10550 ABOVE 10390; 11235 IMMEDIATE SUPPORT

10550 ABOVE 10390; 11235 IMMEDIATE SUPPORT

WORLD MARKETS

US indices, led by gain in Apple and IBM, rose 0.1%-0.5% on Friday, after digesting newly proposed tariffs on U.S. goods by China and fresh jobs data.

The U.S. economy added 157,000 jobs in July, lower than the expected gain of 190,000.  However, jobs growth for June was revised up to 248,000 from 213,000, while wages grew by 2.7% in July on a y-o-y basis, meeting expectations and unemployment fell a tenth of a percentage point to 3.9%.

U.S. trade deficit surged 7.3% to $46.3 bn, its biggest increase in more than 1-1/2 years in June as the boost to exports from soybean shipments faded and higher oil prices lifted the import bill.

China said it will slap tariffs on $60 billion in U.S. goods, with charges ranging from 5-25%.

US crude fell 47 cents to settle at $68.49/bbl as trade tensions weighed on the market. Brent fell 31 cents to $73.14.

European markets climbed 0.4%-1.1%. Euro zone retail sales grew 0.3% month on month and 1.2% y-o-y June. Sterling briefly fell below $1.30 on after Bank of England Governor Mark Carney said in an interview that there was an "uncomfortably high" risk of a no-Brexit deal.

For the week, Dow ended just marginally higher while S & P 500 and Nasdaq rose 0.8% and 1% respectively. In Europe, FTSE and CAC fell 0.6% each while DAX plunged 1.9%. In Asian Hang Seng and Shanghai nosedived 3.9% and 4.6% respectively while Nikkei was off 0.8%.

AT HOME

Benchmark indices soared 1% with Nifty at fresh record high on closing basis. Sensex soared 391 points to settle at 37556 while Nifty finished at 11360, up 116 points. BSE mid-cap and small-cap indices rose 0.9% and 1.2% respectively. All the BSE sectoral indices ended in green with Bankex leading the tally, up 1.6%, followed by 1.5% higher Consumer Durable and Metal indices.

FIIs net sold stocks, index futures and stock futures worth Rs 6 cr, 481 cr and 20 cr respectively. DIIs were net buyers to the tune of Rs 87 cr.

Rupee was trading at 68.60/$, appreciating 9 paise compared to previous close.

For the week, Sensex and Nifty gained 0.6% and 0.7% respectively.

OUTLOOK

Today morning, Nikkei and Shanghai are marginally in the green while Hang Seng is nearly a 1%. SGX Nifty is suggesting about 40 points higher start for our market.

In Friday's report we had said that having broken 10250 support, next support zone for Nifty is 11210-11185, where a gap, made by a gap up opening on 27th July, was placed.

Nifty however surged 116 points to settle at 11360 and is set to open higher today.

Upon crossover of 11390, the top made last week, 11550 would be the next target to eye.

11235, the low made last week, is the important immediate support to eye.

Adani Ports and Britannia will report their quarterly earnings today.