NIFTY BOUNCES BACK FROM 7582 SUPPORT; RBI IN FOCUS TODAY
WORLD MARKETS
US indices gained between 0.5%-0.7% yesterday with Dow snapping a 4-day losing streak as news that Portugal will bail out troubled Banco Espirito Santo lifted sentiment over the country's financial health.
Dow was also boosted by a 2.6% rise in Berkshire Hathway on upbeat earnings.
European markets ended mixed with modest changes. June producer price index for the euro zone showed a rise for the first time this year.
Nymex crude rose 0.4% to $98.3 a barrel; Gold fell $6 to $1288 an ounce.
AT HOME
After two days of drubbing, bulls came back with a vengeance as benchmark indices soared a percent in yesterday's trade. Sensex gained 242 points to settle at 25723 while Nifty finished at 7684, up 81 points. BSE mid-cap and small-cap indices gained 0.9% and 1.1% respectively. Except a 0.1% cut in BSE Healthcare index, all other sectoral indices ended higher with Consumer Durable and IT indices leading the tally, rising 3.2% and 2.1% respectively.
FIIs net bought stocks, index futures and stock futures worth Rs 373 cr, 290 cr and 729 cr respectively. DIIs were net sellers to the tune of Rs 251 cr.
Rupee appreciated 25 paise to close at 60.93/$.
OUTLOOK
China's HSBC services PMI for July has come in at 50, down from 53.1 in June.
Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.
Key event to watch out today would be RBI's bi-monthly monetary policy review. While the apex bank is expected to keep the key repo rate on hold at 8%, there are some expectations of a cut in SLR as a liquidity enhancement measure. Markets would closely watch for revisions to governor Rajan's inflation projection, the tone of his forward guidance and his assessment of the fiscal deficit and food inflation.
After nearly achieving the downside target of 7582 on Friday, Nifty bounced back smartly in yesterday's trade to close at 7684. However, as mentioned in yesterday's report, 7750 is the immediate resistance, a crossover of which is required to generate a buy signal on the hourly chart.
India's HSBC Services PMI for July will be released today.
Hero Motocorp will report its quarterly earnings today.
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