10875 CONTINUES TO BE IMMEDIATE TARGET; 10675 CONTINUES TO BE IMMEDIATE SUPPORT

10875 CONTINUES TO BE IMMEDIATE TARGET; 10675 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.1%-0.3% amid trade tensions as the G-7 summit kicked off.

In a fresh tweet, Trump accused France and Canada of levying "massive tariffs" and establishing "non-monetary barriers." This came after French President Emmanuel Macron said that While Trump may not mind being isolated, "we don't mind being six, if needs be,”.

In Europe, CAC was flat while FTSE and DAX fell 0.3% each. Italy tumbled 1.9%

For the week, US indices gained 1.2%-2.8%. In Europe, FTSE and CAC fell 0.3% each while DAX was up 0.3%. In Asia, Nikkei and Hang Seng soared 2.4% and 1.5% respectively while Shanghai was down 0.3%.

U.S. President Donald Trump on the weekend withdrew his support for a G-7 declaration and criticized Canadian Prime Minister Justin Trudeau for being "dishonest and weak."

AT HOME

After falling about half a percent in the first half, benchmark indices recouped most of the losses later to end just marginally lower. Sensex settled at 35443, down 19 points while Nifty finished 1 point lower at 10767. BSE mid-cap and small-cap indices gained 0.4% and 0.6% respectively. BSE Healthcare index soared 3.6%, becoming top gainer among the sectoral indices, followed by 0.8% lower IT and Energy indices each. Power and Metal indices were the top losers, down 0.7% and 0.4% respectively.

FIIs net sold stocks and index futures worth Rs 222 cr and 853 cr respectively but net bought stock futures worth Rs 127 cr. DIIs were net buyers to the tune of Rs 459 cr.

Rupee depreciated 38 paise to end at 67.50/$.

For the week, Sensex and Nifty gained 0.6% and 0.7% respectively, extending the winning streak to third straight week.

Sun Pharma soared after the US Food and Drug Administration (USFDA) updated the status of the company’s Halol facility to VAI (voluntary action initiated) which would imply that there would be no re-inspection required at its Halol unit.

The National Stock Exchange (NSE) on Saturday decided to introduce additional surveillance measures for 60 companies that are undergoing insolvency resolution process (IRP) as per the Insolvency and Bankruptcy Code (IBC).

OUTLOOK

Today morning, Nikkei is up 0.3%, Hang Seng is flat and Shanghai is down 0.5%. SGX Nifty is suggesting about 25 points higher start for our market.

After Nifty crossed 10770 hurdle, we have been working with target of around 10875, where a tendline adjoining tops made in January and May is placed. Nifty, after touching a high of 10818 on Thursday, slipped to end at 10768 and ended flat on Friday.

10875 continues to be upside target as well as hurdle to eye. 10675 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

STAY LONG WITH THE STOP-LOSS OF 10675

STAY LONG WITH THE STOP-LOSS OF 10675

WORLD MARKETS

Dow rose 0.4% while S & P 500 and Nasdaq fell 0.1% and 0.7% respectively with the Nasdaq snapping a four-day winning streak. Dow was boosted by gains in McDonald's, which rose more than 4%.

Oil rose on worries about a drop in Venezuelan exports with WTI up 1.9% to $65.95 and Brent up 2.7% to $77.36.

Commerce Secretary Wilbur Ross said that the U.S. struck a deal with China's ZTE to end American sanctions against the company.

The 10-year U.S. Treasury note yield declined to 2.92% from around 2.97% seen on the day before.

Emerging markets, led by Brazil, sold-off. Brazillian real plunged against the dollar and the iShares MSCI Brazil ETF (EWZ) nosedived 5.1% on capital flows concerns.

European markets, except a 0.4% higher Spain, ended with modest cuts. German industrial orders dropped 2.5% in the month of April after falling 1.1% in the previous month, marking fourth consecutive negative reading. Eurozone grew 0.4% in the first quarter of the year — the lowest level since the third quarter of 2016.

AT HOME

Benchmark indices gained eight tenth of a percent, extending the winning streak to second straight day and closing at the highest level since 15th May. Sensex added 284 points to settle at 35463 while Nifty finished at 10768, up 83 points. BSE mid-cap and small-cap indices climbed 1.4% and 2% respectively. Except 0.2% lower Consumer Durable index, all the BSE sectoral indices ended in green with Realty index leading the tally, up 2.8%, followed by 1.6% higher Basic Material index.

FIIS net sold stocks worth Rs 525 cr but net bought index futures and stock futures worth Rs 101 cr and 694 cr respectively. DIIs were net buyers to the tune of Rs 1198 cr.

Rupee depreciated 20 paise to end at 67.12/$.

OUTLOOK

Today morning, Nikkei is marginally in the green while Hang Seng and Shanghai are down about 0.3% each. SGX Nifty is suggesting about 10726 about 46 points lower start for our market.

In yesterday's report we had said that 10770, the top made last week, was the immediate upside target as well as resistance above which, 10875, where a trendline adjoining tops made in January and May is placed, would be the next hurdle to eye.

Nifty crossed 10770 hurdle and surged all the way to 10818, but closed off-the day high at 10765. 10875 continues to be upside target as well as hurdle to eye. Immediate support on the hourly chart is placed around 10675, with the stop-loss of which, trading longs should be held on to.

10770 IS THE NEXT HURDLE; 10550 SUPPORT

10770 IS THE NEXT HURDLE; 10550 SUPPORT

WORLD MARKETS

US indices gained 0.7%-1.4%.

Financials were be biggest contributors to the gains as the benchmark 10-year Treasury note yield rose to 2.98%, following yields in Europe after the European Central Bank hinted at winding down its asset-purchasing program

ECB's chief economist, Peter Praet said that underlying strength in the euro area economy was making the central bank confident that inflation will move toward target, adding that the institution would next week discuss how it will wind down its 30 billion euro (about $35 billion) monthly-purchase program.

Euro strengthened and European bonds sold off on these comments.

European market, except a marginally lower CAC, gained 0.3%-1%. New Italian Prime Minister Giuseppe Conte presented his coalition's plans to crackdown on immigration and up welfare spending while cutting taxes on Tuesday.

WTI oil fell 1.2% to $64.73 after surprise jump in US crude inventories.

AT HOME

Benchmark indices gained about eight tenth of a percent to break three-day losing streak. Sensex added 275 points to settle at 35178 while Nifty finished at 10684, up 91 points. BSE mid-cap and small-cap indices gained 1.3% and 1.5% respectively. All the BSE sectoral indices ended in green with Telecom and Consumer Durable indices leading the tally, up 3% and 2.3% respectively.

FIIs net sold stocks and index futures worth Rs 81 cr and 491 cr respectively but net bought stock futures worth Rs 314 cr. DIIs were net buyers to the tune of Rs 712 cr.

Rupee appreciated 23 paise to end at 66.91/$.

Monetary policy committee voted unanimously to increase the benchmark repo rate by 25 bps to 6.25%, marking the first rate hike in more than four years.  The MPC however, maintained its stance as ‘neutral'. The committee raised its forecast on consumer inflation for the first half of ongoing fiscal year to 4.8-4.9%, from the 4.4-4.7% forecast earlier. For the second half, the forecast was upped to 4.7% from 4.4%. FY19 GDP growth forecast has been maintained at 7.4%.

Union Cabinet okayed a Rs 8,000 crore bailout package for sugar sector under which a minimum selling price of Rs 29 per kg has been fixed for sugar. The government will also create 30 lakh mt buffer of sugar stock to balance demand and supply mismatch.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.9% and SGX Nifty is suggesting about 40 points higher start for our market.

In yesterday's report we had mentioned that 10550 is the immediate support and

10690 is the immediate resistance above which 10770, the top made last week, would be the bigger hurdle to eye.

Yesterday, Nifty, after touching a high of 10698, closed at 10684 and is set to open above 10700 today.

10770, the top made last week, continues to be upside target as well as resistance to eye. Above 10770, 10875, where a trendline adjoining tops made in January and May is placed, would be the next hurdle to eye.

10550 continues to be important immediate support.

NIFTY REBOUNDS AFTER ACHIEVING 10558 TARGET; ALL EYES ON MPC

NIFTY REBOUNDS AFTER ACHIEVING 10558 TARGET; ALL EYES ON MPC

WORLD MARKETS

Dow ended marginally in the red while S & P 500 and Nasdaq rose 0.1% and 0.4% respectively amid a continued focus on trade tensions. Nasdaq rose to all-time high as Amazon and Netflix gained.

Media reports suggested that China reportedly agreed to purchase almost $70 billion in U.S. agriculture and energy products from the U.S. if the latter held off on imposing tariffs against Chinese imports.

White House economic advisor Larry Kudlow yesterday said that President Trump was considering separate negotiations with Canada and Mexico as NAFTA negotiations continue.

May ISM non-manufacturing index came in at 58.6, beating the expected print of 57.6.

WTI crude rose 77 cents or 1.2% to $65.52, rebounding from a near two-month low of $64.22 earlier in the session.

European markets, except a 0.1% higher DAX, lost 0.2%-1.2% with Italy being the top loser. The IHS Markit's final composite PMI for Eurozone fell to an 18-month low of 54.1.

AT HOME

Benchmark indices ended lower by three tenth of a percent after a volatile session, extending the losing streak to third consecutive day. Sensex settled 108 points lower at 34903 while Nifty finished at 10593, down 35 points. BSE mid-cap and small-cap indices saw deep cuts of 1.2% and 2.4% respectively.  Except 0.2% and 0.1% higher Energy and Oil & Gas indices respectively, all the BSE sectoral indices ended in red with Telecom and Capital Goods indices leading the tally, down 3.1% and 2% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 158 cr, 499 cr and 828 cr respectively. DIIs were net buyers to the tune of Rs 474 cr.

Rupee depreciated 3 paise to end at 67.14/$.

India's May Nikkei Services PMI came in at 49.6, down from 51.4 in April.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 0.1% and 0.4% respectively but Shanghai is down 0.2%. SGX Nifty is suggesting a marginally lower start for our market.

After Nifty broke the 10640 support, we had given downside target of 10558, which was the low made last week. Yesterday Nifty touched a low of 10550 before closing at 10593, achieving this target and vindicating our view.

10550 is the immediate support to eye below which 10470, where 34-week moving average is placed, would be the next important support to eye.

10690 is the immediate resistance above which 10770, the top made last week, would be the bigger hurdle to eye.

Key event to watch out would be Monetary Policy Committee's interest rate decision. While most agree that inerest rate hike is coming owing to retail inflation, which is running above RBI's 4% target level, the views are divided over whether the same would happen today or at the next meeting. However, even if it doesn't come today, the MPC is expected to change its stance from "Neutral" to a tightening bias. Markets would watch out for cues to future interest rate hikes.

10558 IS THE NEXT SUPPORT; 10765 RESISTANCE

10558 IS THE NEXT SUPPORT; 10765 RESISTANCE

WORLD MARKETS

Dow and Nasdaq gained 0.7% each while S & P 500 rose 0.4%. Nasdaq notched a record close as shares of Apple and Amazon hit new highs.

Retail stocks too contributed to gains. Energy stocks however fell as oil fell with WTI down 1.6% to $64.75 and Brent down 2% at Rs $75.29 a barrel.

European markets, except 0.4% lower Italy, gained 0.1%-1.2%

AT HOME

After gaining about seven tenth of a percent at the open, benchmark indices reversed these gains through the session to end lower by six tenth of a percent. Sensex settled 215 lower at 35011 while Nifty lost 68 points to finish at 10628. BSE mid-cap and small-cap indices tumbled 0.8% and 2.1% respectively. BSE Realty and Power indices nosedived 3.2% and 2.3% respectively, becoming top losers among the sectoral indices while Energy and IT indices were the top gainers, up 0.4% each.

FIIs net sold stocks and stock futures worth Rs 203 cr and 1587 cr respectively but net bought index futures worth Rs 553 cr. DIIs were net buyers to the tune of Rs 338 cr.

Rupee depreciated 5 paise to end at 67.11/$.

OUTLOOK

Today morning, Nikkei is up 0.2% while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting a marginally lower start for our market.

In yesterday's report we had reiterated the view that 10640 is the immediate support, with the stop-loss of which, trading longs should be held on to.

Nifty fell 68 points to settle at 10628, breaking this support. 10558, the low made last week, is the next downside target to eye. 10470, where 34-week moving average is placed, would be the next support below 10558.

10765, where a double top on hourly chart is in place, is the immediate hurdle, a crossover of which is required for a fresh upmove.

RBI's Monetary policy committee begins its two day meeting today.

STAY LONG WITH THE STOP-LOSS OF 10640

STAY LONG WITH THE STOP-LOSS OF 10640

WORLD MARKETS

US indices soared 0.9%-1.5% on Friday on the back of a stronger-than-expected jobs report.

The U.S. economy added 223,000 jobs in May, much higher than the expected 188,000 figure. Average hourly earnings rose 0.3% last month while the unemployment rate ticked down to 3.8%.

Treasury yields jumped on the report, with the benchmark 10-year yield trading at 2.89% and the two-year yield rising to 2.47%.

European markets gained 0.3%-1.8% after Italian parties averted the prospect of a snap election and Spain's leader was ousted and replaced.

For the week, Dow fell -0.5% while S & P 500 and Nasdaq gained 0.5% and 1.6% respectively. Main European markets fell 0.4%-1.6%. In Asia, Nikkei and Shanghai fell 1.2% and 2.1% respectively while Hnag Seng was off 0.3%.

U.S.-China trade talks yielded no major breakthroughs over the weekend. China threatened that previous trade agreements negotiated by the countries "will not take effect" if the Trump administration goes ahead with a planned tariff increase.

AT HOME

After a positive start, benchmark indices saw a sustained downward move through the session to end with cuts of nearly a third of a percent. Sensex lost 95 points to settle at 35227 while Nifty finished at 10696, down 40 points. BSE mid-cap and small-cap indices nosedived 1% and 1.6% respectively. BSE Power and Utilities indices tumbled 1.9% and 1.7% respectively, becoming top losers among the sectoral indices while Auto and Telecom indices were the top gainers, up 0.7% and 0.4% respectively.

FIIs net sold stocks and index futures worth Rs 203 cr and 215 cr respectively but net bought stock futures worth Rs 153 cr. DIIs were net buyers to the tune of Rs 338 cr.

Rupee appreciated 35 paise to end at 67.06/$, the strongest level in a month.

India's Nikkei May manufacturing PMI came in at 51.2, down from 51.6 in the previous month.

Revenue collection from Goods and Services Tax (GST) declined to Rs 94,016 cr in May from the Rs 1.03 lakh cr mop-up in April.

Maruti reported 26% growth in May sales at 1.72 lakh units. Eicher Motor reported 23% rise in Royal Enfield sales at 74697 units. Ashok Leyland sold 51% more vehicles at 13659 units. M & M's tractor sales were up 14% at 29330 units while auto sales were up 12% at 46849 units. TVS Motor posted 10% growth at 3.09 lakh units. Tata Motors May sales surged 58% to 54295 units.

OUTLOOK

Today morning, Nikkei and Hang Seng are up more than a percent, Shanghai is up 0.3% and SGX Nifty is suggesting about 45 points higher start for our market.

After Nifty took out the 10717 hurdle on Thursday, we had given an upside target of 10875 and had asked holding on to long positions with the stop-loss of 10640.

Nifty, on Friday, fell 40 points to settle at 10696 but is set to open near 10750 today. 10875 continues to be upside target to eye. 10640 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

STAY LONG WITH THE STOP-LOSS OF 10640 FOR 10875

STAY LONG WITH THE STOP-LOSS OF 10640 FOR 10875

WORLD MARKETS

US indices fell 0.3%-1% on the back of trade war concerns.

The Trump administration said tariffs on steel and aluminum imports from EU, Canada and Mexico will take effect at midnight Thursday.

The EU responded by saying it would impose countermeasures of its own, while Canada Foreign Minister Chrystia Freeland said the country plans to slap dollar-for-dollar tariffs on the U.S. Mexico said it would impose tariffs on apples, pork bellies, and flat steel imported from the U.S.

In economic news, US consumer spending jumped 0.6% last month, the biggest gain in five months. The personal consumption expenditures (PCE) price index — the Federal Reserve's preferred measure of inflation — rose 0.2% in April.

Oil fell on the back of all-time high U.S. production and expectations of higher OPEC output. WTI fell 1.7% to $67.06.

European markets fell 0.2%-1.4% with DAX leading the losses on reports that Trump hopes to block Germany's luxury carmakers from the U.S. market. On the data front, the euro zone inflation rate jumped to 1.9% in May from 1.2% the previous month.

AT HOME

Benchmark indices soared a percent and fifth on the expiry day of the May derivative series, registering biggest single day gain in nearly two months. Sensex climbed 416 points to settle at 35322 while Nifty finished at 10736, up 122 points. BSE mid-cap and small-cap indices however fell 0.2% and 0.6% respectively. BSE Bankex and Finance indices soared 1.9% and 1.7% respectively, becoming top gainers among the sectoral indices while Consumer Durable index was the top loser, down 1%, followed by 0.8% lower Realty and Healthcare indices.

FIIs net sold stocks and index futures worth Rs 15 cr and 643 cr respectively but net bought stock futures worth Rs 1208 cr. DIIs were net sellers to the tune of Rs 266 cr.

Rupee appreciated 2 paise to end at 67.40/$.

For the May derivative series, Nifty gained 1.1%.

The Indian economy grew 7.7% in January-March, up from 7% growth registered in Q3 and marking the fastest pace in nearly two years. For the entire fiscal year 2017-18, India grew at 6.7%, marginally higher than the 6.6% expansion projected in February and slowest in the last four years.

OUTLOOK

Today morning, Nikkei is up 0.4%, Hang Seng is flat and Shanghai is down 0.4%. SGX Nifty is suggesting about 20 points higher start for our market.

After Nifty rebounded from the vicinity of 10565 support on Wednesday, we had said that 10717, the top made Tuesday, is the immediate hurdle to eye.

Nifty yesterday soared 122 points to settle at 10736, taking out this hurdle.

Next target to eye on the way up is around 10875, where a trendline adjoining tops made in January and May is placed. Immediate support on the hourly chart is placed around 10640, with the stop-loss of

Auto companies will report May sales data today.