NIFTY REBOUNDS AFTER ACHIEVING 9470-9420 TARGET AREA; 9576 IMMEDIATE HURDLE

NIFTY REBOUNDS AFTER ACHIEVING 9470-9420 TARGET AREA; 9576 IMMEDIATE HURDLE

WORLD MARKETS                             

Dow and S & P 500 gained 0.3% and 0.2% respectively while Nasdaq lost 0.1% on Friday

European markets fell 0.6%-0.8% following news that several British banks have stopped trading Qatari riyals for retail customers as the diplomatic crisis in the Gulf grows.

US crude climbed $1.11 or 2.5% to $46.04, extending the winning streak to seventh straight session. Brent added 48 cents to $47.90. Baker Hughes reported its weekly count of oil rigs operating in U.S. fields fell for the first time since January.

For the week, Dow and S & P 500 fell 0.2% and 0.6% respectively while Nasdaq tumbled 2% as rise in banking stocks was more than offset by fall in technology stocks. European markets plunged 1.5%-3.2%. In Asia, Nikkei fell half a percent but Shanghai and Hang Seng were up 1% and 0.4% respectively.

AT HOME

After falling more than half a percent in first hour, benchmark indices saw a sustained northward move through rest of the session to end higher by a fifth of a percent. Sensex added 64 points to settle at 30922 while Nifty finished at 9521, up 17 points. BSE mid-cap and small-cap indices gained two-third of a percent each. BSE FMCG and Consumer Durable indices soared 2.2% and 2.1% respectively, becoming top gainers among the sectoral indices while Telecom and Realty indices were the top losers, down 0.6% and 0.5% respectively.

Rupee appreciated 5 paise to end at 64.58/$.

For the week, Sensex and Nifty lost 0.7% and 0.6% respectively, extending the losing streak to third straight week.

For the month of June, Sensex and Nifty fell 0.7% and 1% respectively, breaking 5-month winning streak.

Historic Goods and Services Tax became a reality from Friday midnight.

Growth of core sector, comprising of eight core industries, slowed to 2.5% in April, down from 5.3% in March and 8.7% a year earlier.

Maruti reported 7.6% rise in June sales at 106394 units. Tata Motor sold 9% less at 40358 units. That of M & M too fell 8% to 35716 units but tractor sales rose 9% to 32933 units. Eicher Motors reported 25% higher Royal Enfield sales. 

OUTLOOK

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

After Nifty broke the 9560 support we had given downside target of 9470-9420. Nifty, on Friday, touched a low of 9449 before closing at 9521, achieving this target area and vindicating our view.

9420 continues to be support to eye, upon breach of which, 20-week moving average, placed around 9300, would be the next meaningful support.

9576, the top made on Thursday, is now the immediate hurdle, above which 9710 would be the next big hurdle to eye.