NIFTY CONSOLIDATES HEADY GAINS; 8400 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY CONSOLIDATES HEADY GAINS; 8400 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

Dow gained 0.1%, S & P 500 ended flat while Nasdaq lost a third of a percent yesterday.

WTI crude fell 4.4% or $2.05 to a two-month low of $44.75 a barrel after data showed US crude stocks fall by 2.54 million last week and a build of 1.2 million gasoline barrels. Brent fell $2.21 or 4.6% to $46.26 a barrel.

U.S. import prices for June rose 0.2%, missing estimates, while export prices gained 0.8%. The Federal Reserve released the latest edition of its Beige Book, which said economic activity in most regions increased at a modest pace.

Dollar index fell about 0.2%. Gold rose $8 to $1344 an ounce.

European markets, except a marginally higher France, ended with cuts of 0.2%-1.2%.

AT HOME

It was time to consolidate hefty gains made over last two days as benchmark indices ended flat after a rangebound but choppy session. Sensex added 7 points to settle at 27815 while Nifty lost 2 points to finish at 8520. BSE mid-cap and small-cap indices however fell 0.6% and 0.8% respectively. BSE Metal and IT indices were the top gainers among the sectoral indices, rising 1.8% and 1% respectively while Realty index plunged 2.1%, becoming top loser, followed by 0.9% cut in Power index.

FIIs net bought stocks, index futures and stock futures worth Rs 291 cr, 673 cr and 154 cr respectively. DIIs were net sellers to the tune of Rs 655 cr.

Rupee appreciated 13 paise to end at 67.05/$.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

Nifty touched a high of 8550 before closing at 8520, moving one step forward towards the 8655 target we have been working with ever since 8243, the 61.8% retracement level of the entire 9119-6826 fall was taken out on weekly basis.

8655 continues to be upside target to eye and hold on to trading longs with a trailing stop loss continues to be the advise. Immediate support on the hourly chart continues to be around 8400, which should serve as that stop loss.

Tech major TCS will report its quarterly earnings today. Dollar revenue is seen rising 3.8% q-o-q to USD 4367 mn. In rupee terms while revenue is expected to increase 3% to Rs 29300 cr, net profit is likely to fall 4.7% to Rs 6038 cr. EBIT is likely to fall 2.4% to Rs 7236 cr and margin may contract 135 bps to 24.7%.

June WPI will come out today and is expected at 1.15% as against 0.79% in May.

Bank of England, in its policy meeting today, is expected to cut interest rate by 25 bps.