent after a choppy session. Sensex added 81 points to settle at 31271 while Nifty finished at 9664, up 27 points. BSE mid-cap and small-cap indices outperformed, rising 0.5% and 0.8% respectively. Except a 2% and 1.5% cut in IT and Teck indices respectively, all the BSE sectoral indices ended in green with Healthcare and Metal indices leading the tally, up 1.1% and 1% respectively.

FIIs net bought stocks worth Rs 74 cr but net sold index futures and stock futures worth Rs 106 cr and 19 cr respectively. DIIs were net buyers to the tune of Rs 166 cr.

Rupee appreciated 9 paise to end at 64.33/$.

RBI left repo rate unchanged at 6.25% but cut the SLR by 50 bps to 20%. It also maintained a neutral stance on monetary policy and said that premature action could lead to “disruptive policy reversals later” and damage the credibility of monetary policy. Significantly, however, the RBI cut its projection for consumer inflation to 2-3.5% in April to September, down from 4.5% earlier, and to 3.5-4.5% in October to March, down from 5%. The apex bank also cut is FY18 GVA forecast to 7.3% from 7.4%.

OUTLOOK

The second estimate of first quarter GDP showed that the Japanese economy grew 0.3% compared to the previous quarter, lower than the 0.5% expected. Y-o-Y growth stood at 1% compared to the 2.2% forecast.

Today morning, Asian markets are trading flat to marginally lower and SGX Nifty is suggesting a flattish start for our market.

After achieving 9700-9725 target, Nifty is in a consolidation mode. Once 9709, the top made on Tuesday, is taken out, 9800 would be the next upside target to eye.

9590, the bottom made last week, continues to be immediate support, with the stop-loss of which existing longs can be held on to.

General election in the United Kingdom will be held today wher Prime Minister Theresa May's Conservative Party is expected to win. However, recent opinion polls show the Conservative's lead narrowing.

Former FBI Director James Comey is due to testify before the Senate Intelligence Committee over whether U.S. President Donald Trump requested him to "drop" a probe into Michael Flynn, the ex-national security advisor. Comey's opening remarks have been released by the committee.

The European Central Bank is set to release its latest monetary policy decision today. While interest rates are expected to remain unchanged, the central bank may cut its inflation forecasts.

NIFTY RETREATS AFTER TESTING 9700-9725 TARGET AREA; 9590 IMMEDIATE SUPPORT

NIFTY RETREATS AFTER TESTING 9700-9725 TARGET AREA; 9590 IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices fell 0.2%-0.3%, looking ahead to ex-FBI Director James Comey's testimony and the UK general election.

 Comey is set to testify today before the Senate Intelligence Committee over whether U.S. President Donald Trump tried to intervene in a probe into former national security advisor Michael Flynn.

General election in the United Kingdom will be held today. While May is expected to emerge victorious, a Survation poll published last weekend placed her ruling right-wing Conservative Party ahead by just a single percentage point.

In economic news, US job openings hit a record high in April, according to the Job Openings and Labor Turnover Survey (JOLTS), which showed a total of 6.0 million openings.

The benchmark US 10-year note yield hit a low of 2.129%, its lowest since the days following the U.S. presidential election. Dollar index too hit a fresh seven-month low of 96.517. Gold prices hit their highest level in seven weeks.

European markets, except a 0.2% higher Italy, lost upot a percent, with DAX losing the most.  Retail sales in the euro zone rose slightly in April, the fourth consecutive monthly rise. Sentix investor sentiment index rose to 28.4 in June from 27.4 in May, hitting its highest level since nearly a decade.

AT HOME

After gaining about a third of a percent in the opening trade, benchmark indices tumbled about three fourth of a percent from the top of the day to end lower by four tenth of a percent. Sensex settled at 31190, down 119 points while Nifty lost 38 points to finish at 9637. BSE mid-cap and small-cap indices fell 0.6% each. Except a 2.3% and 1.6% higher IT and Teck indices respectively, all the BSE sectoral indices ended in red with Consumer Durables and Power indices leading the tally, down 2% and 1.6% respectively.

FIIs net bought stocks worth Rs 61 cr but net sold index futures and stock futures worth Rs 199 cr and 146 cr respectively. DIIs were net sellers to the tune of Rs 360 cr.

Rupee depreciated 7 paise to end at 64.43/$.

Met Dept upgrades monsoon forecast from 96% to 98% of Long Term Average (Error Margin +/-4%).

OUTLOOK

Today morning, except a modestly lower Nikkei, other Asian markets are trading with modest gains and SGX Nifty is suggeting about 20 points higher start for our market.

Nifty yesterday touched a high of 9709, testing the 9700-9725 target area we have been working with ever since 9530 hurdle was taken out.

9709, the top made yesterday, is now the immediate hurdle above which 9800 would be the next target.

9590, the bottom made last week, is the immediate support, a breach of which will generate a sell on the hourly chart. 20-DMA, placed around 9520, would be the next downside target if that happens.

Traders are advised to keep a stop-loss of 9590 in longs.

RBI is widely expected to leave key rates unchanged but soften its hawkish stance amid slower economic growth and record-low inflation.

NIFTY ON TRACK TO ACHIEVE 9725 TARGET; TRAIL STOP-LOSS TO 9580

NIFTY ON TRACK TO ACHIEVE 9725 TARGET; TRAIL STOP-LOSS TO 9580

WORLD MARKETS                             

US indices ended with cuts of 0.1%-0.2%

IHS Markit U.S. services PMI for May came in at 53.6, up from 53.1 in April. The May ISM nonmanufacturing index, came in at 56.9, just below a consensus estimate of 57.0.

The dollar index hit its lowest level since the November U.S. election on Monday after a jobs report Friday came in lower-than-expected.

Brent crude fell 1.5% to $49.21 while US crude fell 1.2% to $47.08 a barrel. The commodity was initially up following news that Saudi Arabia and other countries in the Middle East had severed diplomatic ties with Qatar. Qatar is the world's largest liquefied natural gas (LNG) exporter.

European markets fell 0.2%-1% with Italy leading the losses. Car sales in the U.K. dropped 8.5% in May after a tax increase came into effect in April.

AT HOME

Benchmark indices ended with modest gains to notch fresh record intraday as well as closing high. Sensex added 36 points to settle at 31309 while Nifty finished at 9675, up 22 points. BSE mid-cap and small-cap indices gained 0.2% and 0.6% respectively. BSE Consumer Durable index climbed 5.8%, becoming top gainer among the sectoral indices, followed by 1% each gain in Realty and Consumer Discretionary Goods & Services indices. Metal and Utilities indices were the top losers, down 0.6% and 0.3% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 477 cr, 195 cr and 477 cr respectively. DIIs were net buyers to the tune of Rs 14 cr.

Rupee appreciated 7 paise to end at 64.37/$, a three-week high.

India's Nikkei/IHS Markit Services PMI rose to a seven-month high of 52.2 in May, from April's 50.2.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto half a percent but SGX Nifty is suggesting a marginally higher start for our market.

Nifty yesterday touched a high of 9687 before closing at 9675, moving towards the 9725 target area we have been working ever since 9530 hurdle was taken out.

9725 continues to be immediate upside target to eye.

Immediate support on the hourly chart has moved up to 9580, with the stop-loss of which trading longs should be held on to.

9725 CONTINUES TO BE IMMEDIATE UPSIDE TARGET; 9550 SUPPORT

9725 CONTINUES TO BE IMMEDIATE UPSIDE TARGET; 9550 SUPPORT

WORLD MARKETS                             

US indices gained 0.3%-0.9% on Friday, shrugging off weaker-than-expected jobs report and notching fresh record high.

US economy added 138,000 jobs last month, well below the expected 185,000. Wages also grew less than expected, with average hourly earnings rising at a 2.5%t annualized rate. The unemployment rate, however, fell to 4.3% from 4.4%.

The dollar subsequently slipped to seven-month lows against the euro.

WTI crude fell 1.5% to $47.66 a barrel for its lowest close since May 10. Brent slipped 1.3% to $49.95.

European markets, except a flat FTSE and Italy, gained 0.2%-1.2% with DAX on the top.

For the week US indices gained 0.6%-1.5%. In Europe, FTSE ended flat while CAC was up 0.1% and DAX soared 1.8%. In Asia, Shanghai was down 0.2% but Hang Seng and Nikkei added 1.1% and 2.5% respectively.

Over the weekend, at least seven people were killed and 48 injured in a possible terror in Central London.

AT HOME

Benchmark indices gained four tenth of a percent on Friday, breaking two-day losing streak and notching a fresh record high. Sensex added 136 points to settle at 31273 while Nifty finished at 9654, up 37 points. BSE mid-cap and small-cap indices gained 0.7% and 0.5% respectively. BSE Realty index gained 1.2%, becoming top gainer among the sectoral indices, followed by 1.1% each rise in Healthcare and Consumer Durable indices. Oil & Gas and Energy indices were the top losers, down 0.4% and 0.2% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 59 cr, 210 cr and 1 cr respectively. DIIs were net buyers to the tune of Rs 222 cr.

Rupee appreciated 4 paise to end at 64.44/$.

For the week, Sensex and Nifty gained 0.8% and 0.6% respectively, extending the winning streak to fourth straight week.

GST council fixed rates for remaining stuff over the weekend. GST for Gold, gold jewellery, silver and diamond was fixed at 3%. Footwear will now have two tax slabs - 5% for footwear priced lower than Rs 500 and 18% for higher. Readymade garments below Rs 1000 will be taxed at 5% and at 12% otherwise. Biscuits will attract a uniform rate of 18% across all categories.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points higher start for our market.

9700-9725 is the target area we have been working with ever since 9530 hurdle was taken out on 26th May. Nifty touched a high of 9673 on Friday before closing at 9654.

9700-9725 continues to be immediate upside target to eye above which 10000 is the next major target we have been working with ever since 8970, the monthly top made in September 2016, was crossed earlier this year.

9550 is the immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.

9700-9725 CONTINUES TO BE UPSIDE TARGET; 9550 IMMEDIATE SUPPORT

9700-9725 CONTINUES TO BE UPSIDE TARGET; 9550 IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices climbed 0.6%-0.8% following stronger than expected private payroll data and ahead of key monthly jobs report.

Trump said that the U.S. would withdraw from the climate agreement, but wanted to negotiate for new arrangements that were more "fair" to the U.S. In response, European leaders, including German Chancellor Angela Merkel, said in a statement that the Paris agreement "cannot be renegotiated." The agreement aims to ensure global temperatures do not rise more than 2 degrees Celsius above pre-industrial levels.

Data from ADP showed private sector employment rose by 253,000 jobs compared to forecasts of 185,000. Weekly jobless claims came in at 248,000, above a forecast of 239,000. The ISM manufacturing index for May came in at 54.9, just below an estimate of 55.0. April construction spending fell 1.4% as against expectation of a gain of 0.5%.

Dollar index gained about 0.2% to 98.20.

European markets gained 0.3%-1%. Italian economy grew 0.5% in the first quarter, twice as fast as previously indicated by preliminary data posted last week.  House prices in the U.K. dropped for a third consecutive month in May for the first time since 2009.

AT HOME

Benchmark indices ended marginally in the red after trading in a narrow range, extending the losing streak to second day. Sensex fell 8 points to settle at 31138 while Nifty finished at 9616, down 5 points. BSE mid-cap and small-cap indices outperformed yet again, rising 0.5% and 1% respectively. BSE FMCG and Healthcare indices gained 1.2% each, becoming top gainers among the sectoral indices while Oil & Gas and Energy indices were the top losers, down 1.6% and 1.1% respectively.

FIIs net sold stocks and stock futures worth Rs 517 cr and 550 cr respectively but net bought index futures worth Rs 344 cr. DIIs were net buyers to the tune of Rs 172 cr.

Rupee appreciated 3 paise to end at 64.48/$.

India's May Nikkei Manufacturing PMI fell to 51.6 from 52.5 in April.

Eicher Motors reported 25% rise in Royal Enfield sales at 60696 units in May. Escorts total sales were up 29% at 6886 units. Maruti reported 11.3% growth at 1.37 lakh units. M & M posted 3% growth at 41895 units. Ashok Leyland however sold 8% less vehicles at 9071 units. SML Isuzu too saw 45.5% dip at 1052 units. Hero registered 8.7% growth at 8.34 lac units. TVS sold 2.82 lakh units, a growth of 15.7%.

OUTLOOK

Today morning, except a 0.3% lower Shanghai, other Asian markets are trading with gains of 0.2%-1.1% with Nikkei on the top and SGX Nifty is suggesting about 35 points higher start for our market.

At the risk of repeating, we have been gunning for target area of 9700-9725 after 9530 hurdle was taken out. The benchmark has touched a high of 9650 after that and was at 9616 yesterday.

9700-9725 continues to be immediate upside target. 9550 continues to be immediate support on the hourly chart, with the stop-loss of which trading longs should be held on to.

May non-farm payroll data, which will be released later in the day, is expected to show the U.S. economy added 185,000 jobs last month with unemployment rate steady at 4.4%.

TRAIL STOP-LOSS TO 9550

TRAIL STOP-LOSS TO 9550

WORLD MARKETS                             

US indices fell 0.1% each due to soft performance from financials and concerns over inflation after the Fed's Beige Book was released.

Beige Book revealed "some districts noted falling prices for certain final goods, including groceries, apparel and autos." Following the release of the Beige Book, the 10-year Treasury yield at one point dipped below 2.2% mark. Dollar index fell about 0.4% to 96.98.

In a tweet, Trump indicated that he might pull out of the Paris climate agreement.

WTI crude fell 2.7% to $48.32/bbl. Brent plunged 3% to $50.31.

European markets, except a marginally higher DAX, fell 0.1%-0.4%

AT HOME

Benchmark indices ended marginally in the red after trading in a narrow range through the session. Sensex lost 14 points to settle at 31146 while Nifty finished at 9621, down 3 points. BSE mid-cap and small-cap indices however climbed 0.9% and 1% respectively. BSE Metal index tumbled 1.4%, becoming top loser among the sectoral indices, followed by 0.8% cut in IT index.

FIIs net bought stocks and index futures worth Rs 1049 cr and 1129 cr respectively but net sold stock futures worth Rs 1072 cr. DIIs were net sellers to the tune of Rs 940 cr.

Rupee appreciated 15 paise to end at 64.50/$.

GDP growth slowed down to 6.1% in January-March quarter from 7% in the previous quarter. For the full year, growth stood at 7.1%, down from 7.9% in 2015-16.

Core sector growth slowed to 2.5% in April from 5.3% in March.

Petrol and diesel prices were hiked by Rs 1.23/litre and 89 paise/litre respectively.

OUTLOOK

China's May Caixin manufacturing PMI has come in at 49.6, down from 50.3 in April and marking an 11-month low.

Today morning, except a modestly lower Shanghai, other Asian markets are trading with gains of 0.2%-1% with Nikkei on the top and SGX Nifty is suggesting a flattish start for our market.

At the risk of repeating, we have been working with target area of 9700-9725 after 9530 hurdle was taken out.

Nifty yesterday touched a fresh record high of 9650 before closing at 9621, moving towards this target.

9700-9725 continues to be immediate target area. Immediate support on the hourly chart has moved up to 9550, with the stop-loss of which, trading longs should be held on to.