ASIA OPENS HIGHER ON CHINESE DATA; 7740 IS THE IMMEDIATE SUPPORT FOR
NIFTY
WORLD MARKETS
US indices fell
between 0.5%-0.7% on Friday weighed by disappointing earnings in addition to
ongoing worries over geopolitical unrest.
Visa fell more than
4% on its lowered full-year revenue forecast. Amazon shares dropped as much as
11% on weak earnings.
Durable goods rose
more than expected in June, pointing to momentum in the economy.
U.S. intelligence
indicated that Russia could provide heavier and more sophisticated weaponry to
Ukrainian separatists at any moment, a Pentagon spokesman said on Friday. In
the Middle East, authorities in Gaza reported that 15 people were killed on
Thursday after Israeli forces shelled a shelter at a United Nations run school,
bringing the civilian death toll above 800.
European markets,
except a modestly higher Spain, fell between 0.4%-1.8% as concerns about the
impact of tougher sanctions against Russia weighed amid ongoing unrest in
Ukraine.
Media reports
suggested that the European Union had reached a preliminary agreement on
tougher economic sanctions against Russia after the downing of a Malaysian
jetliner in eastern Ukraine last week.
Also, widely
watched figures from the Ifo Institute showed German business-climate survey
fell to 108.0 in July, marking a third straight monthly decline and missing
expectations for 109.4. On the other hand UK second-quarter GDP came in at 0.8%
on the quarter, which met economists' expectations.
The Euro hit its lowest
level against the dollar since November.
AT HOME
Benchmark
indices tumbled half a percent in today's trade, breaking the eight day winning
streak. Sensex lost 145 point to settle at 26126 while Nifty finished at 7790,
down 40 points. BSE mid-cap and small-cap indices plunged 1.2% and 1.9%
respectively. Barring a 1.9% and 0.7% rise in BSE Healthcare and FMCG indices
respectively, all other sectoral indices ended in red with Realty and Metal
indices leading the tally, giving away 2.7% and 2.3% respectively.
FIIs net
bought Stocks and stock futures worth Rs 126 cr and 180 cr respectively but net
sold index futures worth Rs 81 cr. DIIs were net sellers to the tune of Rs 210
cr.
Rupee
appreciated 2 paise to close at 60.10/$.
For the
week, Sensex and Nifty gained 1.9% and 1.6% respectively.
OUTLOOK
Data over the
weekend showed China's industrial profits surged 18% in June. The gain outpaced
an 8.9% increase in May.
In Gaza, fighting
subsided on Sunday after Hamas Islamist militants said they backed a 24-hour
humanitarian truce in light of the Muslim holiday Eid al-Fitr.
Europe implemented
new sanctions against Russia, including adding more names of Russian
individuals to target and blocking Russian banks from accessing capital
markets.
Today morning Asian
markets are higher about half a percent and SGX Nifty is suggesting a flattish
start for our market.
The upward sloping
trendline adjoining two recent tops on the daily chart currently presents
resistance around 7900 and that is the immediate target on the way up.
On the downside,
immediate support on the hourly chart has moved up to 7740, which should serve
as the stop loss for trading longs.
LT and HUL will
report their quarterly earnings today.
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