NIFTY RECOVERS AFTER HOLDING ON TO 8315 SUPPORT

NIFTY RECOVERS AFTER HOLDING ON TO 8315 SUPPORT

WORLD MARKETS                             

US indices gained 0.5%-0.8% yesterday amidst modest recovery in commodities and digesting Fed statement.

The Federal Reserve kept rates unchanged and gave no hint of liftoff coming in the next meeting. The decision on the rates was unanimous. Policymakers said the economy is expanding moderately and made no mention of recent volatility around Greece or China.

Nymex oil rose 81 cents to $48.79 a barrel after the weekly crude inventories showed a greater-than-expected decline. Gold settled down $3.60 at $1,092.60 an ounce.

US pending home sales came in down 1.8% in June from May. Weekly mortgage applications barely moved for the second week in a row, rising just 0.8%.

European markets, except a 0.3% cut in Italy, gained 0.3%-1.2%, with FTSE leading the tally.

Earlier Chinese stocks halted a three-day decline with a 3.5% gain.

AT HOME

Nifty rose half a percent and Sensex gained 0.4% on the penultimate day of the expiry of the July derivative series, breaking four-day losing streak. Sensex settled at 27563, up 104 points while Nifty added 38 points to finish at 8375. BSE mid-cap and small-cap indices gained 0.9% and 0.8% respectively. BSE Capital Goods and IT indices climbed 1.4% and 1.5% respectively, becoming top gainers among the sectoral indices while Consumer Durable and FMCG indices lost 1.9% and 0.8% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 186 cr, 1391 cr and 191 cr respectively. DIIs were net buyers to the tune of Rs 643 cr.

Rupee ended unchanged at 63.91/$.

Yes Bank reported better-than-expected 27.7% rise in quarterly net profit at Rs 551.2 cr. NII surged 42.3% to Rs 1060 cr. Gross NPA ratio rose to 0.46% from 0.41% q-o-q and Net NPA ratio stood at 0.13% Vs 0.12%.

Union Cabinet yesterday approved amendments to the GST Constitutional Amendment Bill and setting up of the Rs 20000 cr National Investment & Infrastructure Fund that will provide equity support to infrastructure financing companies by putting in a small portion while the rest could levered up from other sources.

OUTLOOK

Today morning Asian markets are trading mixed and SGX Nifty is suggesting about 15 points higher opening for our market.

For last two sessions we had been mentioning that Nifty has an important support in 8315-8300 area where 8315 is the immediate previous bottom on the daily chart and 8300 is where the lower band of bollinger on the daily chart is placed. Therefore we had advised booking profits in short positions in the vicinity of 8315.

The benchmark, after touching a low of 8322 on Tuesday, recovered to close at 8375 yesterday and is expected to open higher today, giving credence to above mentioned view.

8315-8300 continues to be the support area, a breach of which should be awaited for taking fresh negative view on Nifty. On the way up 8450, the 38.2% retracement level of the recent 8655-8322 fall, is the immediate hurdle, a crossover of which can take Nifty to around 8530, which is the 61.8% retracement level of this downmove.

Traders should concentrate on individual stocks and let the Nifty decide its next course of action.

Kotak Mahindra Bank, BoB, ITC and Dr Reddy will report their quarterly earnings today.