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.