10070 ABOVE 9928; STAY LONG WITH THE STOP-LOSS OF 9792

10070 ABOVE 9928; STAY LONG WITH THE STOP-LOSS OF 9792

WORLD MARKETS                             

US indices ended marginally lower on Friday with Nasdaq snapping it's 10-day winning streak.

GE fell more than 2% after sales for June quarter fell 12% y-o-y.

WTI crude plunged 2.5% to settle below $46 a barrel.

European markets fell 0.5%-1.7% with DAX leading the losses as euro climbed to trade near two-year high against the dollar.

Euro rose 0.4% to $1.167, building on Thursday's solid gains after the president of the European Central Bank, Mario Draghi said that tapering will be discussed in the autumn. Dollar index fell about 0.3% to 93.97.

For the week, Dow lost 0.3% but S & P 500 and Nasdaq added 0.5% and 1.2% respectively. In Europe, FTSE gained 1% but DAX and CAC tumbled 3.1% and 2.2% respectively. In Asia, Nikkei fell 0.1% while Hang Seng and Shanghai were up 1.2% and 0.5% respectively.

AT HOME

After gaining about half a percent in first hour, benchmark indices plunged nearly a percent from the top of the day, only to recoup all the lost ground and finally ended higher by four tenth of a percent. Sensex settled at 32029, up 124 points while Nifty climbed 42 points to finish at 9915. BSE mid-cap and small-cap indices were almost flat.

BSE Energy and IT indices added 2.2% and 1.6% respectively, becoming top gainers among the sectoral indices while Realty and Telecom indices were the top losers, down 1.1% and 1% respectively. Wipro soared 6.1%, becoming top Nifty gainer, followed by 3.6% higher Reliance Industries. Bharti Airtel and Indiabulls Housing were the top losers, down 2.1% each. BSE advance-decline ratio stood at 1:1.1.

FIIs net bought stocks, index futures and stock futures worth Rs 13 cr, 215 cr and 1033 cr respectively. DIIs were net buyers to the tune of Rs 148 cr.

Rupee appreciated 11 paise to end at 64.32/$.

For the week, Sensex was little changed while Nifty gained 0.3%.

Reliance Industries surged 3.7% after Chairman Mukesh Ambani announced 1:1 bonus and launch of JioPhone at the 40th AGM of the company.

OUTLOOK

Today morning, Asian markets, except a marginally higher Hang Seng, are trading with cuts of upto a percent with Nikkei leading the losses. SGX Nifty is suggesting a flattish start for our market.

In Friday's report we had reiterated the view that 9928, the top made on 17th July, continues to be immediate hurdle, a crossover of which is required for a fresh upmove.

Nifty, after touching a high of 9925, closed at 9915 and is set to open marginally lower today.

9928 continues to be immediate hurdle, upon decisive crossover of which, 10070 would be the next target.

Meanwhile, 9792, the bottom made last week, continues to be immediate support, with the stop-loss of which, existing longs should be held on to.

HDFC Bank, ZEE Entertainment, Indiabulls Housing Finance, Bharti Infratel and Ambuja Cement will report their quarterly earnings today.