9544 BELOW 9726; 10070 CONTINUES TO BE IMMEDIATE HURDLE

9544 BELOW 9726; 10070 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 fell 0.6% and 0.4% respectively, snapping their 3-day winning streak, as increases in coronavirus cases cast doubt on a swift economic recovery. Nasdaq managed to gain 0.2%.

Several states in the U.S. are experiencing a resurgence of infections. Arizona reported a record high number of new confirmed cases, while Texas saw an 11% daily spike in hospitalizations for patients with Covid-19 yesterday.

Federal Reserve Chairman Jerome Powell said that the central bank will move away from corporate bond ETFs in favor of direct corporate-bond purchases.

Brent crude fell 35 cents, or 0.8%, to $40.61 a barrel while WTI fell 42 cents, or 1.1%, to settle at $37.96 per barrel.

Main European markets gained 0.2%-0.9%.

AT HOME

Benchmark indices ended modestly lower after a rangebound buy choppy session. Sensex settled at 33507, down 97 points while Nifty lost 33 points to finish at 9881. BSE mid-cap and small-cap indices however rose 0.3% and 0.7% respectively. BSE Telecom index climbed 2.4%, becoming top gainer among the sectoral indices, followed by 0.8% higher Auto index. Power index was the top loser, down 1%, followed by 0.8% lower Utilities and Metal indices.

FIIs net sold stocks worth Rs 487 cr but net bought index futures and stock futures worth Rs 266 cr and 552 cr respectively. DIIs were net buyers to the tune of Rs 168 cr.

Rupee appreciated 6 paise to end at 76.15/$.

The Supreme Court yesterday said there is "no merit in charging interest on interest" for deferred loan payment installments during the moratorium period announce in wake of the COVID-19 pandemic. The court asked the Centre and the RBI to review the situation and also sought clarity on the question on whether the Indian Banks' Association can come up with new guidelines. The matter will now be heard in the first week of August.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-1.4% and SGX Nifty is suggesting about 60 points lower start for our market.

In yesterday's report we had reiterated the view that 10070, the 67% retracement level of the recent 10328-9544 fall, continued to be immediate hurdle, while 9726, the low made Monday, continued to be immediate support.

Nifty, after touching a high of 10003, slipped to end at 9881 and is set to open near 9800 today.

9726, the low made Monday, continues to be immediate support, upon breach of which 9544, the low made last week, would be the important support to eye.

10070, the 67% retracement level of the recent 10328-9544 fall, continues to be immediate hurdle, upon crossover of which, 10328, the top made last week, would be the bigger resistance to eye.