19300 IS IMMEDIATE SUPPORT; 19650-19700 IS IMMEDIATE RESISTANCE ZONE

 

19300 IS IMMEDIATE SUPPORT; 19650-19700 IS IMMEDIATE RESISTANCE ZONE

 

WORLD MARKETS

 

Dow and Nasdaq fell 0.4% each while S & P 500 dipped half a percent on Friday, with the S & P 500 and Nasdaq falling for the fourth straight session while Dow dipped for the third day in a row.

 

Nonfarm payrolls data showed 187,000 jobs added in July, less than the 200,000 expected. The unemployment rate ticked lower to 3.5% from 3.6%. Average hourly wages rose 0.4% for the month, and 4.4% on an annualized basis, slightly ahead of the 0.3% and 4.2% expected, respectively.

 

Amazon jumped 8.3% to its highest level in nearly a year after beating expectations on profit and offering positive guidance. Apple lost 4.8% after reporting lower revenue than the year-ago quarter.

 

U.S. 10-year treasury yield fell 14 bps to 4.04%. Dollar index fell half a percent to 102. Gold rose half a percent to $1943 per ounce.

 

Brent crude futures rose 1.3% to $86.24 a barrel and WTI crude gained 1.6% to $82.82 a barrel.

 

European markets gained 0.4%-0.8%.

 

For the week, Nasdaq and S & P 500 fell 2.9% and 2.3% respectively for their worst weeks since March. Dow fell 1.1%.

 

AT HOME

 

Benchmark indices rose 0.7% each, snapping a 3-day losing streak. Sensex settled at 65721, up 480 points while Nifty added 135 points to finish at 19517. Nifty mid-cap and small-cap indices gained 0.8% each, building on yesterday's marginal gains. Nifty IT and Private Bank indices climbed 1.6% and 1.2% respectively, becoming top gainers among the sectoral indices, while PSU Bank and Auto indices were the top losers, down 0.7% and 0.3% respectively.

 

FIIs net sold stocks worth Rs 556 cr but net bought index futures and stock futures worth Rs 1105 cr and 1954 cr respectively. DIIs were net buyers to the tune of Rs 367 cr.

 

Rupee depreciated 12 paise to end at 82.84/$.

 

For the week, Sensex and Nifty fell two third of a percent each, extending the losing streak to second consecutive week.

 

Britannia reported a weak set of first quarter numbers as volume growth was flat while revenue and profit both missed estimates. SBI reported an operationally weak first quarter as domestics Net Interest Margin sees highest decline in 6 years.

 

OUTLOOK

 

Today morning, Hang Seng is up 0.2% while Nikkei and Shanghai are down 0.3% and 0.6% respectively. GIFT Nifty is suggesting a marginally higher start for our market.

 

In Friday's report we had said that 19286, the low made Thursday, was the immediate support, while 19650-19700 was the immediate resistance zone.

 

Nifty rose to touch a high of 19538 before closing at 19517.

 

19296, the low made last week, is the immediate support, upon breach of which, 19160 and 18934, the 61.8% and 78.6% retracement levels of the 18646-19991 upmove seen since 26th June, would be next downside levels to eye. On the way up, 19650-19700 is the immediate resistance zone, above which, 19800-19870 would be next target area.

 

For Banknifty, 44279, the low made during the week, also coincided with the lower band of daily Bollinger band and hence is the immediate support, below which, 44000, the 78.6% retracement level of the 43345-46370 upmove seen since 20th June, would be next downside level to eye. If 44000 also gives way, 43345 bottom might be retested. On the way up, 45300 is the immediate hurdle on the hourly chart, above which, 45782, the top made during the week, would be next upside level to eye.

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