11190 ABOVE 11112; 10882 IS THE SUPPORT

11190 ABOVE 11112; 10882 IS THE SUPPORT

WORLD MARKETS

Dow rose 0.6% while S & P 500 and Nasdaq gained 0.4% each, watching negotiations on a new coronavirus stimulus package.

House Speaker Nancy Pelosi said that she, Senate Minority Leader Chuck Schumer and White House chief of staff Mark Meadows held “productive” discussions on Monday, despite a handful of issues still outstanding.

Both sides have indicated they agree on another $1,200 stimulus check, but remain deadlocked on additional unemployment assistance.

Brent futures rose 57 cents, or 1.3%, to $44.72 a barrel, while WTI crude rose 69 cents, or 1.7%, to settle at $41.70 per barrel.

In Europe, DAX fell 0.4% while FTSE and CAC gained 0.05% and 0.3% respectively. Euro zone producer prices rose by more than expected in June, ending consecutive monthly declines seen since February.

AT HOME

Bulls came back with a vengeance as benchmark indices climbed 2%, snapping 4-day losing streak. Sensex settled at 37687, up 748 points while Nifty added 211 points to finish at 11102. BSE mid-cap and small-cap indices gained 1% and 1.2% respectively. Except 0.7% and 0.4% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Energy index leading the tally, up 5.6%, followed by 2.1% higher Finance index.

FIIs net bought stocks, index futures and stock futures worth Rs 704 cr, 1228 cr and 505 cr respectively. DIIs were net sellers to the tune of Rs 666 cr.

Rupee depreciated 4 paise to end at 75.05/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.1%-0.7% and SGX Nifty is suggesting around 20 points lower start for our market.

In yesterday's report we had said that 10820, the 67% retracement level of the 10562-11341 upmove, continued to be next downside target/support while 11084 was the immediate hurdle, with the stop-loss of which, trading shorts could be held on to.

Nifty soared to touch a high of 11112 before closing at 11095, crossing the 11084 hurdle.

11112, the top made yesterday, also coincided with the 50% retracement level of the recent 11341-10882 fall. Once 11112 is crossed, 11190, the 67% retracement level of this fall, would be the next target/hurdle.

10882, the low made Monday, would now act as immediate support.