Nervous last lap

Markets showed some nervousness on the last trading days of the week They closed at 8323 We can expect a positive opening today because of strong closing of US markets after US job growth data The nonfarm payroll increased by 287000 jobs last month the largest gain since last October Nifty has resistance at 8401 and 8450 if these two levels have been take off then we can expect even 8500 level soon Nifty has support at 8280 and 8217 Price declines can be utilised to buy equities especially large cap stocks for a medium termA mob forms a heart with stars representing the EU on the Brexit vote in SW England Pic AFPBeginningThe Govt starts the process for sale of Specified Undertaking of Unit Trust of India SUUTI These shares are worth approximately Rs 60000 crore This amount will enable the Govt to achieve the disinvestment target SUUTI includes nearly 43 listed companies Direct and indirect tax collections in the first quarter of the current fiscal have swelled up to over 323 lakh croreThere are reports that when promoters have pledged share value increases in the recent past it is an early warning of companies in trouble The study shows that promoterrsquos pledge of company holding rose to 81 per cent in FY 15 from an average of 30 per cent in FY11Cement Metal Banks Auto Mobile and Pharma stocks are likely to move up in the short term IT sector stocks may remain subdued may be able to bounce back on Tuesday due to the over sold situationChallengesRating agency Moodyrsquos said that our economic growth will be challenged over two years by slow growth of world economies and highly leveraged portfolios of large corporates On the other hand they are very confident that the UKrsquos decision to vote to leave EU will not have a huge impact on the Indian economy because our exports to UK accounts for mere 04 per cent of Indiarsquos GDP Exports from our country to EU are at around 17 per cent of Indiarsquos GDPThe latest Chinese Service PMI rose to an 11month high of 5270 from 512 in May The June Federal Reserve policy meet confirmed that they may keep interest rates unchanged for some more time helping to gain investors confidence in equity marketsGoldJapanese investors are accumulating gold because of negative interest rates in Japan and fear that the Yen will depreciate Even Chinese investors are betting heavily on gold because of global currency volatility UK and Euro Zone investors are also investing heavily in the yellow metal on fear of uncertainties over BREXIT On Friday gold moved up sharply from the lower level after better than estimated US job data Gold has resistances at 1365 and 1380 per troy ounce Gold has support at 1350 and 1335 per troy ounceCrudeCrude came off from highs on a report of oil services firm Baker Hughes that US oil rigs rose by 10 to 351 for the week ending on July 1 This provides some signals that dormant shale producers in the US may be ramping up output Crude has immediate support at 44 per barrel and 4349 per barrel It has resistance at 4986 and 5050 per barrel The commodity has already entered in the oversold region and is likely to bounce back from lower levelsDataThe monsoon session of Parliament will commence next week If there is positive consensus to implement the GST then it will act as a catalyst World economic data like Japanese inflation rate balance of trade GDP growth rate initial jobless claim and other aspects is expected this week