DOW BREAKS SEVEN DAY-LOSING STREAK; KEY EARNINGS IN FOCUS AT HOME

DOW BREAKS SEVEN DAY-LOSING STREAK; KEY EARNINGS IN FOCUS AT HOME

WORLD MARKETS                             

US indices soared 1.2%-1.4%, with the Dow snapping a seven-day losing streak as a recovery in oil prices and news that Warren Buffett's Berkshire Hathaway agreed to buy aerospace and energy equipment maker Precision Castparts boosted investor sentiment.

Weakness in the dollar and a refinery outage helped oil trade higher. Brent climbed $1.78 to $50.39 a barrel, after touching a more-than-six-month low of $48.26 earlier in the session. U.S. crude settled up $1.09, or 2.5% percent, at $44.96 a barrel, after earlier falling to $43.35, a near five-month low.

Initial fall in the oil was on the back of disappointing data from China where exports fell 8.3% in July, their largest decline in 4 months, while the regional producer price index fell more than expected. The Shanghai composite surged nearly 5% to a two-week high amid hopes of further stimulus and corporate restructuring in key sectors.

Dollar index fell about half a percent, with the euro climbing above $1.10 for the first time in more than a week. Gold gained $10 to $1104 an ounce, its highest level since June 21.

European markets gained 0.3%-1.2% with Spain and Italy leading the tally on reports that Greece's negotiations with international creditors over a new bailout, worth 86 billion euros ($94 billion), could conclude on Tuesday.

AT HOME

After rising two third of a percent in the first hour or so, benchmark indices traded in a narrow range for better part of the day but saw a steep fall in last half an hour to end lower by half a percent. Sensex settled at 28102, down 135 points while Nifty lost 39 points to finish at 8526. BSE mid-cap and small-cap indices lost 0.02% and 0.4% respectively. Except a 0.8% rise in BSE Realty index, all the sectoral indices ended in red with Metal and Oil & Gas indices leading the tally, down 1% and 0.9% respectively.

FIIs net sold stocks and stock futures worth Rs 14 cr and 426 cr respectively but net bought index futures worth Rs 613 cr. DIIs were net sellers to the tune of Rs 50 cr.

Rupee depreciated 6 paise to end at 63.87/$.

The contentious land acquisition bill will not come to Parliament before the Winter Session, with the Joint Committee of Parliament examining the measure yesterday deciding to seek more time to finalise its report after Congress and TMC sought more time to study certain clauses.

OUTLOOK

Today morning Asian markets are trading with gains of upto a percent and SGX Nifty is suggesting about 15 points higher opening for our market.

In yesterday's report we had mentioned that 8500, the 38.2% retracement level of the recent 8322-8606 upmove, is the immediate support, with the stop loss of which trading longs can be held on to.

Nifty, after touching a high of 8622 in the morning trade, plunged sharply in the late noon trade to touch a low of 8498 before closing at 8526.

8498, the low made yesterday, is the immediate support, a breach of which can take the benchmark to around 8435, which is the 61.8% retracement level of the 8322-8622 upmove.

Traders are advised to exit trading longs if 8498 is breached.

SBI, Tata Steel and Sun Pharma will report their quarterly earnings today.