11500-11550 IS THE NEXT TARGET ZONE; TRAIL STOP-LOSS TO 11360

11500-11550 IS THE NEXT TARGET ZONE; TRAIL STOP-LOSS TO 11360

WORLD MARKETS

Nasdaq gained 0.1% while S & P 500 ended marginally in the red but Dow fell 0.2% as China announced new tariffs on US goods. Nasdaq rose for the seventh consecutive day as Facebook and Amazon gained.

After the U.S. Trade Representative's office released a finalized list of $16 billion worth in Chinese goods that will be hit with tariffs, taking effect on Aug. 23, China announced that it will levy 25% tariffs on U.S. gasoline, diesel, large passenger cars and motorcycles and other goods.

Shares of big exporters Caterpillar and Boeing fell 2% and 1% respectively.

US crude tumbled 3.2% to $66.94/bbl, marking a 7-week low. Brent too fell 3.2% to $72.28.

In Europe, FTSE rose 0.8% but other markets fell 0.1%-0.4%.

AT HOME

Benchmark indices ended higher by 0.6% each after a choppy trade to hit a fresh record high. Sensex added 222 points to settle at 37888 while Nifty finished at 11450, up 60 points. BSE mid-cap and small-cap indices however underperformed, rising just 0.2% and 0.03% respectively. BSE Energy and Telecom indices soared 1.9% and 1.7% respectively, becoming top gainers among the sectoral indices while Healthcare, Auto and Power indices fell 0.3% each, becoming top losers.

FIIs net bought stocks, index futures and stock futures worth Rs 569 cr, 659 cr and 85 cr respectively. DIIs were net buyers to the tune of Rs 30 cr.

Rupee appreciated 6 paise to end at 68.62/$.

Lupin’s results disappointed on all the counts. Net profit plunged 43.4% y-o-y to Rs 203 cr while Revenue fell 0.4% to Rs 3856 cr. EBITDA tumbled 31.4% to Rs 527 cr and margins contracted 620 bps to 13.7%.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.3%-0.4% and SGX Nifty is suggesting a flattish start for our market.

After two-day consolidation, Nifty broke the 11430 top made on Monday and suged all the way to 11460 before closing at 11450.

11500-11550, as mentioned in yesterday's report, contiues to be next upside target zone to eye.

Immediate support on the hourly chart has moved up to 11360, with the stop-loss of which, trading longs can be held on to.

Eicher Motors, Aurobindo Pharma, Bharat Forge and JSPL will report their quarterly earnings today.