10115-9928 CONTINUES TO BE IMMEDIATE RANGE

10115-9928 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS                             

Dow gained 0.3% while S & P 500 and Nasdaq fell 0.1% and 0.4% respectively. Dow was aided by Goldman Sachs, Boeing and Home Depot while materials and information technology lagged, pressuring S & P 500 and Nasdaq.

The White House saw a major shake-up after John Kelly replaced Reince Priebus as President Trump's chief of staff.

Pending home sales rose 1.5% in June. U.S. Treasury yields rose slightly, with the benchmark 10-year yield trading at 2.292% and the two-year yield around 1.351%.

WTI crude rose 46 cents or 1% to $50.17 on possibility of U.S. sanctions against Venezuela's oil sector after a controversial election on Sunday.

The euro soared to a two-and-a-half year high against the dollar  after Eurozone core inflation edged up to 1.3%, a four-year high, from 1.2% in June, contrary to market expectations of a slight drop to 1.1%.

In Europe, Italy gained 0.3%, FTSE ended a tad higher but DAX and CAC fell 0.4% and 0.7% respectively. Germany said it was open to class action lawsuits against carmakers.

Earlier, data from China showed official PMI for July stood at 51.4, lower than the 51.6 forecast.

AT HOME

Benchmark indices gained about six tenth of a percent to make a fresh record high on closing basis. Sensex added 205 points to settle at 32515 while Nifty finished at 10077, up 63 points. BSE mid-cap and small-cap indices gained 0.4% and 0.1% respectively. BSE Consumer Durable and Metal indices climbed 1.9% and 1.7% respectively, becoming top gainers among the sectoral indices while Healthcare and FMCG indices were the top losers, down 1.5% and 1% respectively.

FIIs net sold stocks and index futures worth Rs 1197 cr and 426 cr respectively but net bought stock futures worth Rs 202 cr. DIIs were net buyers to the tune of Rs 1768 cr.

Rupee depreciated 4 paise to end at 64.19/$.

India's core sector growth slowed to 0.4% in June due to contraction in output of coal, refinery products, fertiliser and cement.

Tech Mahindra earnings beat expectations on all parameters. Dollar revenue rose 0.6% to USD 1138 mn. Net profit surged 36% to Rs 799 cr and revenue fell 2.1% to Rs 7336 cr. EBIT rose 11.8% to Rs 688 cr and margin expanded by 120 bps to 9.4%.

OUTLOOK

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

In yesterday's report we had mentioned that 9928, the erstwhile resistance, would now act as the important immediate support and 10115, the top made last week, is the immediate hurdle.

Nifty rose 63 points yesterday to end at 10077, holding on to this range.

9928-10115 continues to be relevant range, a crossover of which, on either side, is required for a fresh directional view. Above 10115, next target would be about 10300.

JSW Steel and Marico will report their quarterly earnings today.

RBI begins it’s two-day policy meeting today.