10827 IS IMMEDIATE HURDLE; 10544 IMMEDIATE SUPPORT

10827 IS IMMEDIATE HURDLE; 10544 IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.6%-0.9%, with the Dow extending the winning streak to fourth straight day, on the back of positive coronavirus vaccine news and a blowout quarter from Goldman Sachs.

Data published by the New England Journal of Medicine showed Moderna’s coronavirus vaccine produced a “robust” immune response, or neutralizing antibodies, in all 45 patients in its early stage human trial.

Brent crude rose 75 cents, or 1.8%, to $43.65 a barrel, and WTI rose 91 cents, or 2.26%, to settle at $41.20 per barrel. Data from the Energy Information Administration showed U.S. crude inventories fell 7.5 million barrels last week, higher than the expected fall of a 2.1 million-barrel.

European markets climbed 1.8%-2%.

AT HOME

After rising 2% in morning, benchmark indices nosedived in late noon trade to end just marginally higher. Sensex settled at 36051, up 18 points while Nifty added 10 points to finish at 10618. BSE mid-cap and small-cap indices lost 0.4% and 0.05% respectively. BSE IT and Teck indices climbed 4.9% and 3.1% respectively, becoming top gainers among the sectoral indices while Telecom and Energy indices were the top losers, down 3.6% and 3.2% respectively.

FIIs net sold stocks worth Rs 222 cr but net bought index futures and stock futures worth Rs 1590 cr and 139 cr respectively. DIIs were net sellers to the tune of Rs 899 cr.

Rupee appreciated 27 paise to end at 75.14/$.

Infosys reported stellar set of numbers. Constant currency revenue fell 2% while margins expanded 150 bps, both beating expectations by a wide margin. The company guided for a 0-2% growth for FY21, again higher than market expectations.

India reported a trade surplus of $0.8 bn in June as against deficit of $3 bn in May as exports rose to $21.9 bn while imports fell to $21.1 bn.

OUTLOOK

China's Q2 GDP has come in at 3.2%, better than the expected 2.5% figure. June industrial output growth has come in at 4.8%, the expected figure being 4.7%.

Today morning, Asian markets are trading flat to modestly lower and SGX Nifty is suggesting around 20 points higher start for our market.

In yesterday's report we had said that 10770 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shors can be held on to.

Nifty, crossed 10770 hurdle and surged all the way to 10827 but reversed sharply from there to end much lower at 10618.

10544, the 50% retracement level of the recent 10194-10894 upmove, continues to be immediate downside target/support to eye, upon breach of which, 10425, the 67% retracement level of the 10194-10894 upmove, would be the next support.

10827, the top made yesterday, is now the immediate hurdle to eye.