NIFTY IT INDEX SET TO REVERSE ITS UNDERPERFORAMCE

A HEALTHY WEIGHT-LOSS

10670 CONTINUES TO BE IMMEDIATE SUPPORT; 10840 UPSIDE TARGET

10670 CONTINUES TO BE IMMEDIATE SUPPORT; 10840 UPSIDE TARGET

WORLD MARKETS

US indices gained 0.8%-1.1% ahead of activation of levies on $34 billion in Chinese-made goods by the US on Friday, with Beijing expected to respond with its own levies on U.S. goods.

The Federal Reserve's latest minutes showed officials were concerned about letting the U.S. economy running too hot, as that could cause problems leading to a "significant economic downturn."

Trump yesterday said an additional $16 billion of Chinese products will be subject to tariffs in two weeks, also adding that he was considering more duties on $500 billion in Chinese goods.

Data from ADP and Moody's Analytics showed jobs grew by 177,000 in June, missing expectations. Jobs growth for May was revised higher, however. Weekly jobless claims rose unexpectedly last week to 231,000.

European markets rose 0.4%-1.2%. Auto stocks rose amid news German carmakers were now prepared to support an elimination of EU tariffs on cars imported from the U.S.

Oil fell 1.6% to settle at $72.94 after surprise rise in US crude inventories.

AT HOME

Benchmark indices ended lower by a fifth of a percent after a rangebound but choppy session. Sensex lost 71 points to settle at 35574 while Nifty finished at 10750, down 20 points. BSE mid-cap and small-cap indices slipped 0.7% and 0.4% respectively. BSE Consumer Durable index tumbled 2.8%, becoming top loser among the sectoral indices, followed by 1.7% lower Realty index. FMCG index climbed 1%, becoming top gainers, followed by 0.2% higher Finance and Auto indices.

FIIs net sold stocks worth Rs 159 cr but net bought index futures and stock futures worth Rs 704 cr and 192 cr respectively. DIIs were net sellers to the tune of Rs 297 cr.

Rupee depreciated 21 paise to end at 68.95/$.

The Karnataka government today announced a partial farm loan waiver of Rs 34000 crore, which will benefit farmers whose borrowings are less than Rs 2 lakhs.

Titan shares tumble after the company said that a high base last year and a one-off impact of Rs 250-crore sales getting advanced in anticipation of higher goods and services tax rate are likely to impact the quarter ended June adversely.

OUTLOOK

U.S. tariffs on $34 billion worth of Chinese goods from 818 product categories are set to take effect at 12:01 p.m. HK/SIN. China has announced retaliatory duties on the same value of U.S. products, also expected to kick in on Friday.

Today morning, Nikkei and Hang Seng are up 0.9% and 0.3% respectively while Shanghai is marginally in the red. SGX Nifty is suggesting about 20 points lower start for our market.

After Nifty took out the 20-DMA hurdle, we had given next target of 10840, which is the top made on 22nd June. Yesterday, after touching a high of 10786 in the initial trade, Nifty slipped to end at 10750 and is set to open lower today.

10840 continues to be upside target to eye. 10670 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

NIFTY TAKES OUT 20-DMA HURDLE; STAY LONG WITH THE STOP-LOSS OF 10670

NIFTY TAKES OUT 20-DMA HURDLE; STAY LONG WITH THE STOP-LOSS OF 10670

WORLD MARKETS

US markets were shut yesterday for Independence Day.

In Europe, CAC was up 0.1% but FTSE and DAX fell 0.3% each. Technology stocks led the losses after a slide in U.S. chip makers in the previous session.

Britain's IHS Markit services PMI rose to an eight-month high of 55.1 in June, further supporting recent signs of the U.K.'s tentative economic recovery. For Germany, Markit's final services PMI rose to 54.1 in June, climbing to its highest level in four months.

Chinese yuan appreciated after notching an 11-month low against the dollar earlier this week. The stabilization in the currency came after the People's Bank of China reassured markets about the currency.

AT HOME

After falling about a fifth of a percent in the initial trade, benchmark indices surged just under a percent from the bottom of the day to end higher by about seven tenth of a percent. Sensex settled at 35645, up 267 points while Nifty added 70 points to finish at 10770. BSE mid-cap index however fell 0.2% while small-cap index gained 0.4%. BSE Auto and Energy indices were the top gainers among the sectoral indices, rising 1.3% and 1% respectively while IT and Teck indices were the top losers, down 0.6% each, followed by 0.5% lower Power and Consumer Durable indices.

FIIs net sold stocks and index futures worth Rs 285 cr and 550 cr respectively but net bought stock futures worth Rs 94 cr. DIIs were net buyers to the tune of Rs 611 cr.

Rupee depreciated 16 paise to end at 68.73/$.

The Union Cabinet approved the proposal to hike minimum support price (MSP) for all Kharif crops by 1.5 times of the input cost for the 2018-19 season.

Nikkei India Services Business Activity Index rose to 52.6 in June from 49.6 in May, marking a 12-month high. Composite PMI Output Index, has risen to 53.3 in June from 50.4 in May.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

Nifty yesterday soared 70 points to end at 10770, taking out the 20-DMA hurdle placed at 10750 decisively.

As mentioned yesterday, 10840, the top made on June 22nd, is the next target as well as hurdle to eye. Above 10840, 10900-10930 would be the tougher resistance zone to tackle.

Meanwhile, immediate support on the hourly chart is placed around 10670, with the stop-loss of which, trading longs should be held on to.

10745 CONTINUES TO BE IMMEDIATE HURDLE, 10550 MAJOR SUPPORT

10745 CONTINUES TO BE IMMEDIATE HURDLE, 10550 MAJOR SUPPORT

WORLD MARKETS

US indices fell 0.5%-0.9% in shortened trading session as technology stocks fell sharply.

Equities were als nervous ahead of July 6 when U.S. tariffs on $34 billion in Chinese products are set to kick in which is widely expected to trigger a tit-for-tat response from Beijing.

Semiconductor maker Micron plunged 5.5% after media reports suggested that a Chinese court temporarily prohibited the sale of Micron chips in the local market.

Earlier, enrgy stocks contributed to higher start after West Texas Intermediate oil futures broke above $75 per barrel for the first time since November 2014, but pared gains to end at $74.14, up 20 cents.

Chinese yuan dropped to its lowest levels against the dollar in around 11 month.

European markets gained 0.6%-1.6%

AT HOME

After starting on a weak note, Sensex and Nifty rebounded more than half a percent from the bottom of the day to end higher by 0.3% and 0.4% respectively. Sensex added 114 points to settle at 35379 while Nifty finished at 10700, up 43 points. BSE Mid-cap and small-cap indices gained 0.7% and 0.4% respectively. BSE Healthcare and IT indices climbed 1.8% and 1.1% respectively, becoming top gainers among the sectoral indices while Metal index and Bankex were the top losers, down 0.3% and 0.2% respectively.

FIIs net sold stocks worth Rs 1043 cr but net bought index futures and stock futures worth Rs 47 cr and 481 cr respectively. DIIs were net buyers to the tune of Rs 279 cr.

Rupee appreciated 22 paise to end at 68.57/$.

OUTLOOK

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

After Nifty rebounded from the vicinity of 10550 support last week, we had said that 10745, where 20-DMA is placed, is the immediate hurdle, a crossover of which is required for a further upmove.

Nifty closed at 10657 after testing a high of 10736 on Monday but rebounded to end at 10700 yesterday.

10645 continues to be immediate hurdle above which 10840 would be the next target.

10605, the low made yesterday, is the immediate support below which 10550 would be the crucial support to eye.

US markets will be closed today for Independence Day.

NIFTY RESISTED NEAR 10745 HURDLE; 10550 CONTINUES TO BE IMPORTANT SUPPORT

NIFTY RESISTED NEAR 10745 HURDLE; 10550 CONTINUES TO BE IMPORTANT SUPPORT

WORLD MARKETS

After opening with cuts of more than half a percent on persisting trade frictions, US equities recouped all the losses through the session on the back of gains in technology shares and ended with gains of 0.2%-0.8%

Media reports on Sunday suggested that the Trump administration is reportedly looking into drafting a bill that would allow the White House to unilaterally increase trade tariffs without congressional consent. Commerce Secretary Wilbur Ross yesterda said that President Trump will not change his mind even if the stock market falls sharply on trade worries.

Also, the European Union threatened to impose new retaliatory tariffs worth $300 billion if the U.S. moves forward with penalties on European cars.

US crude fell 21 cents to $73.94.

European markets fell 0.6%-1.2%. Euro area jobless rate fell to 8.4% in May. The IHS Markit manufacturing purchasing managers' index fell to a 18-month low in June on concerns over growing trade barriers.

AT HOME

After falling a percent, benchmark indices recouped half of the losses in late noon session to end lower by half a percent. Sensex settled at 35264, down 159 points while Nifty lost 57 points to finish at 10657. BSE mid-cap and small-cap indices lost 0.7% each. BSE Telecom index nosedived 2.6%, becoming top loser among the sectoral indices, followed by 1.8% lower Metal index. IT and Consumer Durable indices were the top gainers, up 0.9% and 0.5% respectively.

FIIs net sold stocks and index futures worth Rs 1205 cr and 350 cr respectively but net bought stock futures worth Rs 459 cr. DIIs were net buyers to the tune of Rs 367 cr.

Rupee depreciated 33 paise to end at 68.79/$.

Core sector growth dipped to a 10-month low of 3.6% in May from 4.6% in April.

The Nikkei India Manufacturing Purchasing Managers' Index rose to 53.1 in June from 51.2 in May, marking the best level in 7-months.

Hero Motocorp sold 7.04 lac units, a growth of 12.9%. Bajaj Auto's June sales surged 65% y-o-y to 2.45 lac units. Escort sold 9983 tractors, which was a growth of 73%. Ashok Leyland posted 28% growth at 15791 units. M & M's tractor sales were up 22% at 40529 units.

OUTLOOK

Today morning, Hang Seng is down more than 2%, Nikkei is marginally in the red and Shanghai is up 0.2%. SGX Nifty is suggesting a modestly higher start for our market.

In yesterday's report we had mentioned that 20-DMA, placed around 10745, is the immediate hurdle above which 10840 would be the next target to eye.

Nifty, after touching a high of 10736 in the initial trade, slipped to end at 10657 and is set to open little changed today.

10745 continues to be immediate hurdle, a crossover of which is required for a fresh upmove. 10550 continues to be important support on the way down.

NIFTY REBOUNDS SMARTLY AFTER TESTING 10550 SUPPORT; 10745, 10837 UPSIDE HURDLES

NIFTY REBOUNDS SMARTLY AFTER TESTING 10550 SUPPORT; 10745, 10837 UPSIDE HURDLES

WORLD MARKETS

US indices gained 0.1%-0.2% on Friday.

Canada announced retaliatory tariffs on Friday that target $12.6 billion in U.S. goods in response to tariffs on its steel and aluminum imports.

Media reports suggested that Trump has repeatedly told top White House officials that he wants the U.S. to withdraw from the World Trade Organization.

Nike shares jumped 11% percent and reached an all-time high after the company reported quarterly earnings and revenue that beat expectations.

Oil prices rose on looming sanctions on Iran. WTI rose 70 cents or 1% to $74.15, its best closing since Nov. 24, 2014 while Brent surged $1.59 or 2% to $78.44, just shy of a 3-1/2 year high.

European markets rose 0.3%-1.1%. Political leaders reached a tentative agreement on migration after almost 10 hours of talks at a summit in Brussels, Belgium. Eurozone inflation rose to reach 2% in June, up from 1.9% a month earlier.

For the week, Dow and S & P 500 fell 1.3% each while Nasdaq was down 2.4%. For the Dow, it was the third consecutive down week while Nasdaq and S & P 500 were down for the second straight week. European markets fell 0.6%-2.2%, marking the second straight down week. Asian markets fell 0.9%-1.5% with Shanghai down for the sixth straight week and Hang Send down for the third week.

China's official manufacturing PMI declined to 51.5 for the month of June, missing the 51.6 forecast.

AT HOME

Sensex and Nifty soared 1.1% and 1.2% respectively, registering the biggest single day gain since 31st May and 5th April respectively. Sensex added 385 points to settle at 35423 while Nifty finished at 10714, up 125 points. BSE mid-cap and small-cap indices climbed 1.8% and 1.9% respectively. BSE mid-cap had its best day since 5^th April and for small-cap index, this was the largest gain since 7^th June. All the BSE sectoral indices ended in green with Consumer Durable index leading the tally, up 2.9%, followed by 2.8% higher Metal and Capital Goods indices.

FIIs net sold stocks worth Rs 157 cr while DIIs were net buyers to the tune of Rs 2263 cr.

Rupee appreciated 32 paise to end at 68.46/$.

For the week, Sensex and Nifty fell 0.7% and 1% respectively.

Maruti Suzuki reported 36.3% rise in June sales at 1.45 lac units. M & M sales were up 26% at 45155 units. For Eicher Motors, Royal Enfield sales grew 18% to 74477 units while CV sales were up 63% at 6390 units. Tata Motors domestic sales were up 54% at 56773 units.

OUTLOOK

Oil prices are trading lower by nearly a percent today after Trump said in a tweet over the weekend that Saudi Arabia had agreed to raise production by up to 2 million barrels per day.

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

Nifty, after nearly testing 10550 support on Thursday, rebounded smartly on Friday to end at 10714.

10745, where 20-DMA is placed, is the immediate resistance on the way up above which 10837, the immediate previous top made on 22nd June, would be the next hurdle to eye.

10550 continues to be important support.