8336 CONTINUES TO BE IMMEDIATE TARGET; 8190 IMMEDIATE SUPPORT

8336 CONTINUES TO BE IMMEDIATE TARGET; 8190 IMMEDIATE SUPPORT

WORLD MARKETS

US indices, supported by weaker dollar and gains in oil prices, rose 0.3%-0.4% yesterday with the Dow closing above 18000 for the first time since April 27 and within 1% of its 52-week intraday high hit last June.

US oil futures, buoyed by strong Chinese oil demand data and supply disruptions in Nigeria, rose 87 cents or 1.73% to $51.23 a barrel, its highest settle since July 15. EIA data showed a higher-than-expected fall of 3.2 million barrels in crude inventories. US crude production edged higher, reversing a recent trend of declining output.

Dollar index fell about 0.2% too its lowest since May 6. Gold rose $15 to $1262 an ounce.

Earlier, data showed that China's exports in May fell by a more-than-expected 4.1%t from a year earlier, while imports slipped by 0.4%, much less than expected. Crude oil imports jumped the most in over six years, with iron ore imports the highest since December. Copper purchases were up more than 19%.

The World Bank downgraded its 2016 global growth forecast to 2.4% from the 2.9% forecast in January.

In Europe, FTSE gained 0.3% while DAX and CAC lost about two third of a percent.

AT HOME

It was a day of consolidation as benchmark indices, after trading in a narrow range through the day, ended flat. Sensex settled at 27021, up 11 points while Nifty added 7 points to finish at 8273. BSE mid-cap and small-cap indices however outperformed, rising 0.5% and 0.9% respectively. BSE Power and Capital Goods indices climbed 1.8% each, becoming top gainers among the sectoral indices while IT and Teck indices lost 0.6% and 0.5% respectively.

FIIs net bought stocks and stock futures worth Rs 529 cr and 62 cr respectively but net sold index futures worth Rs 204 cr. DIIs were net sellers to the tune of Rs 258 cr.

Rupee appreciated 12 paise to end at 66.65/$.

Yesterday, more than seven-and-a-half years after the Indo-US nuclear agreement was signed in 2008, Toshiba-owned American firm Westinghouse and Nuclear Power Corporation of India Ltd (NPCIL) agreed to construct six nuclear reactors in India.

Southwest monsoon hit Kerala's coasts today. IMD said that the monsoon is likely to hit coasts of Maharashtra in another 3-4 days and will cover entire country by June end.

OUTLOOK

China's May CPI has come in at 2% Y-o-Y, lower than the expected as well as previous month’s 2.3% rise. PPI is down 2.8%, better than the expected -3.3% read.

Markets in China, Hong Kong and Taiwan are shut today for the Dragon Boat Festival. Nikkei is down about 0.8% and SGX Nifty is suggesting about 20 points higher start for our market.

In yesterday's report we had mentioned that having taken out the 8243 hurdle, next immediate target for Nifty is 8336, the top made in October 2015.

The benchmark traded in a narrow range and closed at 8273 after touching a high of 8289 in the initial trade.

8336 continues to be immediate target above which 8655, the top made in July 2015 would be the major target to eye.

Immediate support on the hourly chart is placed at 8190, which should serve as the stop loss for trading longs.