19500 BELOW 19650; 19991 IS IMMEDIATE HURDLE

 

19500 BELOW 19650; 19991 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices gained 0.2%-0.5%, with the Dow rising for the 11th consecutive session. Energy stocks led gains after oil and gasoline futures touched a three-month high.

 

A purchasing managers’ survey showed U.S. business activity slowed to a five-month low in July, dragged down by decelerating service sector growth.

 

U.S. 10-year treasury yield rose 4 bps to 3.878%. Dollar index rose 0.3% to 101.38. Gold fell 0.3% to $1955 per ounce.

 

Brent and WTI crude futures rose 2.1% each to $82.74 and $78.74 a barrel respectively to reach a near three-month high.

 

In Europe, FTSE and DAX inched up 0.2% and 0.1% respectively while CAC eased 0.1%. Euro zone business activity shrank much more than expected in July as demand in dominant services industry declined while factory output fell at the fastest pace since COVID-19 began, a survey showed. 

 

Data from Japan showed business activity expanded for a seventh straight month.

 

AT HOME

 

Benchmark indices slipped 0.4% each, extending losing streak to second straight day. Sensex settled at 66384, down 299 points while Nifty lost 72 points to finish at 19672. Nifty mid-cap index fell 0.2% but the small-cap index rose 0.4%, extending the winning streak to fourth consecutive day. Nifty FMCG index tumbled 1.7%, becoming top loser among the sectoral indices, followed by 0.7% lower Metal index. Healthcare and Pharma indices were the top gainers, up 0.4% each.

 

FIIs net sold stocks worth Rs. 83 cr but net bought index futures and stock futures worth Rs 316 cr and 1098 cr respectively. DIIs were net buyers to the tune of Rs 935 cr.

 

Rupee appreciated 13 paise to end at 81.82/$.

 

ITC shares fell after the company announced that its board has approved the demerger of the hotels business. Under the scheme of arrangement, ITC will hold 40% in the demerged entity and the balance shareholding would be held by ITC shareholders proportionate to their shareholding in ITC.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 3% and 1.5% respectively, reacting to news that China’s Politburo pledged to “adjust and optimize policies in a timely manner” for its ailing property sector. Nikkei is down 0.2% and GIFT Nifty is suggesting around 20 points higher start for our market.

 

In yesterday's report we had said that 19991, the top made last week, was the immediate hurdle and 19650 was the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty plunged all the way to 19658 before closing at 19672.

 

19650 continues to be immediate support on the hourly chart, upon beach of which, 19500, around which a trendline adjoining recent bottoms on hourly chart is placed, would be next downside level to eye; 19991, the top made last week, is the immediate hurdle.

 

For Banknifty, 46500, followed by 46800 are the upside targets to eye. 45400 is the immediate support on the hourly chart, below which, 45000, around which 20-DMA is placed, would be next support to eye. Meanwhile, trading longs can be held on to with the stop-loss of 45400.

 

Asian Paints and Bajaj Auto will report their quarterly earnings today.

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