16350, 16450 ARE UPSIDE LEVELS TO EYE; 15900 IS IMMEDIATE SUPPORT

 

16350, 16450 ARE UPSIDE LEVELS TO EYE; 15900 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 ended marginally in the red while Nasdaq inched up 0.1% on Friday following a stronger-than-expected jobs report that will likely keep the Federal Reserve on track for its aggressive rate hikes.

 

June Nonfarm payrolls increased 372,000, better than the 250,000 estimate. The unemployment rate was 3.6%, which was unchanged from May.

 

US 10-year treasury yield rose 8 bps to 3.084%. Dollar index, after touching a high of 107.78, reversed to end 0.1% lower at 106.89. Gold inched up 0.1% to $1742 per ounce.

 

Brent crude futures rose $2.37, or 2.3%, to settle at $107.02 a barrel and WTI crude rose $2.06, or 2%, to $104.79 a barrel.

 

European markets gained 0.1%-1.3%

 

For the week, Nasdaq and S & P 500 climbed 4.6% and 1.9% respectively while Dow inched up 0.8%. Brent posted a weekly decline of about 4.1% and WTI a loss of 3.4%. Gold plunged 3.8% for its fourth straight weekly dip.

 

AT HOME

 

Benchmark indices rose nearly half a percent, extending the winning streak to third straight day and closing at the highest level after 9th June. Sensex settled at 54481, up 303 points while Nifty added 87 points to finish at 16220. Nifty mid-cap and small-cap indices rose 0.3% each. BSE Capital Goods and Power indices were the top gainers among the sectoral indices, rising 2.2% and 1.7% respectively while Metal index slipped 1%, becoming top loser, followed by 0.1% lower Basic Materials and Telecom indices.

 

FIIs net sold stocks worth Rs 109 cr but net bought index futures and stock futures worth Rs 743 cr and 892 cr respectively. DIIs were net buyers to the tune of Rs 35 cr.

 

Rupee depreciated 7 paise to end at 79.25/$.

 

For the week, Sensex and Nifty rose 3% each, extending the winning streak to third consecutive week.

 

OUTLOOK

 

Today morning, Nikkei is up 1.3% while Hang Seng and Shanghai are down 2% and 1% respectively. SGX Nifty is suggesting around 90 points lower start for our market.

 

In Friday's report we had said that 16350 was the next upside level to eye and had advised trailing the stop-loss in long positions to 15900.

 

Nifty, after touching a high of 16275, ended at 16220. The benchmark is set to open near 16150 today.

 

16350 continues to be next upside level to eye for Nifty above which, 16450 would be next target; 15900 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 35958, the top made in June, is the immediate upside target/resistance; 34200 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

TRAIL STOP-LOSS TO 15900

 

TRAIL STOP-LOSS TO 15900

 

WORLD MARKETS

 

US indices climbed 1.1%-2.3%, with S & P 500 and Nasdaq rising for the fourth straight session.

 

Initial jobless claims and continuing claims both ticked up slightly last week. The U.S. trade deficit for May came in slightly higher than expected at $85.5 billion but was still down month over month.

 

US 10-year treasury yield rose 9 bps to 3.004% and the 2-year Treasury yield climbed nearly seven bps to 3.028%. Dollar index was flat at 107. Spot gold rose 0.1% to $1,740.16 per ounce.

 

Brent crude futures settled 3.9% higher at $104.65 per barrel and WTI crude futures surged 4.3% to at $102.73, rebounding from steep losses the previous two sessions.

 

European markets rose 1.1%-3% as U.K. Prime Minister Boris Johnson resigned. Minutes of the latest ECB meeting showed that policymakers discussed a larger interest rate hike for July than the 25 basis points it eventually earmarked. German industrial production expanding by 0.2% month-on-month in May, as against a forecast of 0.3%, and was down 1.5% year-on-year.

 

AT HOME

 

Sensex and Nifty gained 0.8% and 0.9% respectively, extending yesterday's upmove. Sensex settled at 54178, up 427 points while Nifty added 143 points to finish at 16132. Nifty mid-cap and small-cap indices surged 1.4% and 1.6% respectively. All the BSE sectoral indices ended in green, with Metal and Consumer Durables indices leading the tally, up 4.5% and 3.2% respectively.

 

FIIs net sold stocks worth Rs 925 cr but net bought index futures and stock futures worth Rs 1263 cr and 133 cr respectively. DIIs were net buyers to the tune of Rs 981 cr.

 

Rupee appreciated 12 paise to end at 79.18/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.4% and 0.6% respectively while Shanghai is marginally in the green. SGX Nifty is suggesting around 100 points higher start for our market.

 

In yesterday's report we had said that 16172, the upper end of the gap created by gap-down opening on 13th June, was the next target and had advised trailing the stop-loss in longs to 15785, which was the low made Tuesday.

 

Nifty surged to touch a high of 16150 before closing at 16132. The benchmark is set to open above 16200 today.

 

16350 is the next upside level to eye; Immediate support on the hourly chart has moved up to 15900, with the stop-loss of which, trading longs can be held on to.

 

35270, the 78.6% retracement level of the recent 36083-32290 fall, is the next upside level for Banknifty, above which, 34-week moving average, placed around 36000, would be the next target; 34100 is the immediate support.

 

16172 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 15785

 

16172 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 15785

 

WORLD MARKETS

 

US indices gained 0.2%-0.4%, with the S&P 500 and Nasdaq Composite rising for the third consecutive day.

 

Minutes of the latest Fed meeting showed that the central bank was committed to bringing down inflation and that Fed members judged that an increase of 50 or 75 basis points would likely be appropriate at the next meeting.

 

ISM services PMI came in better than expected, though the report did show a slight slowdown in growth. Job openings also came in higher than expected, at more than 11 million. However, mortgage demand fell week over week even as rates declined.

 

US 10-year treasury yield rose nearly 12 bps to 2.934%. Dollar index rose half a percent to 107 Gold plunged 1.5% to $1738 per ounce, hitting lowest level after September 2021.

 

Brent crude tumbled 4.8% to $99.76 per ounce and WTI slipped 2.8% to $98.11, both hitting their lowest level in nearly 3-months.

 

European markets rose 1.2%-2%.

 

AT HOME

 

Benchmark indices climbed 1.1% each to close at the highest level after 10th June, 2022. Sensex settled at 53750, up 616 points while Nifty added 179 points to finish at 15990. Nifty mid-cap and small-cap indices gained 1.9% and 0.5% respectively. Except quarter of a percent lower Energy and Metal indices, all the BSE sectoral indices ended higher, with Auto and Consumer Discretionary Goods & Services indices on the top, up 2.7% and 2.5% respectively.

 

FIIs net sold stocks worth Rs 330 cr but net bought index futures and stock futures worth Rs 1738 cr and 1497 cr respectively. DIIs were net buyers to the tune of Rs 1464 cr.

 

Rupee appreciated 7 paise to end at 79.30/$.

 

OUTLOOK

 

Today morning, Nikkei is up half a percent, Shanghai is little changed while Hang Seng is down 0.9%. SGX Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that 16025, the top made Tuesday, which coincided with 34-DMA, was the important immediate hurdle while immediate support on the hourly chart has moved up to 15600, with the stop-loss of which, existing longs can be held on to.

 

Nifty rose to touch a high of 16011 before closing at 15990. The benchmark is set to open near 16050 today.

 

16172, the upper end of the gap created by gap-down opening on 13th June, is the next target; 15785, the low made Tuesday, would now act as immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 34650, followed by 35270, the 61.8% and 78.6% retracement levels of the recent leg of fall, are the upside levels to eye; 33757, the low made on Tuesday, is the immediate support.

 

NIFTY RETREATS FROM 34-DMA HURDLE

 

NIFTY RETREATS FROM 34-DMA HURDLE

 

WORLD MARKETS

 

After plunging 2% and more in the initial trade on recession worries, US indices made a spectacular rebound as falling treasury yields boosted tech stocks. Nasdaq and S & P 500 closed higher by 1.8% and 0.2% respectively while Dow cut the losses to just 0.4%.

 

US 10-year and 2-year Treasury yield briefly inverted, a move that has a strong historical track record as a recession indicator. The Bank of England said that the global economic outlook had “deteriorated materially.” The euro fell to its lowest level in two decades as fears of a recession in the euro zone ramped up.

 

May factory orders showed stronger-than-expected growth.

 

US 10-year treasury yield fell 11 bps to 2.809%. Dollar index surged 1.3% to 106.49. Gold tumbled 2.3% to $1765 per ounce.

 

WTI crude settled 8.24%, or $8.93, lower at $99.50 per barrel and Brent crude plunged 9.4%, or $10.73, to $102.77 per barrel.

 

European markets tumbled 2.5%-3%. The July Sentix Economic Index showed investor morale across the 19-country euro zone has plunged to its lowest level since May 2020. June’s euro area services PMI came in at 53.0, slightly above a forecast of 52.8 but down from 56.1 in May.

 

AT HOME

 

After gaining more than a percent in the morning, benchmark indices nosedived in noon to end lower by a fifth of a percent. Sensex settled at 53134, down 100 points while Nifty lost 24 points to finish at 15810. Nifty mid-cap and small-cap indices fell 0.3% and 0.1% respectively. BSE IT and Teck indices slipped 0.6% each, becoming top losers among the sectoral indices while Power and Utilities indices were the top gainers, up 0.6% each.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1296 cr, 922 cr and 247 cr respectively. DIIs were net sellers to the tune of Rs 258 cr.

 

Rupee plunged 42 paise to end at record low of 79.34/$.

 

OUTLOOK

 

Today morning, Nikkei is down more than a percent while Hang Seng and Shanghai are off 0.6% each. SGX Nifty is suggesting around 40 points higher star for our market.

 

In yesterday's report we had said that 34-DMA, placed around 16020, continued to be immediate hurdle.

 

Nifty, after touching a high of 16025, plunged all the way to 15785 before closing at 15810.

 

16025, the top made yesterday, which coincided with 34-DMA, is the important immediate hurdle, a crossover of which is required for a fresh upmove; On the way down, immediate support on the hourly chart has moved up to 15600, with the stop-loss of which, existing longs can be held on to.

 

34361, the top made yesterday, which coincided with the upper end of the gap created by gap-down opening on 13th June, is the immediate hurdle; 33300 is the immediate support.

 

STAY LONG WITH THE STOP-LOSS OF 15511

 

STAY LONG WITH THE STOP-LOSS OF 15511

 

WORLD MARKETS

 

US markets were shut yesterday for July 4 holiday.

 

In Europe, FTSE and CAC rose 0.9% and 0.4% respectively but DAX fell 0.3%. Euro zone producer prices for May rose 0.7% month-n-month and 36.3% y-o-y, slightly less than expected.

 

Dollar index was flat at 105.13. Gold fell 0.2% to $1807 per ounce.

 

Brent as well as WTI crude eased 0.3% each to $111.28 and $108.11 per barrel respectively.

 

AT HOME

 

After dipping nearly half a percent in the first hour, benchmark indices reversed the losses through the session to end higher by half a percent, snapping a 3-day losing streak. Sensex settled at 53234, up 326 points while Nifty finished at 15835, up 83 points. Nifty mid-cap and small-cap indices gained 0.7% and 0.64% respectively. BSE FMCG index climbed 2.5%, becoming top gainer among the sectoral indices, followed by 1.1% higher Bankex. Metal index was the top loser, down 1.5%, followed by half a percent lower Energy and Oil & Gas indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2150 cr, 615 cr and 358 cr respectively. DIIs were net buyers to the tune of Rs 1688 cr.

 

Rupee appreciated 10 paise to end at 78.95/$.

 

India's trade deficit soared to a record high of $25.63 bn in June from $24.3 bn in May. Exports rose 17% y-o-y while imports surged 51%.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1% each and Shanghai is marginally higher. US futures are up 0.4%-0.7%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had reiterated the view that 34-DMA, placed around 16030, was the immediate hurdle while 15511, the low made Friday, was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty rose to touch a high of 15852 before closing at 15835.

 

34-DMA, placed around 16020, continues to be immediate hurdle, upon crossover of which, 16172, the upper end of the gap created by gap-down opening on 13th June, would be the next target; 15511, the low made Friday, continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 34147, the top made last week, is the immediate hurdle, upon crossover of which, 34346, the upper end of the gap created by gap-down opening on 13th June, would be the next upside level to eye; Immediate support on the hourly chart has moved up to 33500, with the stop-loss of which, trading longs can be held on to.

 

15511 IS THE IMMEDIATE SUPPORT; 16030 IMMEDIATE HURDLE

 

15511 IS THE IMMEDIATE SUPPORT; 16030 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices climbed 0.9%-1.1% on Friday as treasury yields extended fall after soft economic data, pricing in a less aggressive Fed rate hike in July.

 

ISM manufacturing index for June dropped to 53, the lowest reading since June 2020. ISM’s new orders index also fell to 49.2 from 55.1, showing contraction for the first time since May 2020.

 

US 10-year treasury yield fell nearly 12 bps to 2.889%, nearing its lowest level since late May. Dollar index rose 0.4% to 105.12. Gold inched up 0.2% to $1810 per ounce.

 

Brent crude rose $2.71, or 2.5%, to $111.74 a barrel and WTI crude gained $2.81, or 2.7%, to $108.57 a barrel.

 

In Europe, FTSE was flat while DAX and CAC gained 0.2% and 0.1% respectively. Euro zone inflation soared to a record high of 8.6% year-on-year in June.

 

China's Caixin/Markit manufacturing PMI for June came in at 51.7, up from last month's reading of 48.1 and above estimate of 50.1. The official PMI for June stood at 50.2, returning to growth after three months. Bank of Japan’s quarterly business sentiment survey posted a sharp decline in the April-June period.

 

For the week, Dow, S & P 500 and Nasdaq fell 1.3%, 2.2% and 4.1% respectively, posting their fourth down week in five. In Europe, FTSE fell 0.6% while DAX and CAC were down 2.3% each. In Asia, Nikkei fell 1.6% but Hang Seng and Shanghai rose 1.4% each and Nifty inched up 0.34%.

 

AT HOME

After falling more than a percent and half in first hour, benchmark indices recouped most of the losses through the session to end 0.2% lower, extending the losing streak to third straight day. Sensex settled at 52907, down 111 points while Nifty finished at 15752, down 28 points. Nifty mid-cap and small-cap indices gained 0.5% and 0.4% respectively. BSE Energy and Oil & Gas indices tumbled 4% and 3.2% respectively, becoming top losers among the sectoral indices while FMCG and Realty indices were the top gainers, up 2.5% and 1.6% respectively.

 

FIIs net sold stocks and index futures worth Rs 2325 cr and 543 cr respectively but net bought stock futures worth Rs 318 cr. DIIs were net buyers to the tune of Rs 1311 cr.

 

Rupee depreciated 8 paise to end at 79.05/$.

 

India’s S & P Global Manufacturing PMI fell to 53.9 in June from 54.6in May, marking the weakest pace of growth since last September.

 

For the week, Sensex and Nifty gained 0.3% each, extending the winning streak to second consecuvie week.

 

OUTLOOK

 

Today morning, Nikkei is up 0.8% while Hang Seng and Shanghai are down 0.5% and 0.2% respectively. SGX Nifty is suggesting a flattish start for our market.

 

In Friday's report we had said that 16030, around which 34-DMA was placed, continued to be immediate hurdle, while 15550 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a low of 15511, rebounded to end at 15752.

 

15511, the low made Friday, is the immediate support on the hourly chart, upon breach of which, 15367 and 15183, the bottoms made on 23rd and 17th June respectively, would be the next downside levels to eye; On the way up 34-DMA, placed around 16030, is the immediate hurdle, upon crossover of which, 16172, the upper end of the gap created by gap-down opening on 13th June, would be the next target; Meanwhile, trading longs can be held on to with the stop-loss of 15511.

 

For Banknifty, 34147, the top made last week, also coincided with 34-DMA and is the immediate hurdle to eye. Once that is taken out, 34346, the upper end of the gap created by gap-down opening on 13th June, would be the next upside level to eye; 33000 is the immediate support, below which, 32290, the bottom made on 17th June, would be the next downside level to eye.

 

16000 CONTINUES TO BE IMMEDIATE HURDLE; 15550 IMMEDIATE SUPPORT

 

16000 CONTINUES TO BE IMMEDIATE HURDLE; 15550 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

After falling 2-3% in the initial trade, US indices recouped more than half of the losses to end with cuts of 0.8%-1.3%

 

The core personal consumption expenditures index rose 4.7% y-o-y last month, slightly below estimate, however still near multi-decade highs. The Chicago PMI came in at 56, slightly below estimate of 58.3.

 

US 10-year treasury yield fell 7 bps to trade at 3.02%, Dollar index, after touching a high of 105.54, reversed to end at 104.74, down a third of a percent. Spot gold fell 0.6% to $1,807.11 per ounce.

 

Brent crude September futures fell $3.42, or 3%, to settle at $109.03 per barrel. WTI crude futures fell $4.02, or 3.7%, to $105.76 a barrel.

 

European markets slipped 1.7%-2.5%. French preliminary inflation data for June showed the country’s consumer price index rose by 5.8% y-o-y, up from 5.2% in May.

 

For the quarter, the S&P 500 fell more than 16%, its biggest one-quarter fall since March 2020. Fall for the first half stood at 20.6%, its largest first-half decline since 1970. Dow lost 11.3% in the second quarter, putting it down more than 15% for 2022. The Nasdaq, meanwhile, suffered its biggest quarterly drop since 2008, losing 22.4%.  It’s down 29.5% year to date.

 

AT HOME

 

Benchmark indices ended flat to marginally lower after a choppy expiry session, extending the losing streak to second straight day. Sensex settled at 53018, down 8 points while Nifty lost 18 points to finish at 15780. Nifty mid-cap and small-cap indices fell 0.8% and 0.5% respectively. BSE Metal index was the top loser among the sectoral indices, down 2.2%, followed by 1.2% each lower Auto, Basic Materials and Realty indices. Power index was the top gainer, up 0.8%, followed by 0.6% each higher Bankex and Utilities indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1138 cr, 1297 cr and 113 cr respectively. DIIs were net buyers to the tune of Rs 1378 cr.

 

Rupee ended unchanged at 78.97/$.

 

For the June month, Nifty fell 4.8%, extending the losing streak to third consecutive month and marking the biggest monthly cut since March 2020. Quarterly cut stood at 9.6%, biggest since March 2020.

 

India's eight core industries registered a strong growth of 18.1% in May 2022, highest in 13 months, compared to 8.4% in April this year.

 

OUTLOOK

 

Hang Seng is closed today for a holiday while Nikkei and Shanghai are down 0.8% and 0.3% respectively. SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 16030, around which 34-DMA was placed, continued to be immediate hurdle while 15550 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a high of 15890, slipped to end at 15780.

 

16030, around which 34-DMA is placed, continues to be immediate hurdle, above which, 16172, the upper end of the gap created by big gap-down opening on 13th June, would be the next target; 15550 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 34150, the top made Monday, coincided with 34-DMA and is the immediate hurdle, above which, 34346, the upper end of the gap created by gap-down opening on 13th June, would be the next upside level to eye; 33000 is the immediate support, below which, 32290, the bottom made on 17th June, would be the next downside level to eye.