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.