NIFTY HOLDS 9825 SUPPORT ON CLOSING BASIS; EXIT LONGS BELOW 9792

NIFTY HOLDS 9825 SUPPORT ON CLOSING BASIS; EXIT LONGS BELOW 9792

WORLD MARKETS                             

Dow fell a fourth of a percent while S & P 500 and Nasdaq gained 0.1% and 0.5% yesterday. Nasdaq hit a record intraday and closing high and extended its winning streak to eight straight day.

Netflix soared 13% to an all-time high after the company said it added 5.2 million total memberships during its second quarter. Facebook also hit a record intraday high. Goldman Sachs and Bank of America on the other hand fell despite exceeding expectations on top and bottom-line as bond trading revenue fell sharply.

Two more Republican senators announced that they would oppose the current Republican health care bill. Following the news, Senate Majority Leader called for a vote to repeal Obamacare without an immediate replacement. The inability to enact health-care reforms in the U.S. has led to questions about Trump's ability of tax reforms in the near future.

Dollar index fell about half a percent to a 10-month low of 94.45. The benchmark 10-year note yield slipped to 2.27%, while the two-year yield hovered around 1.35%.

European markets fell 0.2%-1.2%

Earlier, in China, the technology-heavy index ChiNext plunged 5.1% to close at its lowest since 2015 after renewed calls for stronger regulation.

AT HOME

Dragged down by ITC, benchmark indices plunged nearly a percent, marking the biggest single day fall since 2nd December, 2016 and 18th May 2017 for Sensex and Nifty respectively. Sensex tumbled 364 points to settle at 31711 while Nifty finished at 9827, down 89 points. BSE mid-cap and small-cap indices lost 0.6% each. BSE FMCG index nosedived 6.1%, becoming top loser among the sectoral indices, followed by 1.1% lower Realty and Energy indices. IT, Teck and Healthcare indices were the top gainers, up 0.2% each.

FIIs net bought stocks and index futures worth Rs 317 cr and 325 cr respectively but net sold stock futures worth Rs 1372 cr. DIIs were net sellers to the tune of Rs 975 cr.

Rupee appreciated 3 paise to end at 64.32/$.

HUL reported better-than-expected 8.5% y-o-y rise in June quarter net profit at Rs 1283 cr. Revenue rose 4.8% to Rs 9222 cr. Operating profit at Rs 1866 cr and margin at 21.9% too were better than expectation. Underlying volume growth was flat on expected lines.

Ultratech reported 15% y-o-y rise in standalone net profit at Rs 891 cr for the June quarter. Revenue rose 6% to Rs 7520 cr. Operating profit grew by 9.7% to Rs 1560 cr and margin expanded by 70 bps to 23.5%. Sales volume was flat at 13.5 mt.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 20 points higher start for our market.

Yesterday, Nifty, on the back of big gap-down opening in ITC, touched a low of 9792 in the initial trade and finally settled at 9827, barely holding the 9825 support we had mentioned in yesterday's report.

9792, the bottom made yesterday, is now the immediate support to eye, a breach of which will confirm a sell on the hourly chart and would pave the way for further correction. 34-DMA, placed around 9660, would be the next important support if that happens.

Traders are advised to keep a stop-loss of 9792 in trading longs.