10328 IS THE NEXT TARGET; 9900 IMMEDIATE SUPPORT

10328 IS THE NEXT TARGET; 9900 IMMEDIATE SUPPORT

WORLD MARKETS

Dow fell 0.2% while S & P 500 and Nasdaq rose 0.1% and 0.3% respectively amid an uptick in coronavirus infections in parts of the United States and an elevated level of weekly jobless claims.

Initial U.S. jobless claims totaled 1.5 million for last week, topping estimate of 1.3 million.

Texas, California, Arizona and Florida all reported their biggest-ever one-day increase in coronavirus cases.

Brent crude futures rose 78 cents to $41.48 a barrel while WTI crude futures gained 88 cents to settle at $38.84 per barrel.

Main European markets fell 0.5%-0.8%. The Bank of England added another £100 billion to its bond-buying program, taking the total value of its Asset Purchase Facility (APF) to £745 billion.

Meanwhile, China said that a coronavirus outbreak in Beijing, which saw 21 new cases confirmed on Wednesday and 31 the day before, was now under control.

AT HOME

After three days of tug of war, bulls swept yesterday's trade as benchmark indices soared more than 2% to close at the highest level since 10th June. Sensex settled at 34208, up 700 points while Nifty added 210 points to finish at 10091. BSE mid-cap and small-cap indices gained 1% and 1.5% respectively. Except 0.1% lower Telecom and Healthcare indices, all the BSE sectoral indices ended higher with Bankex and Finance indices leading the tally, up 3.8% and 3.6% respectively.

Rupee appreciated 1 paise to end at 76.14/$.

FIIs net bought stocks, index futures and stock futures worth Rs 367 cr, 172 cr and 1230 cr respectively. DIIs were net buyers to the tune of Rs 1131 cr.

The Supreme Court directed telecom companies to provide their financial documents and gave the Department of Telecommunication (DoT) time until July third week to consider the proposals by the companies on making payment for the AGR dues.

OUTLOOK

Today morning, Shanghai and Nikkei are up 0.4% and 0.3% respectively while Hang Seng is flat. SGX Nifty is suggesting around 30 points lower start for our market.

In yesterday's report we had reiterated the view that 10070, the 67% retracement level of the recent 10328-9544 fall, continued to be immediate hurdle, while 9726, the low made Monday, continued to be immediate support.

Nifty, after making a low of 9845 in the initial trade, surged to touch a high of 10111 before closing at 10091, crossing the 10070 hurdle decisively.

10328, the top made last week, is the next upside target to eye.

9900 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.