8320-8480 IS THE IMMEDIATE RANGE

8320-8480 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

While Dow ended marginally higher, Nasdaq and S & P 500 lost 0.2% each yesterday as a fall in energy counters offset a rebound in July retail sales and easing concerns over the continued depreciation of the Chinese yuan.

Nymex oil fell 2.5% to trade below $42 per barrel for the first time since March 2009.

People's Bank of China attempted to reassure markets that it did not plan to continuously devalue the Chinese currency. In a press conference in Beijing, an official from the central bank said the country's strong economic environment, sustained trade surplus, sound fiscal position and deep foreign exchange reserves provided "strong support" for the exchange rate.

U.S. retail sales for July rose 0.6%, slightly above estimates, boosted by auto sales. June's retail sales were also revised up to show them unchanged instead of the previously reported 0.3% drop. Weekly jobless claims came in at 274,000, slightly above a consensus estimate of 270,000, while import prices fell 0.9% amid lower oil costs and a strong dollar. 

Gold fell 0.9% to $1115 an ounce.

European markets, except a marginally lower FTSE, gained 0.6%-1.6%

AT HOME

Benchmark indices ended marginally higher after a choppy trade, breaking the four-day losing streak. Sensex settled at 27550, up 37 points while Nifty finished at 8356, up 6 points. BSE mid-cap and small-cap indices however lost 0.2% and 0.8% respectively.    BSE Metal and Realty indices tumbled 2.8% and 1.4% respectively, becoming top losers among the sectoral indices while Healthcare index and Bankex were the top gainers, up 0.8% and 0.7% respectively.

FIIs net sold stocks and index futures worth Rs 626 cr and 236 cr respectively but net bought stock futures worth Rs 193 cr. DIIs were net buyers to the tune of Rs 546 cr.

Rupee plunged 33 paise to end at 65.10/$, the weakest level since September 2013.

In a setback for the government's reforms drive, the Parliament was yesterday adjourned sine die, without any of the key bills including GST being passed. However, still keen to ensure passage of GST bill, government is keeping open the option of reconvening the session with the Cabinet Committee on Parliamentary Affairs yesterday deciding not to recommend immediate prorogation of the Houses after they are adjourned sine die.

ONGC reported a miss on bottomline and operational front. Profit grew by 14.2% y-o-y to Rs 5460 cr. Net realisation stood at USD 58.92 a barrel, lower than the estimated 60 a barrel. Operating profit grew 19.4% to Rs 10582 cr, forecasted figure being Rs 12700 cr. Margin expanded by 580 bps to 46.4%.

OUTLOOK

Today morning Asian markets are trading flat to modestly higher and SGX Nifty is suggesting about 40 points higher opening for our market.

In yesterday's report we had reiterated that 8320 continues to be important support to eye, a close below which will break the higher-top higher-bottom formation on the daily chart.

Nifty, after touching a low of 8340, closed at 8356 and is set to open about 40 points higher today, giving more credence to 8320 support.

On the way up, 8450-8480 would be the immediate resistance area where 8450 is 200-DMA and 8480 is where 34-DMA is placed.

This makes 8320-8480 a no-trading zone, a crossover of which, on either side, is required for taking fresh view on Nifty.

India's WPI for July will be released today and is expected to show a reading of -2.76% as against -2.4% in June.

Cipla and Hindalco will report their quarterly earnings can today.