NIFTY RETREATS AFTER NEARLY ACHIEVING 9710 TARGET; 9600 IMMEDIATE SUPPORT

NIFTY RETREATS AFTER NEARLY ACHIEVING 9710 TARGET; 9600 IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices fell 0.7%-1% as technology and energy stocks tumbled and bonds fell.

The sell-off in bonds followed the weak French 30-year bond auction and was reinforced by minutes from the European Central Bank indicating that officials had discussed removing its easing bias. The benchmark 10-year U.S. Treasury yield rose near two-month highs at 2.37%. Yields of the German 10-year bund crossed the 0.5% level for the first time since January last year.

U.S. private payrolls data from ADP showed 158,000 jobs were created in June compared to the 185,000 expected. The ISM non-manufacturing index, however, showed that non-manufacturing activity grew to 57.4, the strongest level since January, in June compared to the 56.5 forecast. Weekly jobless claims came in at 248,000, slightly higher than the expected 243,000.

WTI crude rose 0.9% to $45.52 a barrel after U.S. commercial crude inventories fell by a more-than-expected 6.3 million barrels in the week through June 30.

The euro strengthened on the back of the release of the ECB's minutes.

European markets, except a 0.7% higher Italy, fell 0.2%-0.6%. 

AT HOME

Benchmark indices gained four tenth of a percent, with Sensex registering fresh record closing high while Nifty closed at the highest level since 5th June. Sensex added 124 points to settle at 31369 while Nifty finished at 9675, up 37 points. BSE mid-cap and small-cap indices gained 0.3% each. BSE Realty and Telecom indices climbed 1.6% and 1.3% respectively, becoming top gainers among the sectoral indices while Oil & Gas and Consumer Durable indices were the top losers, down 0.4% and 0.3% respectively.

FIIs net sold stocks and index futures worth Rs 15 cr and 544 cr respectively but net bought stock futures worth Rs 896 cr. DIIs were net buyers to the tune of Rs 316 cr.

Rupee ended flat at 64.78/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.4% and SGX Nifty is suggesting about 30 points lower start for our market.

After Nifty crossed the immediate hurdle of 9576, we had said that 9710, the top made in June, is the next upside target as well as hurdle to eye.

Yesterday, the benchmark touched a high of 9701 before closing at 9675, nearly achieving this target and vindicating our view.

A decisive crossover of 9710 is required for a fresh upmove. 9970 would be the next major target if that happens.

Immediate support on the hourly chart has moved up to 9600, with the stop-loss of which trading longs should be held on to.

Key data to watch out today would be the US non-farm payroll for June which is expected to show an addition of 1.79 lac jobs as against 1.38 lac in May. Unemployment rate is expected to be unchanged at 4.3%.