Tuesday, August 7, 2018

10550 ABOVE 10428; 10235 CONTINUES TO BE IMMEDIATE SUPPORT


10550 ABOVE 10428; 10235 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.2%-0.6%, with Nasdaq on top, as Facebook surged 4.5%.

Berkshire Hathaway and Tyson Foods both report better-than-expected profits.

Earlier, Shanghai Composite ended lower by 1.3% as trade uncertainty dampened sentiment.

British pound slid after Britain's international trade minister Liam Fox said there was a 60% chance of Britain leaving the European Union without a deal.

European markets, except a marginally higher FTSE, ended with modest cuts. Basic resources sector slipped the most on the back of trade uncertainty.

AT HOME

After gaining more than half a percent in the initial trade, Sensex and Nifty indices gave nearly half of the gains through the session to end higher by 0.4% and 0.2% respectively. Sensex settled at 37692, up 136 points while Nifty added 26 points to finish at 11387. BSE mid-cap and small-cap indices gained 0.3% and 0.4% respectively. BSE Bankex and Telecom index soared 1.1% each, becoming top gainers among the sectoral indices while Realty and Healthcare indices fell 0.6% and 0.4% respectively, becoming top losers.

FIIs net bought stocks and stock futures worth Rs 249 cr and 349 cr respectively but net sold index futures worth Rs 146 cr. DIIs were net buyers to the tune of Rs 219 cr.

Rupee depreciated 28 paise to end at 68.88/%.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.4%-0.8% and SGX Nifty is suggesting about 20 points higher start for our market.

In yesterday's report we had said that "Upon crossover of 11390, the top made last week, 11550 would be the next target to eye". Nifty, after touching a high of 11428, slipped to end at 11387, but is set to open higher today.

11428, the top made yesterday, is the immediate hurdle, above which, 11550 would be the next target to eye.

11235, the bottom made last week, continues to be important immediate support.

M & M and PNB will report their quarterly earnings today.

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