11341-11064 CONTINUES TO BE IMMEDIATE RANGE

 

11341-11064 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow and S & P 500 rose 0.2% and 0.1% respectively, extending the winning streak to sixth straight day while Nasdaq fell 0.9%, snapping a seven-session winning streak. Markets digested mixed cues of a stronger-than-expected jobs report and rising tensions between Washington and Beijing.

 

The U.S. economy added 1.763 million jobs in July, outstripping expectations of a 1.4 million rise. Unemployment rate was also better than expected, falling to 10.2%. The jobs reports for June and May were also revised sharply higher.

 

Tension between US and China escalated. President Trump on Thursday night issued executive orders that would ban transactions with WeChat and TikTok in 45 days. In another development, U.S. on Friday sanctioned Hong Kong Chief Executive Carrie Lam.

 

Meanwhile, talks between the White House and Democratic leaders on fresh coronavirus stimulus fell apart. House Speaker Nancy Pelosi told the White House to come back to the table with a higher number for the relief package. Meanwhile, Treasury Secretary Steven Mnuchin said no progress was made.

 

Brent crude fell 78 cents, or 1.7%, to $44.31 a barrel while WTI settled 67 cents, or 1.6%, lower at $41.28 per barrel.

 

European markets gained 0.1%-0.7%. France’s June trade balance came in at -7.96 billion euros ($-9.43 billion) compared to a revised -7.46 billion euros in May. German industrial output climbed 8.9% in June, buoyed by a 14.9% rise in exports.

 

For the week, Dow climbed 3.8% while S & P 500 and Nasdaq gained nearly 2.5% each.  Brent crude  rose 2.3% while WTI gained 2.1%.

 

AT HOME

 

Benchmark indices ended marginally higher after a rangebound but choppy session. Sensex settled at 38040, up 15 points while Nifty added 14 points to finish at 11214. BSE mid-cap and small-cap indices climbed 1.4% and 0.8% respectively. BSE Power and Telecom indices gained 1.2% and 1% respectively, becoming top gainers among the sectoral indices while Consumer Durables and IT indices slipped 1.7% and 1.2% respectively, becoming top losers.

 

FIIs net bought stocks worth Rs 397 cr but net sold index futures and stock futures worth Rs 63 cr and 1310 cr respectively. DIIs were net sellers to the tune of Rs 439 cr.

 

Rupee ended unchanged at 74.93/$.

 

For the week, Sensex and Nifty gained 1.2% and 1.3% respectively.

 

OUTLOOK

 

US president Trump yesterday signed several executive orders aimed at extending coronavirus relief.

 

Markets in Japan are closed today for a public holiday while Hang Seng and Shanghai are down 0.8% and 0.3% respectively.  SGX Nifty is suggesting a flattish start for our market.

 

In Friday's report we had said that 11341, the top made the previous week, continued to be next major target/resistance to eye and that 11064, the bottom made Wednesday, would act as immediate support, with the stop-loss of which, trading longs should be held on to.

 

Nifty, after touching a low of 11142 in the initial trade, rebounded to end at 11214.

 

11341, the top made on 29th July, continues to be important immediate target/resistance to eye.

 

11064, the bottom made on Wednesday, continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

 

Supreme court is expected to pronounce its judgment on the timeline of staggered payments of adjusted gross revenue-(AGR) related dues by the telecom companies.

 

BoB, Titan and Powergrid will report their quarterly earnings today.