20-DMA SUPPORT IN SIGHT

 

20-DMA SUPPORT IN SIGHT

 

WORLD MARKETS

 

U.S. indices fell 0.6%-0.7%, with the Dow snapping a 13-day winning streak, as 10-year treasury yield rose above the key 4% level after strong GDP data.

 

U.S. GDP grew 2.4% in the second quarter, better than the 2% increase expected. Personal consumption expenditures price index rose 2.6% in the second quarter, lower than the 3.2% increase expected and the 4.1% rise in the prior quarter. Jobless claims fell 7,000 to a seasonally adjusted 221,000 for the week ended July 22.

 

Honeywell fell more than 5% as revenue missed estimate. Meta Platforms shares climbed 4.4% on better-than-expected results and strong guidance.

 

U.S. 10-year treasury yield surged 13 bps to 4.004%. Dollar index jumped 0.6% to 101.69. Gold tumbled 1.3% to $1946 per ounce.

 

Brent crude rose 1.6% to $84.35 a barrel and WTI crude settled up by 1.7% to $80.09.

 

European markets gained 0.2%-2.1%. ECB hiked interest rate by 25 bps as was widely-expected but hinted at a possible pause to rate hikes.

 

AT HOME

 

After rising just under half a percent in the initial trade, benchmark indices nosedived a percent and third from the top but recouped some of the losses in last half an hour to finally end lower by 0.6%. Sensex settled at 66266, down 440 points while Nifty lost 118 points to finish at 19659. Nifty mid-cap index rose 0.3% while small-cap index ended flat.  Nifty Pharma and Healthcare indices surged 3% and 2.6% respectively, becoming top gainers among the sectoral indices while Auto and Private Bank indices were the top losers, down 1.2% and 1% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3979 cr, 3090 cr and 4863 cr respectively. DIIs were net buyers to the tune of Rs 2528 cr.

 

Rupee appreciated 7 paise to end at 81.93/$.

 

Cipla shares surged on the back of robust earnings for the first quarter of FY24. M & M shares plunged as buying stake in RBL Bank raised concerns related to company's capital allocation strategy.

 

For the July series, Nifty surged 3.6%, marking the fourth consecutive positive series.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-1.5% and GIFT Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 19991, the top made last week, continued to be immediate hurdle while 19650-19600 continued to be immediate support area.

 

Nifty, after touching a low of 19603, rebounded to end at 19659. The benchmark is set to open around 19600 today.

 

A lower start today would see Nifty testing the support of 20-DMA, which will inch higher to 19580-19600 region today. If this support is breached, 19450, the 78.6% retracement level of the recent 19303-19991 upmove, would be next downside target; 19867, the top made yesterday, is the immediate hurdle, above which, 19991, the top made last week, would be next upside level to eye.

 

For Banknifty, 45400 continues to be immediate support on the hourly chart; 46370, the top made last week, which was nearly retested yesterday, is the immediate hurdle.

 

IOC and Marico will report their quarterly earnings today.

Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.