10115-9928 IS THE IMMEDIATE RANGE

10115-9928 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

Dow gained 0.2% while S & P 500 and Nasdaq lost 0.1% each of Friday.

U.S. economy grew at an annualized rate of 2.6% in the quarter ended June. While the reading met expectations, the 1.9% growth recorded in the first half of the year suggested it was unlikely that full-year growth would exceed 2.5%. Consumer sentiment for July topped expectations at 93.4.

Dollar index slipped nearly two-third of a percent to 93.34 following GDP data.

Amazon.com shares fell as more than 4% on the back of much weaker-than-expected quarterly results.

European markets lost 0.4%-1%. Euro zone economic confidence surged to a 10-year high in July. Spanish gross domestic product (GDP) rose by 0.9% in the second quarter of the year. French GDP rose 0.5% while the U.K.'s GDP inched 0.3% higher over the same period.

For the week, S & P 500 and Nasdaq ended slightly lower while Dow rose 1%. In Europe, FTSE and DAX fell 1.1% and 0.6% respectively but CAC was up 0.3%. In Asia, Hang Seng and Shanghai added 1% and 0.5% respectively but Nikkei fell 0.7%.

North Korea test launched a projectile on Friday. In response, the U.S. flew two B-1B bombers over the peninsula and urged countries in the region to do more to tackle the issue.

AT HOME

After falling about three fourth of a percent, benchmark indices recouped most of the losses in the late noon trade to end just marginally lower. Sensex settled at 32310, down 73 points while Nifty lost 6 points to finish at 10014. BSE mid-cap and small-cap indices however gained 0.5%and 0.4% respectively. BSE Healthcare and Metal indices tumbled 1.7% and 1.4% respectively, becoming top losers among the sectoral indices while IT and Teck indices were the top gainers, up 1% and 0.8% respectively.

FIIs net sold stocks and index futures worth Rs 223 cr and 1744 cr but net bought stock futures worth Rs 150 cr. DIIs were net buyers to the tune of Rs 425 cr.

Rupee depreciated 4 paise to end at 64.15/$.

For the week, Sensex and Nifty gained 0.9% and 1% respectively, extending the winning streak to fourth straight week.

L & T reported better-than-expected revenue and net profit while margin was a miss. Net profit rose 24.4% to Rs 1066 cr. Revenue rose 9.7% to Rs 23990 cr. EBIDTA rose 9% to Rs 2057 cr and margin contracted 6 bps to 8.6%. The company won new orders worth Rs. 26,352 during the quarter. Consolidated order book, at the end of quarter, stood at Rs. 2,62,860 crore, marginally higher by 2% yoy. Company maintained full year guidance of revenue, margin and order inflow growth.

OUTLOOK

China's July manufacturing PMI has come in at 51.4, down from 51.7 in June.

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

In Friday's report we had mentioned that immediate support on the hourly chart of Nifty had moved to 9960, a sustained trading below which will confirm a "sell" on the hourly chart.

Nifty, while touched a low of 9945, didn't sustain there and rebounded to close at 10014.

9945 also roughly coincides with the previous hurdle of 9928 which makes 9945-9928 an important immediate support to eye. Below 9928, 9792, the bottom made in mid-July, would be the next important support to eye.

10115, the top made last week, is the important immediate hurdle, a crossover of which is required for a fresh upmove.

Tech Mahindra will report its quarterly earnings today.