11000 IS THE NEXT SUPPORT; TRAIL STOP-LOSS TO 11267

11000 IS THE NEXT SUPPORT; TRAIL STOP-LOSS TO 11267

WORLD MARKETS

US indices fell 0.1%-0.3% after Trump's renewed attacks on China decreased hope of trade deal between the two largest world economies.

In a series of tweets Tuesday, Trump said that China is not keeping its promise of buying more U.S. agricultural products. For its part, China insists that it has bought U.S. agricultural products.

Merck posted earnings and revenue that exceeded expectations. Procter & Gamble climbed more than 3% and hit an all-time high after results beat expectations. GrubHub, however, fell more than 12% after posting a disappointing profit.

Brent futures rose $1.27, or 2.0% to $64.98 a barrel while WTI rose $1.40, or 2.5%, to $58.27 to close at a two-week high, on optimism the U.S. Federal Reserve will cut interest rates for the first time in more than 10 years.

European markets tumbled 0.5%-2.2% after digested earnings and renewed U.S.-China trade uncertainty. Pound hit a 28-month low against dollar as fears of the U.K. leaving the European Union without a deal escalate.

AT HOME

After gaining more than half a percent in the initial trade, Sesnex and Nifty nosedived to end with cuts of 0.7% and 0.9% respectively. Nifty closed at the lowest level since 8th March while Sensex settled at worst level since 16th May. Sensex settled at 37397, down 289 points while Nifty lost 103 points to finish at 11085. Nifty mid-cap and small-cap indices nosedived 1.9% and 2.6% respectively to close at lowest level since 31st January 2017 and 22 November 2016 respectively, marking a more than 2-1/2 year low. BSE Metal and Energy indices tumbled 3.2% and 2.4% respectively, becoming top losers among the sectoral indices while Telecom index was the top gainer, up 0.9%, followed by 0.7% higher Teck and IT indices.Rupee

FIIs net sold stocks worth Rs 645 cr but net bought index futures and stock futures worth Rs 939 cr and 1199 cr respectively. DIIs were net buyers to the tune of Rs 1080 cr.

Rupee depreciated 13 paise to end at 68.86/$.

Axis Bank's net profit missed estimates while NII met expectation and asset quality remained stable. NII . Gross NPA ratio improved 1 bps q-o-q to 5.25% and net NPA ratio improved 2 bps to 2.04%. Gross slippages hit a four-quarter high at Rs 4798 cr.

Tech Mahindra results missed estimates on dollar revenue and margin front.

Hero MotoCorp. reported dismal set of numbers which were largely in-line with estimates. Revenue fell 8.8% y-o-y to Rs 8030 cr, EBITDA fell 15.9% to Rs 1158 cr, margin dipped 120 bps to 14.4% and net profit, aided by one-time-gain, was up 38.3% at Rs 1257 cr.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-1% and SGX Nifty is suggesting about 30 points lower start for our market.

At the risk of repeating, we have been negative on Nifty ever since 11580 support was taken out and have been advising holding on to short position with a trailing stop-loss.

In yesterday's report we had said that 11140-11108 was an important support zone where 11140 coincided with 200-DMA while 11108 was the bottom made in May. We has also said that if 11108 breaks, 20-month moving average, placed around 11000, would be next crucial support and had advised holding on to short positions with the stop-loss of 11310.

Nifty, after touching a high of 11267 in the initial trade, plunged to touch a low of 11072 before closing at 11085 and is set to open lower today.

20-month moving average, placed around 11000, continues to be next important support to eye. If this level breaks decisively, 10585, the bottom made in February, would be the next meaningful support.

11267, the top made yesterday, would act as immediate hurdle, with the stop-loss of which, trading shorts should be held on to.

Eicher Motors, IOC and UPL will report their quarterly earnings today.

Fed is set to deliver its decision on interest rates today, with expectations that it will cut interest rates by a quarter point. Investors will also look for clues from Powell about potential rate cuts later this year.

NIFTY REBOUNDS FROM THE VICINITY OF 200-DMA SUPPORT; 11310 IS THE IMMEDIATE HURDLE

NIFTY REBOUNDS FROM THE VICINITY OF 200-DMA SUPPORT; 11310 IS THE IMMEDIATE HURDLE

WORLD MARKETS

Dow gained 0.1% while S & P 500 and Nasdaq fell 0.2% and 0.4% respectively, awaiting developments from U.S.-China trade talks this week in Shanghai as well as monetary policy decisions from Fed on Wednesday.

Brent futures rose 0.2% to $63.60 a barrel while WTI climbed 1.2% to $56.87.

In Europe, FTSE soared 1.8% but DAX ended flat and CAC fell 0.2%.

AT HOME

Sensex and Nifty fell 0.5% and 0.8% respectively to close at the lowest level since Mid-May, marking a 2-1/2 month low. Sensex settled at 37686, down 196 points while Nifty lost 95 points to finish at 11189. BSE mid-cap and small-cap indices fell 0.7% and 1% respectively. BSE Auto and Metal indices tumbled 3.6% and 3% respectively becoming top losers among the sectoral indices while IT index and Bankex gained 0.6% and 0.2% respectively.

FIIs net sold stocks worth Rs 704 cr while DIIs were net buyers to the tune of Rs 1352 cr.

Rupee appreciated 16 paise to end at 68.73/$.

Indiabulls Housing stock tumbled after BJP Leader Subramanian Swamy sent a letter to PM Modi, accusing the Indiabulls group of of Rs 1 lakh crore fraud.

Grasim slipped after Vodafone Idea, where it holds 11.6% stake, collapsed 27% after reporting net loss of Rs 4874 cr in the quarter ended June 30.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.7% and SGX Nifty is suggesting about 20 points higher start for our market.

At the risk of repeating, we have been negative on Nifty ever since 11580 support was taken out and have been advising holding on to short position with a trailing stop-loss.

After Nifty achieved 11300-11250 targets, we have been working with next target of 200-DMA, which had moved up to 11135 yesterday.

Nifty yesterday plunged to 11152 before closing at 11189, nearly achieving the 200-DMA level and vindicating our view.

200-DMA has now moved up to 11140, which is followed by 11108 bottom made in May, making 11140-11108 an important support zone. If 11108 breaks, 20-month moving average, placed around 11000, would be next crucial support.

Immediate resistance on hourly chart has now moved lower to 11310, with the stop-loss of which, existing shorts can be held on to.

Axis Bank, Tech Mahindra and Hero MotoCorp will report their quarterly earnings today.

11135-11108 IS THE IMPORTANT SUPPORT ZONE; 11400 IMMEDIATE HURDLE

11135-11108 IS THE IMPORTANT SUPPORT ZONE; 11400 IMMEDIATE HURDLE

WORLD MARKETS

Nasdaq soared 1.1% while S & P 500 and Dow rose 0.7% and 0.2% on Friday after strong earnings from tech giants like Alphabet and Intel and a better-than-expected GDP print.

Alphabet surged 9.6% after reporting better-than-expected earnings and announcing a massive $25 billion share repurchase program. Twitter shares gained more than 8% on the back of second-quarter results that topped estimates. Starbucks gained 8.9% after reporting hefty same store-sales growth while McDonald's climbed 0.5% as promotions led better-than-expected revenue in the U.S.

The U.S. economy expanded by 2.1% in the second quarter, beating the estimated 1.8% mark.

Brent futures rose 5 cents to $63.44 a barrel while US crude rose 18 cents to $56.20 a barrel

European markets gained 0.5%-0.8% after the European Central Bank suggested it could lower borrowing costs to tackle a slowdown in the euro zone.

For the week, Nasdaq and S & P 500 climbed 2.3% and 1.7% respectively while Dow rose 0.1%. European markets added 0.5%-1.3%. In Asia, Nikkei and Shanghai rose 0.9% and 0.7% respectively but Hang Seng fell 1.3%.

Brent rose more than 1% while US crude gained more than 0.5% for the week.

AT HOME

Benchmark indices ended with modest gains on the last trading day of the week, breaking six-day losing streak. Sensex added 51 points to settle at 37882 while Nifty finished at 11284, up 32 points. BSE mid-cap and small-cap indices rose 0.5% and 0.2% respectively. BSE Auto index climbed 2%, becoming top gainer among the sectoral indices, followed by 1% higher Bankex as well as Consumer Discretionary Goods & Services index.

FIIs net sold stocks and index futures worth Rs 1503 cr and 1049 cr respectively but net bought stock futures worth Rs 721 cr. DIIs were net buyers to the tune of Rs 1918 cr.

Rupee was trading at 68.89/$, appreciating 14 paise compared to previous close.

For the week, Sensex and Nifty lost 1.2% each, extending the losing streak to third straight week.

GST Council reduced GST rate on Electric vehicles to 5% from 12% and on EV chargers to 5% from 18%.

ICICI Bank's NII beat estimates and asset quality improved while profit missed estimate. NII grew 26.8% y-o-y to Rs 7737 cr and net profit stood at Rs 1908 cr as against loss of Rs 119.6 cr. Gross NPA ratio improved 20 bps q-o-q to 6.5% while net NPA ratio improved 29 bps to 1.77%. Slippages fell 22% q-o-q to Rs 2779 cr.

Maruti reported weak numbers that beat estimates. Revenue fell 12.2% y-o-y to Rs 19720 cr, EBITDA was down 38.5% at Rs 2018 cr, margins dipped 440 bps to 10.4% and net profit fell 27.3% to Rs 1435 cr. 

Bajaj Auto reported largely in-line with expected numbers. Revenue rose 4.5% y-o-y to Rs 7756 cr, EBITDA fell 6.5% to Rs 1198 cr, margin fell 175 bps to 15.45% and profit rose 0.9% to Rs 1125 cr.

JSW reported weak set of numbers. Revenue fell 3.4% y-o-y to Rs 19812 cr, EBITDA eased 27.2% to Rs 3716 cr, margin dipped 614 bps to 18.76% and net profit plunged 56.6% to Rs 1028 cr.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.7% and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that we had turned our view on Nifty negative ever since 11582 support was taken out and have been advising holding on to short positions with a trailing stop-loss.

11135-11108 is the next important support zone to eye where 11135 is where 200-DMA is placed while 11108 is the bottom made in May.

Immediate resistance on the hourly chart has moved lower to 11400, a crossover of which is required for a further upmove.

11130 BELOW 11230; 11460 CONTINUES TO BE IMMEDIATE HURDLE

11130 BELOW 11230; 11460 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 fell 0.5% each while Nasdaq tumbled 1% after strong economic data and comments from ECB President raised concerns that the Federal Reserve will not be as dovish as expected in its monetary policy announcement next week.

Durable goods orders rose 2% in June, after a 2.3% decline in May and an even bigger 2.8% drop in April. Weekly U.S. jobless claims number fell to a three-month low last week.

Facebook shares fell 1.9%, giving up earlier gains after CFO that the company expects revenue to fall “sequentially” going forward. Ford shares slid 7.5% after its earnings fell short of estimates and its 2019 guidance disappointed. Tesla plunged 13.6% after the electric car maker reported a bigger-than-expected loss for the previous quarter.

ECB President Mario Draghi said there was not a significant risk of a recession in the region. His comments came after the ECB left rates unchanged on Thursday, but opened the door for a rate cut later this year in its policy announcement.

European markets fell 0.2%-1.3% with DAX leading the losses

Brent futures rose 28 cents or 0.4% to $63.46 a barrel while WTI rose 14 cents, or 0.3% to $56.02.

AT HOME

After rising about eight tenth of a percent in the initial trade, benchmark indices gave away all the gains through the session to end marginally lower, extending the losing streak to sixth straight day. Sensex lost 16 points to settle at 37830 while Nifty finished at 11252, down 19 points. BSE mid-cap index gained 0.5% but small-cap index fell 0.1%. BSE Healthcare index climbed 1.6%, becoming top gainer among the sectoral indices, followed by 0.8% higher IT and Teck indices. Energy and Oil & Gas indices tumbled 1.9% and 1.3% respectively, becoming top losers.

FIIs net sold stocks and index futures worth Rs 127 cr and 1178 cr respectively but net bought stock futures worth Rs 418 cr. DIIs were net buyers to the tune of Rs 399 cr.

Rupee depreciated 6 paise to end at 69.06/$.

For the July derivative series, Nifty fell 5%.

Tata Motors reported disappointed set of results with consolidated net loss of Rs 3700 cr. JLR reported net loss of 400 mn pound with margin touching all time low of 4.9%.

Bajaj Finance posted 43.3% yoy rise in NII at Rs 3695 cr while net profit surged 43% to Rs 1195 cr. Slippages rose to Rs 702 cr from 607 cr qoq. 2-wheeler loans overdue for 30+ days rose to 5.3% vs 4.65% QoQ and digital products loans overdue for 30+ days rose to 1.46% vs 1.01%.

OUTLOOK

Today morning, main Asian markets are trading with cuts of SGX Nifty is suggesting about 30 points lower start for our market.

In yesterday's report we had said that 11230, the low made Wednesday, was the immediate support while 11460 would act as the immediate hurdle.

Nifty, after touching a high of 11361 in the initial trade, slipped to end at 11252 and is set to open lower today.

11230, the low made on Wednesday, continues to be immediate support, upon breach of which, 200-DMA, placed around 11130, would be the next important support.

11460 continues to be immediate hurdle, with the stop-loss of which, trading shorts should be held on to.

Maruti and Bajaj Auto will report their quarterly earnings today.

11130 BELOW 11230; 11460 IS IMMEDIATE HURDLE

11130 BELOW 11230; 11460 IS IMMEDIATE HURDLE

WORLD MARKETS

Dow fell 0.3% while S & P 500 and Nasdaq rose 0.5% and 0.8% respectively to close at record highs, propelled by a rally in chip stocks.

Texas Instrument surged 7.4% on the back of better-than-expected quarterly results. UPS jumped more than 8% after posting earnings and revenue that topped expectations. AT&T gained 3.6% after the company reported net phone subscriber growth that topped estimates.

On the flip side, Boeing shares dropped 3.1% after the aerospace giant posted a massive loss for the previous quarter. Caterpillar slid 4.5% after the company reported weaker-than-expected earnings and revenue amid rising costs.

Facebook and Amazon initially dropped after the Justice Department announced a broad antitrust review of big tech companies. The two stocks recovered to trade slightly higher.

Brent crude futures fell 50 cents to $63.33 a barrel while US crude fell 89 cents to $55.88.

In Europe, FTSE and CAC fell 0.7% and 0.2% respectively while DAX and Italy rose 0.3% and 0.6% respectively.

AT HOME

Sensex and Nifty slipped 0.4% and 0.5% respectively, extending the losing streak to fifth straight day and closing at the lowest level since 16th May. Sensex settled at 37847, down 135 points while Nifty lost 59 points to finish at 11271. NSE mid-cap and small-cap indices plunged a percent and half each to close at lowest level since 15th February 2017 and 19th February 2019 respectively. Except a 0.2% higher FMCG index, all the BSE sectoral indices ended in red with Metal index leading the losses, down 2.5%, followed by 2% lower Auto index.

FIIs net sold stocks, index futures and stock futures worth Rs 1394 cr, 1263 cr and 187 cr respectively. DIIs were net buyers to the tune of Rs 2140 cr.

Rupee depreciated 4 paise to end at 68.98/$.

Asian Paints reported strong set of numbers which surpassed expectations on all counts. Revenue rose 18.5% to Rs 5204 cr, EBITDA surged 24.1% at Rs 1156 cr, margin expanded 260 bps to 22.5% and net profit rose 17.7% to Rs 672 cr.

Bharti Infratel too reported strong set of earnings after market hours.

OUTLOOK

Today morning, Nikkei and Hang Seng are trading with modest gains while Shanghai is little changed. SGX Nifty is suggesting about 20 points higher start for our market.

Readers would recall that we had turned our view on Nifty negative ever since 11582 support was taken out and have been advising holding on to short positions with a trailing stop-loss.

In yesterday's report we had said that 11300 continued to immediate support upon breach of which 11250 followed by 11130 would be next supports to eye.

Nifty broke 11300 support and plunged all the way to 11230 before closing at 11271 and is set to open near 11300 today.

11230, the low made yesterday, is the immediate support to eye below which, 11130, where 200-DMA is placed, would be be next important support.

Immediate resistance on the hourly chart has moved lower to 11460, with the stop-loss of which, trading shorts can be held on to.

Tata Motors, Bajaj Finance and Bajaj Finserve will report their quarterly earnings today.

11300 CONTINUES TO BE IMMEDIATE SUPPORT; 11500 NEAREST HURDLE

11300 CONTINUES TO BE IMMEDIATE SUPPORT; 11500 NEAREST HURDLE

WORLD MARKETS

US indices gained 0.6%-0.7% on reports that in-person trade negotiations between the U.S. and China will begin next week. A batch of stronger-than-expected earnings also lifted sentiment.

Coca-Cola shares jumped more than 6% after the company posted earnings and revenue that topped expectations. United Technologies and Biogen also reported better-than-expected earnings.

Brent futures rose 67 cents to $63.94 a barrel and WTI climbed 64 cents to$56.77

European markets rose 0.6%-1.6% with DAX on the top, after digesting a strong set of corporate results and looking ahead to this week’s European Central Bank policy meeting.

In the UK, Boris Johnson’s was elected to lead the Conservative Party by its 160,000 members and will become U.K. prime minister on Wednesday. Johnson has previously stated that the U.K. must leave the European Union by the October 31 deadline “do or die, come what may.”

IMF cut it's global growth forecast by 10 bps each for 2019 and 2020 to 3.2% and 3.5% respectively.

AT HOME

Benchmark indices ended marginally lower after a choppy session, extending the losing streak to fourth consecutive day. Sensex lost 48 points to settle at 37982 while Nifty finished at 11331, down 15 points. BSE mid-cap index lost 0.6% but small-cap index gained 0.4%. BSE Utilities and FMCG indices gained 1.4% and 1.3% respectively, becoming top gainers among the sectoral indices while Finance and Auto indices fell 0.8% and  0.5% respectively, becoming top losers.

FIIs net sold stocks, index futures and stock futures worth Rs 2608 cr, 599 cr and 294 cr respectively. DIIs were net buyers to the tune of Rs 2625 cr.

Rupee closed at 68.94/$, depreciating 3 paise compared to previous close.

Citing weak demand, the International Monetary Fund cut India's growth forecast this financial year by 30 bps each for FY20 and FY21 to 7% and 7.2% respectively.

L & T orderbook growth beat estimate but the company said that it doesn't expect big orders from private players as they are not willing to add capacity. Revenue rose 9.7% to Rs 29636 cr, EBITDA rose 20.4% to Rs 3319 cr, margin improved 100 bps to 11.2% and net profit was up 21.2% at Rs 1473 cr. Order inflow at Rs 38700 cr was better-than-expected. The company maintained its FY20 revenue and order inflow guidance.

HUL reported stronger than expected margin on the back of revised accounting norms and lower ad spend but issued a cautious outlook. Revenue rose 6.6% yoy to Rs 10114 cr, EBITDA climbed 17.6% to Rs 2647 cr, margin expanded 250 bps to 26.2% and net profit was up 14.8% at Rs 1755 cr. Volume growth stood at 5%. The company expects near term demand to remain subdued.

ZEE Entertainment numbers were all round beat. Revenue rose 13.3% to Rs 2008 cr, EBITDA rose 33.6% to Rs 727 cr, margins rose to 36.2% from 30.6% and Net profit surged 62.5% to Rs 530 cr. Domestic ad revenue rose 4.2%  while subscription revenue surged 46.7%.

OUTLOOK

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

In yesterday's report we had reiterated the view that 11300 continues to be important immediate support to eye while 11550 is the immediate hurdle.

Nifty, after touching a high of 11398, slipped to end at 11331 and is set to open marginally lower today.

11300, where 34-week moving average is placed, continues to be important immediate support to eye. If that breaks, 11250, in the vicinity of which lower band of bollinger on weekly chart is placed, would be the next support. If 11250 gets violated, 200-DMA, placed around 11130, would be the next level to watch out.

Immediate hurdle on the hourly chart has moved lower to 11500, a crossover of which is required to negate negative bias.

Asian Paints and Bharti Infratel will report their quarterly earnings today.

NIFTY ACHIEVES 11300 TARGET

NIFTY ACHIEVES 11300 TARGET

WORLD MARKETS

US indices gained 0.1%-0.7% with Nasdaq topping the tally as Wall Street kicked off a big week of earnings.

Boeing shares fell after Fitch downgraded its outlook on the airplane maker to negative. Tech shares, led by chipmakers, rose after Goldman Sachs upgraded them.

Trump tweeted that the Fed should cut “deeper” at its upcoming meeting July 30-31.

US oil futures rose 1.1% or 59 cents to $56.22 a barrel while Brent rose 1.02% or 66 cents to $63.11 on worries over possible supply disruptions in Middle East after Iran’s seizure of a British tanker last week.

European markets rose 0.1%-0.4%.

AT HOME

After falling 1.2% and 1%, Sensex and Nifty recouped some of the losses in late noon trade to end with cuts of 0.8% and 0.6% respectively, extending the losing streak to third consecutive day. Sensex settled at 38031, down 305 points while  Nifty lost 73 points to finish at 11346. BSE mid-cap and small-cap indices fell 0.6% and 1.2% respectively. BSE Finance index tumbled 2.3%, becoming top loser among the sectoral indices, followed by 1.4% lower FMCG index and Bankex.

FIIs net sold stocks and index futures worth Rs 1970 cr and 1086 cr respectively but net bought stock futures worth Rs 718 cr. DIIs were net buyers to the tune of Rs 1830 cr.

Rupee closed at 68.91/$, depreciating 11 paise compared to previous close.

Kotak Mahindra Bank posted mixed set of numbers with  strong NII and margin numbers while loan growth slowed and net profit missed estimates. NII rose 22.8% to Rs 3173 cr and net profit rose 32.7% to Rs 1360 cr. Gross NPA ratio rose 5 bps to 2.19% while net NPA ratio fell 2 bps to 0.73%. Loan growth at 17.6% was lowest in 9 quarter while net interest margin, at 4.49%, was 16-quarter high.

OUTLOOK

Today morning, Nikkei is up about 0.9% while Hang Senga and Shanghai are little changed. SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 11380 is the immediate target on the downside below which 11300, where 34-week moving average was placed, would be the next important support to eye.

Nifty plunged to touch a  low of 11301 before closing at 11346, achieving 11300 target and vindicating our view.

11300 cotinues to be important immediate support to eye. If that gives way, 11250, in the vicinity of which lower band of bollinger on weekly chart is placed, would be the next support. If 11250 gets violated, 200-DMA, placed around 11130, would be the level to watch out.

Immediate hurdle on the hourly chart has moved lower to 11550, with the stop-loss of which, trading shorts can be held on to.

HUL, L & T and ZEEL will report their quarterly earnings today.

11380, 11300 ARE NEXT SUPPORTS; 11600 IMMEDIATE HURDLE

11380, 11300 ARE NEXT SUPPORTS; 11600 IMMEDIATE HURDLE

WORLD MARKETS

US indices fell 0.2%-0.7% on Friday after Iran said it captured a British oil tanker, claiming that the vessel was “violating international regulations.”

Microsoft shares hit a record after the tech giant posted quarterly earnings and revenue that topped analyst expectations. American Express, another Dow component, also reported better-than-expected earnings.

U.S. and Chinese officials spoke over the phone Thursday, with Treasury Secretary Steven Mnuchin suggesting face-to-face talks could follow

Brent futures rose 66 cents to $62.59 a barrel while WTI rose 33 cents to $55.63.

Main European market gained upto 0.3%. Italy however tumbled 2% as as Italian banks declined amid tension between the two parties of the nation’s coalition government. In terms of economic data,  the euro zone’s current-account surplus widened to 30 billion euros ($33.7 billion) in the 12-month period to May, from 22 billion in April.

For the week, the S&P 500 and Nasdaq Composite fell 1.2% each, notching their biggest weekly loss since late May, while the Dow Jones Industrial Average declined 0.6%. In Europe, FTSE was flat while DAX and CAC fell 0.5% and 0.4% respectively. In Asia, Hang Seng rose 1% but Nikkei and Shanghai fell 1% and 0.2% respectively. Brent and WTI crude nosedived 6% and 7.6% respectively.

AT HOME

Benchmark indices nosedived a percent and half, extending the losing streak to second straight day and closing at the lowest level since  17th May, marking a two-month low. Sensex settled at 38337, down 560 points while Nifty lost 177 points to finish at 11419. BSE mid-cap and small-cap indices tumbled 2% and 1.8% respectively.  NSE mid-cap and small-cap indices fell 2.2% and 1.8% respectively to close at five month low. Except 0.4% and 0.2% higher Power and Consumer Durables indices, all the BSE sectoral indices ended in red with Auto index leading the losses, down 3.2%, followed by 2.1% lower Bankex and Consumer Discretionary Goods & Services index.

FIIs net sold stocks, index futures and stock futures worth Rs 950 cr, 1059 cr and 75 cr respectively. DIIs were net buyers to the tune of Rs 734 cr.

Rupee appreciated 14 paise to end at 68.80/$.

For the week, Sensex and Nifty fell 1% and 1.2% respectively, extending the losing streak to second straight week.

Reliance Industries reported better-than-expected profit and revenue numbers while margins were slightly below estimate. Profit rose 2.6% to Rs 10104 cr, EBITDA rose 2% to Rs 21315 cr while margin fell 90 bps to 13.6%. Gross refining margin came in slightly-below-expectation at $8.10 a barrel. Reliance Jio's ARPU dipped 3.3% qoq to Rs 122.

HDFC Bank's NII rose 22.9% to Rs 13294 cr while profit rose 21% to Rs 5568 cr. Slippages rose to Rs 4225 cr from 3577 cr QoQ. Gross and Net NPA ratio deteriorated 4 bps each to 1.4% and 0.43% respectively.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.9% and SGX Nifty is suggesting about 15 points lower start for our market.

In Friday's report we had said that 11582 was the immediate support, upon breach of which, 11532 and 11461, would be next supports to eye.

Nifty broke 11582 support and plunged all the way to 11399 before closing at 11419 and is set to open near 11400 today.

11380 is where a trendline adjoining bottoms made in October 2018 and February is placed, is the next support to eye below which 11300 where 34-week moving average is placed, would be the next important support to eye.

11600 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts should be held on to.