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.