NIFTY EXTENDS VOLATILE CONSOLIDATION; STAY LIGHT

NIFTY EXTENDS VOLATILE CONSOLIDATION; STAY LIGHT

WORLD MARKETS                             

US indices fell 0.2%-0.4% yesterday as falling oil prices weighed on energy stocks.

US oil fell 2.5% to $41.71 a barrel while Brent slipped 2% to $44.05 after data from the U.S. Energy Information Administration (EIA) showed U.S. crude inventories rose by 1.1 million barrels in the week ended August 5, in a third consecutive weekly build, as against the expectation of a 1  million barrel drawdown.

Dollar index fell more than half a percent to 95.57 from 96.12. Gold rose $5 to $1352 an ounce.

European markets, except a 0.2% higher FTSE, fell upto 0.4% with DAX and CAC leading the losses

AT HOME

Benchmark indices plunged more than a percent yesterday, marking the worst fall since 24th June and extending the losing streak to second straight day. Sensex settled at 27775, down 310 points while Nifty lost 103 points to finish at 8575. BSE mid-cap and small-cap indices lost 1.1% and 1.2% respectively. All the BSE sectoral indices ended in red with Oil & Gas and Energy indices leading the tally, down 2.2% and 2% respectively.

FIIs net bought stocks and index futures worth Rs 413 cr and 93 cr respectively but net sold stock futures worth Rs 576 cr. DIIs were net sellers to the tune of Rs 747 cr.

Rupee appreciated 12 paise to end at 66.72/$.

M & M's standalone net profit rose 12.4% to Rs 955 cr on the back of higher exceptional gain and other income while operational performance disappointed. Revenue increased 14% to Rs 11943 cr. Operating profit increased 3.3% to Rs 1286 cr and margin contracted by 112 bps to 10.76%.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had mentioned that Nifty is finding it difficult to cross the 8711 decisively and had reiterated the view that 8610 is the immediate support, which should serve as the stop-loss for trading longs.

The benchmark broke 8610 support and fell to 8565 before closing at 8575.

34-DMA, placed around 8490, is the next important support to eye.

Considering the fact that the benchmark has turned volatile at higher level, traders would do well to keep volumes low and let the benchmark settle down before taking a fresh view.

Grasim and BoB will report its quarterly earnings today.