NIFTY RETREATS FROM THE VICINITY OF 200-DMA HURDLE

NIFTY RETREATS FROM THE VICINITY OF 200-DMA HURDLE

WORLD MARKETS

US indices gained 0.7%-1.4%, with Nasdaq leading the tally and notching a record closing high as rise in shares of big tech shares overshadowed a record daily increase in new U.S. Covid-19 cases.

Number of cases in the U.S. surpassed the 3 million mark, according to Johns Hopkins University. California, Hawaii, Idaho, Missouri, Montana, Oklahoma and Texas broke their previous daily record highs for new infections and Florida faces an impending shortage of intensive care unit beds. Earlier, on Tuesday, WHO acknowledged that evidence was emerging of the airborne spread of the coronavirus, after more than 200 scientists urged the body to update its guidance.

Brent crude futures rose 25 cents to $43.37 a barrel while WTI futures settled 28 cents higher at $40.90 per barrel.

European markets fell 0.6%-1.2%. U.K. Finance Minister Rishi Sunak on announced a back-to-work bonus scheme for businesses bringing furloughed employees back to work, and a 50% restaurant discount for all citizens through the month of August.

AT HOME

After rising nearly half a percent, benchmark indices nosedived nearly a percent and half from the top of the day in late noon trade to end lower by nine tenth of a percent, snapping five-day winning streak. Sensex settled at 36329, down 345 points while Nifty lost 94 points to finish at 10705. BSE mid-cap and small-cap indices fell 0.4% each, also falling for the first time after five consecutive days.  Except 1.7% and 0.5% higher Metal and Healthcare indices, all the BSE sectoral indices ended in red with Realty and Auto indices leading the losses, down 2% each, followed by 1.9% lower IT and Teck indices.

FIIs net sold stocks and stock futures worth Rs 995 cr and 1176 cr respectively but net bought index futures worth Rs 1002 cr. DIIs were net sellers to the tune of Rs 853 cr.

Rupee depreciated 8 paise to end at 75.01/$.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.8% and SGX Nifty is suggesting around 30 points higher start for our market.

In yesterday's report we had said that 10890, where 200 Day Simple Moving Average was placed, continued to be next upside target/resistance to eye and had advised trailing stop-loss in long positions to 10620.

Nifty, after touching a high of 10848, reversed to end at 10705 and is set to open near 10750 today.

200 Day Simple Moving Average, placed around 10885, continues to be important immediate hurdle.

Immediate support on the hourly chart has moved up to 10630, upon breach of which, 10520 and 10410, the 50% and 67% retracement levels of the recent 10194-10848 upmove, would be next downside targets/supports to eye.

TCS will report its quarterly earnings today.