15900-15962 IS THE RESISTANCE ZONE; 15513 IMPORTANT SUPPORT

 

15900-15962 IS THE RESISTANCE ZONE; 15513 IMPORTANT SUPPORT

 

WORLD MARKETS

 

US indices fell 0.4%-0.7% on Friday

 

The core personal consumption expenditures price index rose 3.5% y-o-y in June, slightly below forecast of a 3.6% jump. U.S. second-quarter GDP accelerated 6.5%y-o-y, considerably less than the 8.4% rate of growth expected.

 

Amazon sank 7.6% after reporting its first quarterly revenue miss in three years and gave weaker guidance.

 

US 10-year Treasury yield fell 4 basis points to 1.231%. Dollar index rose 0.32% to 92.181. Spot gold slipped 0.8% to $1,814.00 per ounce.

 

Brent crude dipped 2 cents to $76.03 a barrel while WTI futures slid 8 cents to $73.53 per barrel.

 

European markets fell 0.3%-0.6%. The euro zone economy posted a sharper rebound than expected in the second quarter to grow by a quarterly 2%. Euro zone inflation climbed to 2.2% in July, its highest rate since October 2018. German annual consumer price inflation spiked to 3.1% in July, its highest since August 2008.

 

For the week, Dow and S & P 500 fell 0.4% each while Nasdaq slipped 1.1%. Dollar index fell 0.8% for its worst weekly performance since the first week of May. Crude oil gained nearly 2%.

 

AT HOME

 

After rising half a percent, benchmark indices nosedived in late noon trade to end marginally in the red. Sensex settled at 52586, down 66 points while Nifty lost 15 points to finish at 15763.Nifty mid-cap and small-cap indices however climbed 1.1% and 0.4% respectively. BSE Healthcare index surged 2.2% becoming top gainer among the sectoral indices, followed by 0.9% higher Utilities and Auto indices. Metal and Energy indices were the top losers, down 1% and 0.8% respectively.

 

FIIs net sold stocks and index futures worth Rs 3848 cr and 1884 cr respectively but net bought stock futures worth Rs 2314 cr. DIIs were net buyers to the tune of Rs 2957 cr.

 

Rupee depreciated 12 paise to end at 74.41/$.

 

For the week, Sensex and Nifty fell 0.7% and 0.6% respectively, extending the losing streak to second consecutive week.

 

Maruti July sales beat estimate while Escorts, Tata Motors and Eicher Motors' Royal Enfield sales were a miss.

 

OUTLOOK

 

Today morning, Nikkei is up nearly 1.5% while Hang Seng and Shanghai are down 0.2% and 0.6% respectively.  SGX Nifty is suggesting around 75 points higher start for our market.

 

In Friday's report we had said that 15513, the low made Wednesday, continued to be immediate support while 15817, the top made Thursday, was the immediate hurdle.

 

Nifty, after making a top of 15862, slipped to end at 15763. The benchmark is set to open near 15850 today.

 

15900-15962 continues to be next resistance zone, upon crossover of which, 16300-16400 would be the next target zone to eye.

 

15513, the low made last week, which is also the low of July, is the important immediate support to eye.