11390-11190 CONTINUES TO BE IMMEDIATE RANGE

 

11390-11190 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.3% and 0.2% respectively as sentiment was dampened by a lack of progress on a new coronavirus aid bill. Nasdaq however gained 0.3% as tech shares outperformed.

 

House Speaker Nancy Pelosi said she will not restart talks with Republicans on the matter until they increase their aid offer by $1 trillion.

 

Meanwhile, U.S. jobless claims for the week ending August 7 totaled 963,000, below the estimate of 1.1 million.

 

Brent crude fell 43 cents, or 1%, to $45.00 a barrel while WTI settled 43 cents, or 1%, lower at $42.24 per barrel after the International Energy Agency lowered its 2020 oil demand forecast.

 

European markets fell 0.5%-1.5%.

 

AT HOME

 

After rising nearly half a percent in the initial trade, benchmark indices slipped through the session to end marginally in the red, extending the losing streak to second straight day. Sensex lost 59 points to settle at 38310 while Nifty finished at 11300, down 8 points. BSE mid-cap and small-cap indices however surged 1.6% and 0.8% respectively. BSE Capital Goods and Industrials indices climbed 3.8% and 3.2% respectively, becoming top gainers among the sectoral indices while Telecom index was the top loser, down 1.5%, followed by 0.6% lower Healthcare index.

 

FIIs net bought stocks and index futures worth Rs 416 cr and 767 cr respectively but net sold stock futures worth Rs 529 cr. DIIs were net sellers to the tune of Rs 764 cr.

 

Rupee depreciated 1 paise to end at 74.84/$.

 

July CPI surged to 6.93% on the back of elevated food and vegetable prices. The figure for June was also revised upward from 6.09% to 6.23%. Core inflation too inched up from 5.4% in June to 5.9%.

 

Eicher motors reported weak set of quarterly earnings with Royal Enefield revenue falling 60%. Hero MotoCorp earnings were weak but better-than-expected and management commentary was also positive. Tata Steel's India as well as European EBIDTA/tonne disappointed. BPCL earnings were largely in-line.

 

OUTLOOK

 

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had reiterated the view that 11390, the top made on 5th March, continued to immediate hurdle while 11190 continued to be immediate support on the hourly chart.

 

Nifty, after touching a high of 11359 in the initial trade, slipped to end at 11300.

 

11390, the top made on 5th March, continues to be upside resistance to eye. Above 11390, 11433, the top made on 2nd March, would be the next target.

 

11190 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.

 

July WPI data will be released today. Supreme Court hearing on AGR case is also scheduled today.

 

Hindalco will report its quarterly earnings today.