11340-11495 CONTINUES TO BE IMMEDIATE RANGE

11340-11495 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices fell 0.5%-1.2% with technology stocks leading the losses after a disappointing quarterly report from Chinese tech giant Tencent. Lingering worries about Turkey's financial situation, continued strength in the U.S. dollar, a sell-off in copper and broad weakness in emerging markets also weighed on the sentiment.

A Turkish regulator said it was limiting banks' currency swap transactions.

Dollar traded near its highest level in a year. Copper hit its lowest level in more than a year.

The iShares MSCI Emerging Markets ETF dropped 3% and is now down more than 20% from its 52-week high. The iShares MSCI China ETF dropped 3.7% as the Chinese yuan hit its lowest level against the dollar since January 2017.

European markets fell 0.3%-1.6%. Basic resources stocks fell the most.

                                       

WTI oil fell 3% to $65.01, its lowest close since June 06 and Brent fell $1.38 or 2.3% to $70.78 after data showed a big, unexpected jump in stockpiles of U.S. crude.

AT HOME

Sensex and Nifty gained 0.6% and 0.7% respectively to break 2-day losing streak. Sensex added 207 points to settle at 37852 while Nifty finished at 11435, up 79 points. BSE mid-cap and small-cap indices climbed 0.9% and 0.5% respectively. BSE Healthcare index soared 2.5%, becoming top gainer among the sectoral indices, followed by 1.8% higher Realty index. Capital Goods and Telecom indices were the top losers, down 0.5% and 0.3% respectively.

FIIs net sold stocks and index futures worth Rs 379 cr and 711 cr respectively but net bought stock futures worth Rs 64 cr. DIIs were net buyers to the tune of Rs 391 cr.

Rupee, after breaching 70 mark for the first time, recovered to end 4 paise stronger at 69.89/$.

India's trade deficit widened to a 5-year high of $18.02 billion in July, up from $16.61 in June. Exports rose 14.32% to USD 25.77 bn while imports surged 28.81% to USD 43.79 bn.

Sun Pharma posted a net profit of Rs 983 cr for June quarter as against a loss of Rs 425 cr in the same quarter last year. Revenue rose 16% to Rs 7224 cr. EBITDA surged 46.6% to Rs 1605 cr and margins expanded from 17.6% to 22.2%.

OUTLOOK

Today morning, Shanghai and Hang Seng are down 1.8% and 1.3% respectively and Nikkei is off 0.7%. SGX Nifty is trading around 11410, suggesting about 50 points lower start when compared to Tuesday's close of Nifty futures.

In Tuesday's report we had said that "A breach of 11340, the low made yesterday, would confirm a "sell" on the hourly chart and would pave the way for further correction". We had also said that "11495, the top made last week, is the immediate resistance".

Nifty, on Tuesday, rose 79 points to end at 11435 but is set to open below 11400 today.

11340, the low made on Monday, continues to be immediate support, below which 11235, the low made on 2nd August, would be the next support to eye.

11495 continues to be immediate hurdle.