NIFTY ACHIEVES 9470 TARGET AFTER BREAKING 9560 SUPPORT

NIFTY ACHIEVES 9470 TARGET AFTER BREAKING 9560 SUPPORT

WORLD MARKETS                             

Dow and S & P 500 fell 0.5% and 0.8% respectively while Nasdaq plunged 1.6% as technology stocks sold-off and Senate delayd a vote to repeal and replace obamacare.

Senate Majority Leader said that the health-care vote would be delayed until after July 4. President Trump has repeatedly said he wants to repeal and replace Obamacare before moving on to other items on his agenda, including tax reform.

Shares of Google-parent Alphabet declined more than 2% after the EU fined Google a record $2.7 billion, as regulators ruled the company violated antitrust rules.

Yellen said banks are "very much stronger," adding that another financial crisis is not likely in our lifetime. Philadelphia Fed President Patrick said he sees the Fed on track to raise rates once more this year.

In economic news, consumer confidence for June topped expectations, hitting 118.9.

ECB President Mario Draghi said that the central bank could potentially "adjust" its policy in response to "improving economic conditions."

The euro traded at a ten-month high against the dollar following the comments. Dollar index tumbled nearly a percent to 96.47, marking a nine and a half month low.

WTI crude rose 86 cents or 2% to $44.24. Brent added 33 cents to $46.16.

European markets fell 0.2%-1%

AT HOME

Benchmark indices plunged about six tenth of a percent to close at one-month low. Sensex lost 180 points to settle at 30958 while Nifty finished at 9511, down 64 points.  BSE mid-cap and small-cap indices tumbled 0.8% and 1.6% respectively. Except a 1.2% and 0.3% higher Telecom and Consumer Durable indices respectively, all the BSE sectoral indices ended in red with Bankex and Realty indices leading the losses, down 1.4% each.

FIIs net bought stocks and index futures worth Rs 292 cr and 621 cr respectively but net sold stock futures worth Rs 41 cr. DIIs were net sellers to the tune of Rs 149 cr.

Rupee depreciated 2 paise to end at 64.54/$.

OUTLOOK

Today morning, Asian markets are trading with modest cuts and SGX Nifty is suggesting about 20 points lower start for our market.

In yesterday's report we had mentioned that 9560, the immediate previous bottom on the daily chart, which also coincides with 34-DMA, is important support below which Nifty can slide to 9470-9420 region which is the next support area.

The benchmark broke 9560 support and plunged all the way to 9473 before closing at 9511, vindicating our view.

9470, where trendline adjoining bottoms made in May is placed, is the immediate support below which 9420 would be the next target to eye.

Immediate resistance on the hourly chart is placed around 9615, with the stop-loss of which, trading shorts can be held on to.