NIFTY REBOUNDS SMARTLY AFTER TESTING 10550 SUPPORT; 10745, 10837 UPSIDE HURDLES

NIFTY REBOUNDS SMARTLY AFTER TESTING 10550 SUPPORT; 10745, 10837 UPSIDE HURDLES

WORLD MARKETS

US indices gained 0.1%-0.2% on Friday.

Canada announced retaliatory tariffs on Friday that target $12.6 billion in U.S. goods in response to tariffs on its steel and aluminum imports.

Media reports suggested that Trump has repeatedly told top White House officials that he wants the U.S. to withdraw from the World Trade Organization.

Nike shares jumped 11% percent and reached an all-time high after the company reported quarterly earnings and revenue that beat expectations.

Oil prices rose on looming sanctions on Iran. WTI rose 70 cents or 1% to $74.15, its best closing since Nov. 24, 2014 while Brent surged $1.59 or 2% to $78.44, just shy of a 3-1/2 year high.

European markets rose 0.3%-1.1%. Political leaders reached a tentative agreement on migration after almost 10 hours of talks at a summit in Brussels, Belgium. Eurozone inflation rose to reach 2% in June, up from 1.9% a month earlier.

For the week, Dow and S & P 500 fell 1.3% each while Nasdaq was down 2.4%. For the Dow, it was the third consecutive down week while Nasdaq and S & P 500 were down for the second straight week. European markets fell 0.6%-2.2%, marking the second straight down week. Asian markets fell 0.9%-1.5% with Shanghai down for the sixth straight week and Hang Send down for the third week.

China's official manufacturing PMI declined to 51.5 for the month of June, missing the 51.6 forecast.

AT HOME

Sensex and Nifty soared 1.1% and 1.2% respectively, registering the biggest single day gain since 31st May and 5th April respectively. Sensex added 385 points to settle at 35423 while Nifty finished at 10714, up 125 points. BSE mid-cap and small-cap indices climbed 1.8% and 1.9% respectively. BSE mid-cap had its best day since 5^th April and for small-cap index, this was the largest gain since 7^th June. All the BSE sectoral indices ended in green with Consumer Durable index leading the tally, up 2.9%, followed by 2.8% higher Metal and Capital Goods indices.

FIIs net sold stocks worth Rs 157 cr while DIIs were net buyers to the tune of Rs 2263 cr.

Rupee appreciated 32 paise to end at 68.46/$.

For the week, Sensex and Nifty fell 0.7% and 1% respectively.

Maruti Suzuki reported 36.3% rise in June sales at 1.45 lac units. M & M sales were up 26% at 45155 units. For Eicher Motors, Royal Enfield sales grew 18% to 74477 units while CV sales were up 63% at 6390 units. Tata Motors domestic sales were up 54% at 56773 units.

OUTLOOK

Oil prices are trading lower by nearly a percent today after Trump said in a tweet over the weekend that Saudi Arabia had agreed to raise production by up to 2 million barrels per day.

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

Nifty, after nearly testing 10550 support on Thursday, rebounded smartly on Friday to end at 10714.

10745, where 20-DMA is placed, is the immediate resistance on the way up above which 10837, the immediate previous top made on 22nd June, would be the next hurdle to eye.

10550 continues to be important support.