DOW FALLS FOR THE SIXTH DAY; US JOBS DATA IN FOCUS

DOW FALLS FOR THE SIXTH DAY; US JOBS DATA IN FOCUS

WORLD MARKETS                             

Dow and S & P 500 fell 0.7% each and Nasdaq plunged 1.6% yesterday, with the Dow extending the losing streak to sixth day and closing at its lowest in 6 months, as decline in oil and disappointing earnings weighed on the sentiment.

Health care was the worst sector performer, falling more than 2% as biotechs plunged. Viacom and 21st Century Fox plunged 14% and 6.4% respectively, joining Disney in a post-earnings stock decline.

Nymex oil fell 49 cents or 1.09% to $44.66 a barrel. Brent dipped below $48 a barrel.

Initial jobless claims came in at 270,000, slightly below expectations. U.S. job cuts in July exceeded 100,000 for the first time in nearly four years as the military announced plans to reduce troop and civilian workforce payrolls.

European markets lost upto 0.4%. Greek stocks rebounded to close up 3.7% in their fourth day of trade after re-opening.

AT HOME

Benchmark indices gained a fourth of a percent, closing in green for the sixth day in last seven sessions. Sensex settled at 28298, up 75 points while Nifty rose 21 points to finish at 8589. BSE mid-cap index gained 0.4% while the small-cap index lost 0.1%.

BSE Consumer Durable and Capital Goods indices climbed 1.9% and 1.7% respectively, becoming top gainers among the sectoral indices while FMCG and Metal indices were the top losers, down 1.1% and 0.6% respectively.

FIIs net bought stocks and index futures worth Rs 109 cr and 266 cr respectively but net sold stock futures worth Rs 50 cr. DIIs were net sellers to the tune of Rs 112 cr.

Rupee depreciated 2 paise to end at 63.765/$.

OUTLOOK

Today morning Shanghai and Hang Seng are in green while other Asian markets are trading with cuts of upto half a percent. SGX Nifty is suggesting about 35 points lower opening for our market.

Ever since Nifty crossed the immediate hurdle of 8450, we have been advising holding on to trading longs with a trailing stop loss for the target of 8655, the top made on 23rd July. Nifty yesterday touched a high of 8606 before closing at 8589.

We continue to maintain the view. Immediate support on the hourly chart has now moved up to 8515, with the stop loss of which trading longs can be held on to.

Tata Motors, M & M, BHEL and Grasim will report their quarterly earnings today.

Key data to watch out today would be the US nonfarm paryroll data where expectation is of addition of 223,000 jobs with unemployment unchanged at 5.3%.