19296-19650 CONTINUES TO BE IMMEDIATE RANGE

 

19296-19650 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.4% each while Nasdaq dipped 0.8% after Moody's downgraded the credit rating on several regional banks, citing deposit risk, a potential recession and struggling commercial real estate portfolios.

 

Philadelphia Fed President Patrick Harker signaled that the central bank could be at the end of its current rate-hiking cycle.

 

U.S. 10-year treasury yield fell 7 bps to 4.026%. Dollar index rose half a percent to 102.54. Gold fell 0.6% to $1925 per ounce.

 

Brent crude futures gained 83 cents to settle at $86.17 a barrel and WTI crude rose 98 cents to $82.92.

 

European markets fell 0.4%-2.1%, with Italy leading the losses as Italian lenders took a hit from the government’s surprise announcement of a 40% windfall tax on banking profits. sterling fell half a percent against U.S. dollar after a survey showed British retailers in July logged their slowest sales growth in 11 months.

 

China's trade data came in worse than expected as exports and imports dipped 14.5% and 12.4% y-o-y respectively as against expectation of a fall of 12.4% and 5% respectively.

 

AT HOME

 

Benchmark indices ended marginally lower, snapping a 2-day winning streak. Sensex settled at 65846, down 107 points while Nifty lost 26 points to finish at 19570. Nifty mid-cap and small-cap indices however gained quarter of a percent each, extending the winning streak to fourth straight day and with the mid-cap index hitting a fresh record high. Nifty PSU Bank index surged 3.4%, becoming top gainer among the sectoral indices, followed by 0.7% higher Media index. Metal index was the top loser, down 1.2%, followed by 0.3% lower Auto and FMCG indices.

 

FIIs net sold stocks and stock futures worth Rs 711 cr and 82 cr respectively but net bought index futures worth Rs 424 cr. DIIs were net buyers to the tune of Rs 537 cr.

 

Rupee depreciated 10 paise to end at 82.84/$.

 

OUTLOOK

 

China's July CPI slipped 0.3%, smaller than the 0.4% expected and marking the first fall since February 2021. Producer price index fell 4.4%, more than the 4.1% expected.

 

Today morning, Asian markets are trading flat to modestly lower while GIFT Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 19650, around which a trendline adjoining recent tops is placed, continued to be immediate hurdle, while 19296, the low made last week, continued to be immediate support.

 

Nifty, after touching a high of 19634, reversed to end at 19570.

 

19650, around which a trendline adjoining recent tops is placed, continues to be immediate hurdle, upon crossover of which, 19800-19870 would be next target area; 19296, the low made last week, continues to be immediate support.

 

For Banknifty, 45300 continues to be immediate hurdle above which, 44279, the low made last week, continues to be immediate support.

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