10725 IS THE UPSIDE TARGET; 10380 IMMEDIATE SUPPORT

10725 IS THE UPSIDE TARGET; 10380 IMMEDIATE SUPPORT

WORLD MARKETS

After rising nearly a percent and half at the open following a better-than-expected jobs report, US indices gave away more than half of the gains through the session to end higher by 0.4%-0.5%.

Paring of gains happened after Florida reported a one-day spike of more than 10,000 coronavirus cases. The U.S. also reported a record of more than 50,000 cases in one day on Wednesday.

A record 4.8 million jobs were created in June, beating expected figure of 2.9 million by a wide margin. The unemployment rate fell to 11.1% from 13.3% in May. Economists were expecting a rate of 12.4%.

Initial jobless claims however rose by 1.427 million last week, higher than the expected 1.38 million but down from 1.48 million the week earlier. Continuing claims — the number of people receiving unemployment benefits for consecutive weeks — rose to 19.29 million, an increase of about 59,000.

Brent futures rose $1.11, or 2.64%, to settle at $43.14 per barrel while WTI gained 83 cents, or 2.08%, to settle at $40.65. Data from EIA showed U.S. crude inventories fell 7.2 million barrels from a record high last week, far more than analysts had expected.

Main European markets climbed 1.3%-2.5%

AT HOME

Bulls continued to call the shots as Benchmark indices climbed 1.2% each to close at the highest level since 6th March, marking a 4-month high. Sensex settled at 35843, up 429 points while Nifty added 121 points to finish at 10551. BSE mid-cap and small-cap indices gained 1% and 0.9% respectively. Except 0.2% lower Bankex, all the BSE sectoral indices ended in green with IT and Auto indices leading the tally, up 2.9% and 2.8% respectively. 

FIIs net sold stocks worth Rs 557 cr but net bought index futures and stock futures worth Rs 706 cr and 667 cr respectively. DIIs were net buyers to the tune of Rs 909 cr.

Rupee appreciated 58 paise to end at 75.01/$.

HDFC Life will replace Vedanta in Nifty effective July 31.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.3%-1% and SGX Nifty is suggesting around 50 points higher start for our market.

In yesterday's report we had said that 10553, continued to be important resistance, upon crossover of which, 34-week moving average, placed around 10725, would be the next upside target.

Nifty crossed 10553 hurdle and surged all the way to 10598 before closing at 10551 and is set to open near 10600 today.

34-week moving average, placed aroun 10725, continues to be next upside target.

Immediate support on the hourly chart has moved up to 10380, with the stop-loss of which, trading longs should be held on to.

U.S. markets will be closed today for the July Fourth holiday.