US stocks closed higher Friday after paring gains in the final stretch of trading, with all three major indexes rising for the week. The big three indexes soared higher on Friday, as an “everything rally” continued to take hold in the wake of encouraging inflation data. Stocks lost some momentum in the final half-hour of trading, but still closed solidly higher. For the week, the Dow climbed 1.6% and the S&P 500 gained 0.9%, each. The technology-heavy Nasdaq booked a 0.2% weekly rise, increasing a sixth straight week for its longest winning streak since December, according to Dow Jones Market Data.
The US PPI Index for June showed core prices were unchanged last month, compared with a 0.2% increase expected by economists polled by FactSet. Headline prices rose 0.2%, surpassing expectations for a 0.1% increase.
Consumers’ optimism about the economy fell to an eight-month low in July over frustration with high prices, even though they expect inflation to slow over the next year. The first reading of the consumer sentiment index in July dropped to 66.0 in July from 68.2 in June, the University of Michigan said Friday. It was the fourth decline in a row and the weakest reading since November.
India’s retail inflation rose to four-month high of 5.08 percent in June compared with 4.75 percent in the previous month as food inflation galloped to 9.4 percent given the impact of heatwave on vegetables.
Inflation had dipped to a 12-month low of 4.75 percent in the previous month, despite food inflation hovering around 8.7 percent.
The industrial output growth in India surprised in May rising to a seven month high of 5.9 percent from 5 percent in the previous month, as manufacturing and electricity production soared, according to the official data released on July 12. A CNBC-TV18 poll had pencilled in an IIP growth of 4.6 percent, lower than what was reported a month ago. Electricity growth soared to 13.7 percent in May compared with 10.2 percent in April, while manufacturing, which accounts for nearly two-thirds of the index, was up 4.6 percent in May from 3.9 percent earlier.
China’s imports fell in June, missing expectations for slight growth, while exports rose more than expected, customs data released Friday showed. China’s imports fell by 2.3% in June from a year ago in US dollar terms. That contrasts with a forecast of 2.8% growth, according to a Reuters poll. US dollar-denominated exports for June climbed by 8.6% year on year, beating expectations for 8% growth forecast by a Reuters poll.
Analysts expect the upcoming Third Plenum in China to focus on areas — such as high local government debt levels and a push for advanced manufacturing. The much-anticipated policy meeting, scheduled for Monday to Thursday, is a major gathering of the top members of the ruling Communist Party of China that typically happens only once every five years. This plenum was widely expected to be held last fall but has been delayed.
Chinese bank lending jumped less than expected in June while some key money gauges hit fresh record lows, highlighting weak demand in the world’s second-largest economy as the country’s top leaders prepare to meet to lay out longer-term policy goals.
US stock-index futures saw a modest rise Sunday night, as financial markets opened for the week following an apparent assassination attempt on former President Donald Trump a day earlier at a campaign rally. Traders took stock of the likelihood of Donald Trump winning the US presidential election after an assassination attempt.
China’s central bank left…
(9:18 am, 15/7/2024) +91 87791 76561: Today’s Market Morning Inputs by Shrikant Chouhan, Head Equity Research, Kotak Securities:
In the past week, the benchmark indices showed positive momentum, with the Nifty ending 0.73 percent higher and the Sensex gaining 522 points. The FMCG and IT sectors recorded strong momentum, both rallying over 3 percent. However, the Metal and Reality sectors experienced selling pressure despite the overall market momentum.
Technically, after a period of range-bound activity last Friday, the Nifty surpassed the 24400/80100 resistance zone and demonstrated increased positive momentum post-breakout. We believe that 24400/80100 and 24350/79800 would be crucial support levels for trend-following traders. On the higher side, 24550-24600/80100-80200 would serve as the resistance zone. A close above 24650 could drive the market towards 24900-25000/81000/81300. Conversely, dropping below 24350/79800 could alter the sentiment, leading to a retest of the level of 24150-24100/79500-79100, a major support zone of the last two weeks and 20 days SMA.
The strategy should be reducing weak long positions between 24550/24600 levels. Buying is advisable around 24250/24200, with a stop loss at 24100 on a closing basis. Our advice is to wait for a deeper correction before buying. Until then, focus on specific stocks.
For the Bank Nifty, a 20-day SMA (Simple Moving Average) or 52100 would be the pivotal level for determining the trend. Staying above these levels could prompt an upward movement towards 52800-53500. Conversely, dropping below 52100 could make the uptrend vulnerable, potentially leading to a fall to 51500 levels.