12000 ABOVE 11911; 11775 IS THE IMMEDIATE SUPPORT

12000 ABOVE 11911; 11775 IS THE IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.4%-1.1%, with the S & P 500 hitting a record closing high, after the U.S. and China agreed to hold off on slapping additional tariffs on their products in an effort to resume trade talks.

U.S. will also ease restrictions on American companies from selling products to Huawei, a giant telecommunications company from China. The U.S. president also said China would “buy farm product.”

US oil rose 1.1% to $59.09 a barrel while Brent rose 0.5% to $65.07 after OPEC+ announced it will extend production cuts for the next nine months.

European markets rose 0.5%-1%. Data showed euro zone factory activity contracted in June, with German activity slowing for the sixth month in a row, Italy falling for its ninth consecutive month, and Spain shrinking at its fastest rate in six years. The U.K.’s June manufacturing PMI reading fell to its lowest since October 2012.

AT HOME

After a gap up opening on the back of positive global cues, benchmark indices added some more weight through the session to end with gains of seven tenth of a percent, breaking two-day losing streak. Sensex added 291 points to settle at 39686 while Nifty finished at 11865, up 76 points. BSE mid-cap and small-cap indices rose 0.5% and 0.3% respectively. BSE Realty index climbed 2.6%, becoming top gainer among the sectoral indices, followed by 1.2% higher Auto index.

Rupee appreciated 7 paise to end at 68.94/$.

FIIs net bought stocks and index futures worth Rs 427 cr and 447 cr respectively but net sold stock futures worth Rs 325 cr. DIIs were net sellers to the tune of Rs 51 cr.

GST collection for June stood at Rs 99939 cr, slipping below 1 lakh cr mark for the first time after February, 2019.

India's June Nikkei Manufacturing PMI slowed to 52.1 from 52.7 in May.

Hero Motocorp sales fell 12.5% to 6.16 lakh units. Tata Motors sales fell 14% to 49073 units. TVS Motors sold 2.97 lakh units, a fall of 5%. Eicher Motor's CV sales for June fell 28.5% y-o-y to 4569 units while motor cycle sales fell 22% to 58339 units. Escorts tractor sales fell 10.2% to 8960 units. Maruti reported 14% dip at 1.24 lakh units. Ashok Leyland sold 12810 units, a dip of 19%. M & M tractor sales fell 18% to 33094 units while auto sales fell 6% to 42547 units. Bajaj Auto sales were flat at 4.04 lakh units.

OUTLOOK

Today morning, Hang Seng, which was shut yesterday, is up nearly a percent, Nikkei is little changed and Shanghai is down 0.2%. SGX Nifty is suggesting about 15 points higher start for our market.

In yesterday's report we had said that 11911, the top made last week, is the immediate hurdle and had advised holding on to long positions with the stop-loss of 11750, where 34-DMA was placed.

Nifty yesterday rose 76 points to close at 11865 and is set to open higher today.

11911, the top made last week, continue to be immediate upside target/resistance to eye, upon crossover of which, 12000 and 12103, the previous tops on daily chart, would be subsequent targets to eye.

34-DMA is now coinciding with the 11775 bottom made made on Friday, which makes 11775 immediate support. If that breaks, 11650, the bottom made last week, would be the next support to eye.

Traders are advised to hold long positions with the stop-loss of 11775.