15840 IS IMMEDIATE HURDLE

 

15840 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices surged 1.5%-1.6% on Tuesday, recouping much of their losses from Monday’s sell-off.

 

Yesterday, US indices gained 0.8%-0.9%, extending previous session's solid gains and turning positive for the week.

 

Coca-Cola and Johnson & Johnson reported better-than-expected earnings.

 

US 10-year Treasury yield jumped 8 bps to 1.29%. Dollar index inched lower by 0.2% to 92.755, pulling back from more than three-month high. Spot gold fell 0.4% to $1,803.41 per ounce.

 

Brent crude futures climbed 4.2% to $72.23 per barrel while WTI futures gained 4.6% to settle at $70.30 per barrel

 

European markets climbed 1.4%-2.5%

 

Japan’s exports rose 48.6% in June as compared with a year earlier, higher than a 46.2% increase expected.

 

AT HOME

 

After falling more than a percent in the morning, Sensex and Nifty recouped some of the losses in noon to end lower by 0.7% and 0.8% respectively, extending the losing streak to third consecutive day and closing at the lowest level after 9th June and 2nd June respectively. Sensex settled at 52198, down 355 points while Nifty lost 120 points to finish at 15632. Nifty mid-cap and small-cap indices tumbled 1.4% each. All the BSE sectoral indices ended in red with Realty and Metal indices leading the losses, down 2.4% each.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2835 cr, 1785 cr and 365 cr respectively. DIIs were net buyers to the tune of Rs 873 cr.

 

Rupee appreciated 25 paise to end at 74.62/$.

 

OUTLOOK

 

Nikkei is shut today while Hang Seng is up nearly 1.5% and Shanghai is up 0.1%. SGX Nifty is trading around 15735, suggesting nearly 100 points higher start when compared to Tuesday's close of Nifty futures.

 

In Tuesday's report we had said that 15632, the low made on 9th July was the next important support to eye.

 

Nifty, after achieving 15632 level, fell further to 15578, but recovered from there to end at 15632. The benchmark is set to open above 15700 today.

 

15578, the low made Tuesday, is the immediate support to eye, below which, 15450, the low made in June, would be the crucial support.

 

15840 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

33900, the low made in June, is the next support for Banknifty; 35400-35500 is the immediate resistance zone.

 

HUL and Bajaj Auto will report their quarterly earnings today.