NIFTY RETREATS FROM 11500 HURDLE; 11360 IS THE IMMEDIATE SUPPORT

NIFTY RETREATS FROM 11500 HURDLE; 11360 IS THE IMMEDIATE SUPPORT

WORLD MARKETS

US indices fell 0.7%-0.8% as financial crisis in Turkey spooked global markets.

Turkish lira briefly plunged 20% to a record low after Trump authorized the doubling of metals tariffs on Turkey. Turkish stocks also fell with the iShares MSCI Turkey ETF down 14.5%. The drop came after a Turkish delegation returned from Washington with no apparent progress being made on the detention of an American pastor detained in Turkey in 2016. Turkish authorities accuse Brunson of supporting a failed coup attempt earlier that year.

US Consumer Price Index rose 0.2% last month and "core CPI" hit 2.4%, marking its biggest jump since September of 2008.

US treasury prices rose with the benchmark 10-year yield down to 2.875% while the two-year yield slipped to 2.61%.

WTI crude rose 82 cents, or 1.2% to $67.63 a barrel and Benchmark Brent crude oil was up 72 cents, or 1%, at $72.79 a barrel.

European markets tumbled 1%-2.5%. Euro dropped sharply against the dollar, following reports that the ECB is concerned over the impact of a weak Turkish lira on European lenders. U.K. economy grew 0.4% in the second-quarter of the year.

For the week, Nasdaq gained 0.4% but Dow and S & P 500 fell 0.6% and 0.25% respectively. In Europe, FTSE was up 0.1% but DAX and CAC tumbled 1.5% and 1.2% respectively. In Asia, while Nikkei fell 1%, Hang Seng and Shanghai surged 2.5% and 2% respectively.

For the week, U.S. crude dropped more than 1%, posting its sixth straight weekly loss for its worst losing streak since August 2015. Brent was down roughly half a percent.

AT HOME

Benchmark indices fell four tenth of a percent on the last day of the week. Sensex lost 155 points to settle at 37869 while Nifty finished at 11429, down 41 points. BSE mid-cap and small-cap indices tumbled 0.8% each. BSE Metal and Basic Material indices tumbled 2% and 1.6% respectively, becoming top losers among the sectoral indices while Consumer Durable and IT indices were the top gainers, up 0.8% and 0.5% respectively.

FIIs bet sold stocks and index futures worth Rs 511 cr and 223 cr respectively but net bought stock futures worth Rs 105 cr. DIIs were net buyers to the tune of Rs 458 cr.

Rupee depreciated 15 paise to end at 68.82/$.

India's factory output growth stood at five month high of 7% in June, up from 3.93% in May.

For the week, Sensex and Nifty gained 0.8% and 0.6% respectively, extending winning streak to third straight week.

SBI reported mixed set of results. The bank posted a net loss of Rs 4876 cr for the June quarter on account of higher provisions and treasury losses. Provisions jumped 115% y-o-y to Rs 19228 cr but fell 31.5% q-o-q. NII grew 23.8% to Rs 21729 cr. Gross NPA as a percentage of total loans improved to 10.69% from 10.91% q-o-q while net NPA ratio fell to 5.29% from 5.73%. Gross slippages for the quarter fell to Rs 14349 cr, down from Rs 32821 cr q-o-q. Slippages outside watchlist were elevated at Rs 11000 cr plus levels. Loan growth stood at 5.5%.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.9%-1.5% and SGX Nifty is suggesting about 50 points lower start for our market.

Readers would recall that after Nifty took out 11430 hurdle, we had given 11500-15550 as the next target zone. The benchmark, after touching a high of 11495 on Thursday, eased to end at 11430 on Friday and is set to open below 11400 today.

11360, the bottom made last week, which also coincides with a trendline adjoining recent bottoms on the daily chart, is the immediate support to eye. Upon breach of 11360, 11235, the bottom made on 2nd August, will be the next support to eye.

11495 is the immediate hurdle above which 11550-11600 would be the next target zone.

Traders are advised to keep sl of 11360 in long positions.

Tata Steel will report its quarterly earnings today.