8475-8595 CONTINUES TO BE IMMEDIATE RANGE

8475-8595 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS                             

While Dow and S & P 500 gained 0.2% and 0.4% respectively, Nasdaq soared 1.1% yesterday on the back of better-than-expected earnings.

Microsoft soared more than 5% following a beat on earnings and revenue as its cloud product Azure saw revenue growth of 102%. Morgan Stanley joined positive bank results streak by reporting earnings of 75 cents per share versus consensus expectations of 59 cents.

U.S. housing starts rose more than expected in June. Fed funds futures rates showed an uptick in rate hike expectations.

The U.S. dollar hit a four-month high at 97.14. Gold fell 1.4% to $133 per ounce.

US oil rose 29 cents to $44.94 after weekly EIA data showed U.S. crude oil inventories fell by 2.3 million barrels for the ninth consecutive decline in stockpiles. Brent rose more than a percent to $47.

European markets gained 0.5%-1.6% with DAX leading the tally. Sterling moved higher after UK's unemployment rate fell to 4.9% in three months to May, hitting its lowest since 2005 and a report on economic impact from last month's Brexit vote, by the Bank of England, showed no clear evidence of slowing economic activity, with signs that demand for credit was easing and companies did not expect any near-term impact on capital spending.

AT HOME

After a positive start, benchmark indices added some more gains through the session to end with gains of nearly half a percent, with Nifty closing at fresh 11-month high. Sensex added 128 points to settle at 27916 while Nifty finished at 8566, up 37 points. BSE mid-cap and small-cap indices gained 0.9% and 1% respectively. Except a 0.2% and 0.1% cut in BSE Consumer Durable and Telecom indices respectively, all the sectoral indices ended in green with Healthcare and Realty indices leading the tally, up 2.4% each.

FIIs net bought stocks and index futures worth Rs 215 cr and 46 cr respectively but net sold stock futures worth Rs 875 cr. DIIs were net sellers to the tune of Rs 45 cr.

Rupee depreciated 10 paise to end at 67.20/$.

OUTLOOK

Today morning, Nikkei is up more than a percent on weaker Yen and stimulus hopes. Other Asian markets are trading with modest gains and SGX Nifty is suggesting a flattish start for our market.

After Nifty bounced back from our indicated 8475 support on Tuesday, in yesterday's report we had said that traders should wait for the breach of 8475-8595 range where 8595 is the top made last week. Yesterday, the benchmark builded on Tuesday's recovery by gaining 37 points to end at 8566.

8595-8475 continues to be immediate range, a breach of which, on either side, is required for the fresh upmove. While 8655, the top made last July, would be the immediate target above 8595, looking at the weekly charts, a decisive crossover of 8595 would open up the space for the further upside till about 8845, the top made in April 2015. Below 8475, 8400 would be the next downside target to eye.

ITC, HDFC Bank and Kotak Mahindra Bank will report their quarterly earnings today.

ECB will hold its first monetary policy meeting since the U.K. voted on June 23 to leave the European Union.