10500-10550 CONTINUES TO BE TARGET ZONE; TRAIL STOP-LOSS TO 10370

10500-10550 CONTINUES TO BE TARGET ZONE; TRAIL STOP-LOSS TO 10370

WORLD MARKETS

Nasdaq ended marginally in the green while Dow and S & P 500 fell 0.3% and 0.1% respectively

Nasdaq extended the winning streak to eighth day, as Amazon rose 0.6% to an all-time high while Apple jumped 0.8%. Energy and financial shares dragged the S & P 500 lower.

The producer's price index remained unchanged in July, as against expected gain of 0.2%.

Dollar index rose half a percent to 95.60, marking a 13-month high.

US crude fell 13 cents to $66.81/bbl.

European markets ended mixed with FTSE and Italy in red while DAX and CAC in green.

AT HOME

Sensex and Nifty ended with gains of 0.4% and 0.2% respectively after a rangebound but choppy trade, hitting yet another record high. Sensex added 137 points to settle at 38024 while Nifty finished at 11470, up 20 points. BSE mid-cap and small-cap indices rose 0.6% and 0.3% respectively. BSE Realty index soared 2.4%, becoming top gainer among the sectoral indices, followed by 1.4% higher Metal index. Telecom and Consumer Durable indices were the top losers, down 1.3% and 0.9% respectively.

FIIs net bought stock and stock futures worth Rs 371 cr and 559 cr respectively but net sold index futures worth Rs 282 cr. DIIs were net sellers to the tune of Rs 85 cr.

Rupee depreciated 5 paise to end at 68.67/$.

Eicher Motors' results were largely in-line with estimates. Net profit rose 25% to Rs 576 cr while revenues rose 27% to Rs 2547 cr. EBITDA was up 30% at Rs 809 cr and margin expanded 70 bps to 31.8%.

Aurobindo Pharma’s consolidated net profit fell 12.1% to Rs 456 cr while revenue was up 15.5% to Rs 4250 cr. EBITDA fell 7.4% to Rs 779 cr and margin fell to 18.3% from 22.9%.

OUTLOOK

Today morning, Shanghai is flat while Hang Seng and Nikkei are down 0.2% and 0.5% respectively. SGX Nifty is suggesting a flattish start for our market.

After Nifty crossed 11428 top made on Monday, we have been working with target zone of 11500-11550. Nifty, yesterday touched a high of 11495, closed at 11470 and is set to open flat today.

10500-10550 continues to be upside target zone to eye.

Immediate support on the hourly chart has moved up to 11370, with the stop-loss of which, trading longs can be held on to.

SBI, Hindalco and Glenmark will report their quarterly earnings today.