10553-10194 CONTINUES TO BE IMMEDIATE RANGE

10553-10194 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices nosedived 2.4%-2.8% on Friday after Texas and Florida rolled back some of their reopening measures, raising concern about the latest spike in coronavirus cases and its impact on the economy.

Texas ordered all bars and establishments that receive more than 51% of their gross receipts from alcoholic beverages to shut down operations. Restaurants, meanwhile, must limit on-premise dining to less than 50% indoor capacity. Florida also announced it would suspend “on premises consumption” of alcohol at bars in the state.

Bank shares fell after Federal Reserve told them to suspend share repurchase programs and cap dividend payments at current levels for the third quarter as annual stress test showed some banks could get close to minimum capital levels in scenarios related to the coronavirus pandemic.

Nike shares slid 7.6% after reporting a surprising quarterly loss of 51 cents per share.

Meanwhile, the Commerce Department reported that consumer spending increased 8.2% last month, marking the largest one-month gain dating back to records beginning in 1959.

The U.S. 5-year Treasury yield dropped to a record low of 0.29%. The 3-year rate also slid to an all-time low of 0.17%.

Brent futures fell 14 cents to $40.9 while WTI futures fell 23 cents, or 0.6% to settle at $38.49 per barrel.

In Europe, FTSE rose 0.2% but DAX and CAC fell 0.7% and 0.2% respectively.

For the week, US indices fell 1.9%-3.3%. Brent fell 3.1% while U.S. crude eased 3.6%

AT HOME

After two-day retreat, bulls made a comeback as benchmark indices gained nine tenth of a percent, breaking two-day losing streak. Sensex settled at 35171, up 329 points while Nifty added 94 points to finish at 10383. BSE mid-cap and small-cap indices gained 0.3% and 0.2% respectively. BSE IT and Teck indices soared 5.1% and 4% respectively, becoming top gainers among the sectoral indices, while FMCG and Realty indices were the top losers, down 1.2% and 1.1% respectively.

FIIs net sold stocks and index futures worth Rs 753 cr and 190 cr respectively but net bought stock futures worth Rs 363 cr. DIIs were net buyers to the tune of Rs 1304 cr.

Rupee appreciated 1 paise to end at 75.61/$.

IT stocks rallied after Accenture came out with better-than-expected quarterly numbers.

For the week, Sensex and Nifty gained 1.3% and 1.4% respectively, extending the winning streak to second consecutive week.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-1.2% and SGX Nifty is suggesting around 35 points lower start for our market

In Friday's report we had reiterated the view that 10200 continued to be immediate support while 10553 continued to be important resistance.

Nifty, after a rangebound but choppy session, ended 0.9% higher at 10383 and is set to open near 10350 today.

10194, the low made last week, continues to be important immediate support, below which, 10050 and 9880, the 50% and 67% retracement levels of the recent 9544-10553 upmove, would be next supports to eye.

10553, the top made last week, which also coincided with the 61.8% retracement level of the entire 12430-7511 fall, continues to be important resistance, a crossover of which is required for a fresh upmove.