11591 CONTINUES TO BE IMMEDIATE SUPPORT; 11883 IMMEDIATE HURDLE

11591 CONTINUES TO BE IMMEDIATE SUPPORT; 11883 IMMEDIATE HURDLE

WORLD MARKETS

US indices gained 0.8%-1.1% following news that the U.S. temporarily eased restrictions on Chinese telecom giant Huawei.

The Commerce Department said it would allow Huawei to purchase American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets until Aug. 19. 

OECD released its growth outlook, projecting global economic growth of 3.2% in 2019, down 0.1% from its March forecast, and an unchanged 3.4% in 2020.

WTI crude fell 11 cents to $62.99 a barrel while Brent rose 6 cents to $72.03.

European markets gained 0.2%-0.8%. Streling surged after British Prime Minister offered lawmakers a vote on whether to have a second Brexit referendum if they approved her withdrawal deal.

AT HOME

Benchmark indices slipped a percent, giving back about a fourth of yesterday's mammoth upmove. Sensex settled at 38969, down 382 points while Nifty lost 119 points to finish at 11709. BSE mid-cap and small-cap indices fell 0.8% and 0.6% respectively. Except 0.6% and 0.2% higher Consumer Durable and Energy indices respectively, all the BSE sectoral indices ended in red, with Auto index leading the losses, down 2.6%, followed by 1.6% lower Telecom and Metal indices.

FIIs net bought stocks worth Rs 1185 cr but net sold index futures and stock futures worth Rs 86 cr and 884 cr respectively. DIIs were net sellers to the tune of Rs 1090 cr.

Rupee appreciated 3 paise to end at 69.71/$.

Tech Mahindra's numbers missed estimates. Dollar revenue grew just 0.5% q-o-q and EBIT margin fell to 15.4% from 16.1%.

OUTLOOK

Today morning, Shanghai is flat while Hang Seng and Nikkei are up 0.4% and 0.2% respectively. SGX Nifty is suggesting about 20 points higher start for our market.

In yesterday's report we had said that "11856 continues to be immediate hurdle to eye, upon crossover of which 11920 and 12010 would be next upside targets".

Nifty, after touching a high of 11883 in the initial trade, slipped to end at 11709, and is set to open higher today.

11883, the top made yesterday, is the immediate hurdle to eye, upon crossover of which, 11960 and 12035 would be next upside targets.

11591, the low made on Monday, continues to be immediate support, below which, 11426, the lower end of the gap created by Monday's gap up opening, would be the next support to eye.

Indusind Bank will report its quarterly earnings today.