11235 BELOW 11340; 11495 CONTINUES TO BE IMMEDIATE HURDLE

11235 BELOW 11340; 11495 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

US indices fell 0.2%-0.5%, with the Dow and S & P 500 extending the losing streak to fourth straight day, on the back of ongoing Turkey crisis.

Turkish shares dropped 11% after already falling more than 14% on Friday. Turkey's central bank tried to assuage market fears, stating it will provide as much liquidity as needed to the country's banks. Lira pared losses to trade at 6.86 after touching a low of 7.20 earlier in the session.

Energy stocks fell as US crude fell 43 cents to settle at seven-week low of $67.20.

European markets fell upto 0.8%

AT HOME

Benchmark indices fell about six tenth of a percent to extend the losing streak to second straight day. Sensex lost 224 points to settle at 37645 while Nifty finished at 11355, down 74 points. BSE mid-cap and small-cap indices fell 0.7% and 0.8% respectively. BSE Oil & Gas and Energy indices tumbled 1.9% and 1.7% respectively, becoming top losers among the sectoral indices while IT index climbed 1.2%, becoming to gainer, followed by 0.8% higher Teck index.

FIIs net sold stocks and index futures worth Rs 972 cr and 722 cr respectively but net bought stock futures worth Rs 479 cr. DIIs were net buyers to the tune of RS 216 cr.

Rupee plunged 1.56% to end at 69.93/$, marking its steepest fall since 3rd September 2013 and hitting a record low.

Retail inflation hit a nine-month low of 4.17% in July as against 4.92% in June. Core CPI however remained elevated at 6.3% vs 6.4% in June.

Tata Steel reported 113% y-o-y rise in consolidated net profit at Rs 1954 cr. Revenue rose 27.5% to Rs 37833 cr. EBITDA rose 30% to Rs 6468 cr and operating margin expanded to 17.1%. Consolidated volumes were up 12.4% and ebitda/tonne stood at Rs 9874.

OUTLOOK

Today morning, Nikkei is up more than a percent while Hang Seng and Shanghai are down half a percent each. SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 11360, the bottom made last week, is the immediate support, Upon breach of 11360, 11235, the bottom made on 2nd August, will be the next support to eye.

Nifty, after touching a low of 11340 in first hour, closed at 11355 and is set to open flat today.

A breach of 11340, the low made yesterday, would confirm a "sell" on the hourly chart and would pave the way for further correction. 11235, the bottom made on 2nd August, would be the next support to eye if that happens.

11495, the top made last week, is the immediate resistance.

Sun Parma will report its quarterly earnings today.