NIFTY EXTENDS CONSOLIDATION WITHIN 11495-11340 RANGE

NIFTY EXTENDS CONSOLIDATION WITHIN 11495-11340 RANGE

WORLD MARKETS

Dow soared 1.6% while S & P 500 and Nasdaq gained 0.8% and 0.4% respectively on the back strong quarterly results from Walmart and Cisco Systems and reports that America and China would resume trade talks.

White House economic advisor Larry Kudlow confirmed the news that China and the U.S. will hold a fresh round of trade talks later in August. Shares of Boeing and Caterpillar, which get a large share of their revenue from outside the U.S., rose 4.3% and 3.2% respectively.

Walmart surged 9.3% after the company reported its biggest jump in U.S. sales in a decade.

Weekly jobless claims totaled 212,000 last week, slightly below the estimate of 215,000. Housing starts totaled 1.168 million in July, well below the expected 1.26 million.

European markets, except a 1.8% lower Italy, gained 0.4%-0.8%. Italy plunged as shares in motorway operator Atlantia fell 25%.

AT HOME

Benchmark indices ended lower by about half a percent after recovery of morning sessions was reversed by the noon weakness. Sensex settled at 37663, down 188 points while Nifty lost 50 points to finish at 11385. BSE mid-cap and small-cap indices fell 0.5% and 0.2% respectively. BSE Metal index tumbled 2.2%, becoming top loser among the sectoral indices, followed by 1% lower Capital Goods and Basic Material indices. Healthcare and IT indices were the top gainers, up 1% and 0.6% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 825 cr, 433 cr and 21 cr respectively. DIIs were net buyers to the tune of Rs 134 cr.

Rupee depreciated 26 paise to end at 70.15/$.

OUTLOOK

Today morning, Hang Seng is up 1% while Shanghai and Nikkei are up half a percent each. SGX Nifty is suggesting about 10 points higher start for our market.

In yesterday's report we had mentioned that 11340-11495 is the immediate range, a crossover of which, on either side, is required to take a fresh directional view on Nifty.

Yesterday, Nifty fell 50 points to close at 11385 and is set to open near 11400 today.

11340, the low made on Monday, continues to be immediate support, below which, 11235, the bottom made on 2nd August, would be the next support to eye. 11495, the top made last week, continues to be immediate hurdle.