NIFTY REBOUNDS FROM 15606 SUPPORT

 

NIFTY REBOUNDS FROM 15606 SUPPORT

 

WORLD MARKETS

 

Dow fell 0.6%, S & P 500 ended little changed while Nasdaq rose 0.9%

 

Initial jobless claims rose unexpectedly last week, totaling 412,000, an increase of 37,000 from the previous week and higher than the 360,000 estimate.

 

Dollar index rose 0.53% to 91.892, its highest since mid April. US 10-year treasury yield fell 5.3 bps to 1.516% while that on the 30-year Treasury dropped 9.6 bps to 2.113%.

 

Commodities prices declined sharply as China attempts to cool rising prices and the U.S. dollar strengthens. Brent crude oil futures dipped 2.4% to $72.56 per barrel, while WTI dipped 2.2% to $70.54. Spot gold fell 2% to $1,776.10 per ounce.

 

In Europe FTSE fell 0.4% while DAX and CAC gained 0.1% and 0.2% respectively. Euro zone inflation rose 0.3% month-on-month in May for a 2% annual increase on the back of higher energy and services prices, slightly exceeding the European Central Bank’s target.

 

AT HOME

 

Sensex and Nifty slipped 0.3% and 0.5% respectively, extending the losing streak to second consecutive day. Sensex settled at 52323, down 178 points while Nifty lost 76 points to finish at 15691. Nifty mid-cap and small-cap indices tumbled 1.2% and 0.5% respectively. BSE Power and Metal indices plunged 2.4% and 2.2% respectively, becoming top losers among the sectoral indices while IT and Teck indices were the top gainers, up 0.9% and 0.6% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 880 cr, 378 cr and 460 cr respectively. DIIs were net buyers to the tune of Rs 45 cr.

 

Rupee depreciated 76 paise to end at 74.08/$.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 0.8% and 0.3% respectively while Shanghai is flat. SGX Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that 15606, the bottom made on Monday, was the immediate support to eye, while 15900, the top made on Wednesday, continued to be immediate hurdle.

 

Nifty, after touching a low of 15616, closed at 15691 and is set to open near 15750 today.

 

15606, the low made Monday, continues to be immediate support, upon breach of which, 15460, the bottom made on 2nd June, would be the next downside level to eye.

 

15900, the top made last week, continues to be the hurdle to eye.

 

15606 IS THE IMMMEDIATE SUPPORT

 

15606 IS THE IMMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.2%-0.8% after the Federal Reserve raised inflation expectations and also brought forward its projections for the first post-pandemic interest rate hikes into 2023.

 

The Fed changed its headline inflation estimate to 3.4% for the year, a full percentage point above its March projection, and the so-called dot plot showed that central bankers expect rate hikes in 2023, a year ahead of prior estimates. However, the central bank reiterated in its policy statement that it expects the price increases to be “transitory” and also did not announce a plan to slow bond purchases.

 

US 10-year Treasury yield rose more than 7 basis points to 1.575%. Dollar index rose 0.41% at 90.901, its highest since May 7. Spot gold fell 1.1% to $1,839.06 per ounce.

 

May Building permits fell 3.0% to 1.681 million units and housing starts rose 3.6% to 1.572 million units. Import prices rose 1.1% in May after gaining 0.8% in April, while export prices rose 2.2% in May after rising 1.1% in April.

 

Brent crude gained 40 cents, or 0.5%, to hit $74.39 a barrel, reaching its highest since April 2019. US crude rose 3 cents to $72.15, after reaching $72.99, highest since October 2018.

 

In Europe, FTSE and CAC added 0.2% each while DAX was off 0.1%. UK CPI rose 2.1% year-on-year and 0.6% month-on-month, compared to expectations of 1.8% and 0.3% respectively.

 

Chinese retail sales rose 12.4% in May from the same period last year, missing expectations of 13.6%.

 

AT HOME

 

Sensex and Nifty slipped 0.5% and 0.6% respectively, snapping 4-day winning streak. Sensex lost 271 points to settle at 52501 while Nifty finished at 15767, down 101 points. Nifty mid-cap and small-cap indices fell 0.9% and 0.5% respectively. BSE Metal and Industrials indices tumbled 2.6% and 1.6% respectively, becoming top losers among the sectoral indices while FMCG and IT indices were the top gainers, up 0.4% and 0.3% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 870 cr, 586 cr and 376 cr respectively. DIIs were net sellers to the tune of Rs 874 cr.

 

Rupee depreciated 10 paise to end at 73.32/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 1.3% and 0.1% respectively while Shanghai is marginally higher. SGX Nifty is suggesting around 100 points lower start for our market.

 

In yesterday's report we had said that 15900 continued to be upside resistance, while 15567 continued to be immediate support.

 

Nifty slipped to touch a low of 15742 before closing at 15767. The benchmark is set to open near 15650 today.

 

15606, the bottom made on Monday, is the immediate support to eye, upon sustained trading below which, 15460, the bottom made on 2nd June, would be the next downside level to eye.

 

15900, the top made on Wednesday, continues to be immediate hurdle.

 

ALL EYES ON THE FED

 

ALL EYES ON THE FED

 

WORLD MARKETS

 

US indices fell 0.2%-0.7%, with Nadaq falling the most, ahead of the outcome of the Federal Reserve's policy meeting due Wednesday.

 

While the central bank is not expected to make any policy moves, markets will watch for comments on inflation and the Fed’s eventual tapering plans.

 

US 10-year Treasury yield was little changed at 1.496%. Dollar index too was flattish at 90.515. Spot gold fell 0.5% to $1,855.99 per ounce.

 

U.S. Producer Price Index rose 0.8% month-on-month in May, higher than the estimate of 0.5%. On an annual basis, growth was 6.6%, the largest 12-month increase on record since the data started in 2010. Retail sales fell 1.3% in May, greater than the expectation of a 0.6% dip.

 

Brent crude settled 1.65% higher at $72.12 per barrel while US oil advanced 1.75% to settle at $72.12 per barrel.

 

FTSE, DAX and CAC gained 0.4% each. German final harmonized inflation was 2.4% annually in May, while French final inflation came in at 1.8%.

 

AT HOME

 

Benchmark indices added four tenth of a percent each, extending the winning streak to fourth straight day and hitting fresh record highs. Sensex settled at 52773, up 221 points while Nifty added 57 points to finish at 15869. Nifty mid-cap and small-cap indices gained 0.6% and 0.4% respectively. BSE Realty and Consumer Discretionary Goods & Services indices rose 1.6% and 1% respectively, becoming top gainers among the sectoral indices while Healthcare and Power indices were the top losers, down 0.7% and 0.5% respectively.

 

FIIs net bought stocks and stock futures worth Rs 634 cr and 753 cr respectively but net sold index futures worth Rs 11 cr. DIIs were net sellers to the tune of Rs 649 cr.

 

Rupee depreciated 4 paise to end at 73.31/$.

 

India's trade deficit widened to $6.28 billion in May from $3.15 billion y-o-y. Exports rose 69.35% to $32.27 billion while imports were up 73.64% to $38.55 billion.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-0.3% while SGX Nifty is suggesting around 40 points lower start for our market.

 

In yesterday's report we had said that 15900, where a rising trendline adjoining recent tops on the hourly chart was placed, was the upside target/resistance to eye.

 

Nifty, after touching a high of 15901, slipped to end at  15869.

 

Upon sustained trading above 15900, 16050 would be the next upside target to eye.

 

15567, the bottom made last week, continues to be important immediate support.

15567 CONTINUES TO BE IMMEDIATE SUPPORT

 

15567 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow fell 0.2% while S & P 500 and Nasdaq rose 0.2% and 0.7% respectively on the back of rise in growth stocks as bond yields keep falling.

 

The Federal Reserve’s two-day policy meeting starts today and markets would listen closely for comments on inflation and the Fed’s eventual tapering plans.

 

The yield on the benchmark 10-year Treasury note rose 3 basis points to 1.5%. Dollar index was flat at 90.517. Spot gold fell 0.7% to $1,863.98 per ounce.

 

Brent settled up 17 cents at $72.86 a barrel while WTI fell 3 cents to $70.88.

 

In Europe, FTSE and CAC rose 0.2% each while DAX eased 0.1%. Eurozone industrial production rose 0.8% month-on-month in April to double economist projections. Britain delayed plans to lift most remaining COVID-19 restrictions by a month, because of the rapid spread of the more infectious Delta variant.

 

AT HOME

 

After falling more than a percent in the initial trade, benchmark indices saw a sustained northward move through rest of the session to end marginally in the green. Sensex settled at 52551, up 76 points while Nifty added 12 points to finish at 15811. Nifty mid-cap and small-cap indices however ended with cuts of 0.5% and 0.3% respectively. BSE Power and Realty indices tumbled 2% and 1.6% respectively, becoming top losers among the sectoral indices while Energy and IT indices were the top gainers, up 0.8% and 0.5% respectively.

 

FIIs net sold stocks and index futures worth Rs 504 cr and 2638 cr respectively but net bought stock futures worth Rs 778 cr. DIIs were net buyers to the tune of Rs 544 cr.

 

Rupee depreciated 20 paise to end at 73.27/$.

 

Wholesale price inflation in May jumped to 12.94%, the highest in the current series with 2011-12 base year. Retail inflation, too, spiked to a six-month high of 6.30%.

 

OUTLOOK

 

Today morning, Nikkei is up 0.8% while Hang Seng and Shanghai are down 0.7% each. SGX Nifty is suggesting around 20 points lower start for our market.

 

In yesterday's report we had reiterated the view that 15567, the low made last Week, continued to be immediate support while 15875, where a rising trendline adjoining recent tops on the hourly chart was placed, was the upside target/resistance to eye.

 

Nifty, after touching a low of 15606 in the initial trade, rebounded to end at 15811.

 

15900, where a rising trendline adjoining recent tops on the hourly chart is placed, is the upside target/resistance to eye.

 

15567, the low made last week, continues to be immediate support.

 

15567 CONTINUES TO BE IMMEDIATE SUPPORT

 

15567 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow ended little changed while S & P 500 and Nasdaq gained 0.2% and 0.4% respectively on Friday

 

The University of Michigan's consumer sentiment index for June increased to 86.4 from 82.9 in May. One-year inflation expectations fell to 4.0% from 4.6% in May, and five-to-10-year inflation expectations dropped to 2.8% from 3.0%.

 

The yield on the benchmark 10-year Treasury note was unchanged at 1.455%. The dollar index gained 0.6% to 90.58. The euro and sterling dipped against the dollar on bets that interest rates would stay lower for longer in Europe and Britain. Spot gold fell 1.2% to $1,875.31 per ounce.

 

Brent crude futures settled 17 cents higher at $72.69 while WTI rose 62 cents to $70.91 a barrel.

 

European markets gained 0.3%-0.8%. U.K. GDP climbed 2.3% month-on-month in April, according to an initial estimate, slightly exceeding expectations. Industrial, manufacturing and construction outputs for April came in considerably lower than expected, however.

 

For the week, Dow fell 0.8%, but the S&P 500 rose 0.4%, for its third straight positive week. Nasdaq climbed 1.9%, posting its fourth winning week in a row. WTI and Brent gained 1.9% and 1% respectively, extending the winning streak to third straight week.

 

AT HOME

 

Sensex and Nifty gained 0.3% and 0.4% respectively, extending the winning streak to second straight day and hitting fresh record highs. Sensex added 174 points to settle at 52474 while Nifty finished at 15799, up 61 points. Nifty mid-cap and small-cap indices gained 0.2% and 0.5% respectively and they too hit record highs. BSE Metal index soared 3.2%, becoming top gainer among the sectoral indices, followed by 1.5% higher IT index. Realty and Capital Goods indices were the top losers, down 1.1% and 0.7% respectively.

 

FIIs net bought stocks and stock futures worth Rs 19 cr and 184 cr respectively but net sold stock futures worth Rs 122 cr. DIIs were net buyers to the tune of Rs 666 cr.

 

Rupee depreciated 1 paise to end at 73.06/$.

 

For the week, Sensex and Nifty gained 0.7% and 0.8% respectively, extending the winning streak to fourth consecutive week. Nifty mid-cap and small-cap indices rose for the fourth and seventh consecutive week respectively.

 

OUTLOOK

 

Markets in China and Hong Kong are closed while Nikkei is up 0.4%. SGX Nifty is suggesting around 70 points lower start for our market/

 

In Friday's report we had reiterated the view that 15800 continued to be immediate hurdle, upon crossover of which, 16000-16050 would be the next target zone and had advised holding on to long positions with the stop-loss of 15566.

 

Nifty touched a high of 15835 before closing at 15799.

 

15567, the low made last Wednesday, continues to be immediate support. 15875, where a rising trendline adjoining recent tops on the hourly chart is placed, is the upside target/resistance to eye.

 

India's May CPI as well as WPI data will be released today.

 

15800-15566 IS THE IMMEDIATE RANGE

 

15800-15566 IS THE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow inched up 0.1% while S & P 500 and Nasdaq climbed 0.5% and 0.8% respectively, with the S & P 500 hitting a new high, despite hotter-than-expected inflation data.

 

May CPI jumped 5% y-o-y, its fastest pace since 2008 and higher than the forecast of 4.7%. A separate gauge that excludes volatile food and energy prices increased 3.8%, vs the estimate of 3.5%. Initial jobless claims for the week ended June 5 came in at 376,000 — the lowest in nearly 15 months.

 

The yield on the benchmark 10-year Treasury note fell 4 bps to 1.44%. Dollar index eased 0.08% to 90.0670. Spot gold rose 0.3% to $1,893.75 per ounce.

 

Brent futures rose 30 cents, or 0.4%, to $72.52 a barrel, while WTI crude rose 33 cents, or 0.5%, to end at $70.29. Those were the highest closes for Brent since May 2019 and WTI since October 2018.

 

In Europe, FTSE inched up 0.1% while DAX and CAC eased 0.1% and 0.3% respectively. The European Central Bank opted to keep interest rates and asset purchases unchanged, despite the recent overshoot of its inflation target. The central bank raised its growth and inflation views but promised to keep ample stimulus flowing.

 

AT HOME

 

Benchmark indices gained seven tenth of a percent each, snapping two-day losing streak. Sensex added 358 points to settle at 52300 while Nifty finished at 15737, up 102 points. Nifty mid-cap and small-cap indices surged 1.6% each. Except 0.1% lower Auto index, all the BSE sectoral indices ended in green, with Realty index on the top, up 3.3%, followed by 1.2% higher Telecom index.

 

FIIs net bought stocks and stock futures worth Rs 1330 cr and 1462 cr respectively but net sold index futures worth Rs 944 cr. DIIs were net sellers to the tune of Rs 575 cr.

 

Rupee depreciated 7 paise to end at 73.05/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.2% each while Shanghai is down half a percent. SGX Nifty is suggesting around 25 points higher start for our market.

 

In yesterday's report we had said that a breach of Wednesday's low, 15567, would confirm a "Sell" on the hourly chart. 15460 would be next downside level to eye if that happens. We had also said that 15800, the top made Wednesday, was the immediate hurdle.

 

Nifty rose to touch a high of 15751 before closing at 15737.

 

15800, the top made Wednesday, continues to be immediate hurdle, upon crossover of which, 16000-16050 would be the next target zone.

 

15566, the bottom made Wednesday, continues to be immediate support.

 

15460 BELOW 15567; 15800 IS IMMEDIATE HURDLE

 

15460 BELOW 15567; 15800 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.1%-0.4% ahead of important May inflation data due Thursday, that could shape the course of the Federal Reserve’s monetary policy.

 

The U.S. consumer price index for May is expected to show headline inflation at 4.7% — the fastest pace since 2008.

 

Markets are also watching negotiations over potential infrastructure spending. On Tuesday, negotiations for a comprehensive infrastructure bill fell apart after President Biden and a small group of GOP senators failed to reach a compromise. Biden then spoke with a bipartisan group of senators working on a backup infrastructure plan.

 

US 10-year treasury yield fell 3.7 basis points to 1.491%. The dollar index fell 0.1% to 90.080. Spot gold was down 0.1% at $1,891.05 per ounce.

 

Brent crude futures remained unchanged to settle at $72.22 a barrel while WTI crude closed 9 cents, or 0.1%, lower at $69.96 a barrel.

 

In Europe, FTSE and DAX fell 0.2% and 0.4% respectively while CAC rose 0.2%.

 

AT HOME

 

After rising four tenth of a percent in the morning, benchmark indices tumbled nearly a percent from top of the day to end lower by about two third of a percent, extending the losing streak to second straight day. Sensex settled at 51941, down 333 points while Nifty lost 104 points to finish at 15635. Nifty mid-cap and small-cap indices slipped 0.7% and 1.4% respectively.

 

BSE Energy and Oil & Gas indices tumbled 1.7% each, becoming top losers among the sectoral indices while Utilities and Power indices were the top gainers, up 0.9% and 0.4% respectively.

 

FIIs net sold stocks and stock futures worth Rs 846 cr and 70 cr respectively but net bought index futures worth Rs 537 cr. DIIs were net sellers to the tune of Rs 272 cr.

 

Rupee depreciated 8 paise to end at 72.98/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-0.6% and SGX Nifty is suggesting around 50 points higher star for our market.

 

In yesterday's report we had reiterated the view that 15850 continued to be next upside target and extended advise of holding long positions with the stop-loss of 15600.

 

Nifty, after touching a high of 15800, plunged to 15567 before closing above 15600 at 15635 and is set to open near 15700 today.

 

A breach of yesterday's low, 15567, would confirm a "Sell" on the hourly chart. 15460 would be next downside level to eye if that happens.

 

15800, the top made yesterday, is the immediate hurdle.