MID, SMALL CAPS PARTY WHILE NIFTY CONSOLIDATES

MID, SMALL CAPS PARTY WHILE NIFTY CONSOLIDATES

WORLD MARKETS                             

US indices ended lower by about a fourth of a percent amidst further decline in Apple, slight recovery in oil prices and continued focus on the timing of a rate hike.

Atlanta Fed President Dennis Lockhart, a voting member, told the Wall Street Journal that the economy appears ready for a rate hike in September.

Apple closed down 3.2%, plunging below its 200-day moving average, on concerns over its's ability to sustain market leadership and negative impacts from China.

June factory orders showed an increase of 1.8%, mostly in-line with expectations.

Nymex oil rose 57 cents to $45.74 a barrel. Dollar index rose about half a percent. US 10-year yield rose to 2.23%.

European markets, except a 0.1% higher DAX, ended with cuts of upto a percent, with Italy and Spain leading the fall.

AT HOME

After plunging more than a percent in the first half, benchmark indices recouped two third of the losses in the second half to end lower by nearly a third of a percent. Sensex settled at 28072, down 115 points while Nifty lost 26 points to finish at 8517. BSE mid-cap and small-cap indices however soared 1.1% and 0.7% respectively. BSE Metal index galloped 2.7%, becoming top gainer among the sectoral indices, followed by 1% rise in Auto index. Consumer Durable and Oil & Gas indices were the top losers, down 0.8% and 0.7% respectively.

FIIs net bought stocks and stock futures worth Rs 119 cr and 850 cr respectively but net sold index futures worth Rs 231 cr. DIIs were net sellers to the tune of Rs 113 cr.

Rupee appreciated 29 paise to end at 63.74/$.

RBI, in its bi-monthly policy review, left key rates unchanged as expected. It however trimmed consumer inflation forecast for January-March quarter by 0.2%.

Bharti Airtel reported better-than-expected 23.8% q-o-q rise in quarterly net profit at Rs 1554 cr. Revenue grew by 2.8% to Rs 23671 cr. Operating margin however dipped 10 bps to 34.9%, the expected figure being 35.2%. ARPU remained unchanged at Rs 198.

OUTLOOK

China's July Caixin Services PMI has come in at 53.8 Vs 51.8 in June, marking the highest reading since August 14.

Asian markets are trading flat to modestly lower and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had mentioned that immediate support on the hourly chart is placed at 8430, with the sop loss of which trading longs can be held on to. Nifty after, touching a low of 8448, recovered to end at 8517.

8430 continues to be important immediate support as 200 DMA and 34 DMAs are also placed in the vicinity of the same. Therefore, we reiterate the advise of holding on to trading longs with the stop loss of same.

On the way up, 8655, the top made on 23rd July, continues to be the target to eye.