NIFTY BREAKS 4-DAY LOSING STREAK; 8635 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY BREAKS 4-DAY LOSING STREAK; 8635 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS                             

Dow and S & P 500 ended near zero line while Nasdaq gained 0.1% yesterday ahead of Friday's jobs report.

US oil rose 2.7% to $41.93 a barrel, extending previous day's 3% upmove.

In economic data, weekly jobless claims came in slightly above expectations. U.S. factory orders for June fell 1.5 percent, less than expected.

European markets gained 0.6%-1.6% with FTSE leading the tally after the Bank of England cut the U.K.'s key interest rate to a record low of 0.25% and also increased its government bond-buying program by £60 billion to £435 billion. This was the first rate cut by the BoE since 2009. The pound tumbled from levels above $1.330 to levels below $1.316 after the decision.

AT HOME

Benchmark indices managed to end marginally higher after a choppy trade, nevertheless breaking the four-day losing streak. Sensex settled at 27714, up 17 points while added 6 points to finish at 8551. BSE mid-cap and small-cap indices gained 0.4% each. NSE Realty index climbed 2.2%, becoming top gainer among the sectoral indices, followed by 1.7% rise in Metal index. Media and IT indices were the top losers, down 0.5% and 0.3% respectively.

FIIs net bought stocks and index futures worth Rs 559 cr and 711 cr respectively but net sold stock futures worth Rs 196 cr. DIIs were net sellers to the tune of Rs 527 cr.

Rupee appreciated 8 paise to end at 66.91/$.

OUTLOOK

Today morning, except a marginally lower Shanghai, other Asian markets are trading with modest gains and SGX Nifty is suggesting about 40 points higher start for our market.

After Nifty broke the immediate support of 8590, we have been working with the downside target of 8475-8490. Yesterday, after touching a low of 8518, the benchmark bounced back to end at 8551 and is set to open closer to 8600 today.

8635 continues to be the immediate hurdle, a crossover of which is required to generate a buy on the hourly chart. Traders are advised to keep a stop loss of 8635 in long positions.

Key data to eye would be the US non-farm payroll for July, which is expected to show an addition of 180000 jobs.