10827, 10894 ARE UPSIDE HURDLES; 10544 IS THE SUPPORT

10827, 10894 ARE UPSIDE HURDLES; 10544 IS THE SUPPORT

WORLD MARKETS

US indices fell 0.3%-0.7%, with the Dow snapping a four-day winning streak, amid a mixed batch of economic data and profit booking in tech stocks.

Initial weekly jobless claims rose by 1.3 million in the week ending July 11, higher than the expected figure of 1.25 million. Retail sales jumped 7.5% last month, topping forecast of a 5.2% gain and following 17.7% rise in May.

Brent crude fell 45 cents, or 1%, to $43.35 per barrel while WTI crude settled 45 cents, or 1.1%, lower at $40.75 per barrel after OPEC and other producers including Russia agreed to ease record supply curbs from August, though the drop was cushioned by tightening global inventories.

European markets eased 0.4%-0.7%. ECB kept its interest rates and emergency coronavirus stimulus program unchanged, while it monitors the economic strength of the euro zone.

AT HOME

After trading in a narrow range for better part of the day, benchmark indices spiked up in last hour to end with gains of 1.2% each. Sensex settled at 36471, up 420 points while Nifty added 121 points to finish at 10740. BSE mid-cap index rose 0.7% but small-cap index fell 0.1%. BSE IT and Teck indices climbed 4.1% and 3.1% respectively, becoming top gainers among the sectoral indices while Telecom and Power indices were the top losers, down 1.5% and 1% respectively.

FIIs net sold stocks and index futures worth Rs 1091 cr and 644 cr respectively but net bought stock futures worth Rs 715 cr. DIIs were net buyers to the tune of Rs 1660 cr.

Rupee depreciated 4 paise to end at 75.18/$.

OUTLOOK

Today morning, Hang Seng and Shanghai are up 0.8% and 0.6% respectively while Nikkei is off 0.1%. SGX Nifty is suggesting around 50 points higher start for our market.

In yesterday's report we had said that 10827, the top made on Wednesday was the immediate hurdle while 10544, the 50% retracement level of the recent 10194-10894 upmove, continued to be immediate support.

Nifty surged to close at 10740 and is set to open near 10800 today.

10827, the top made on Wednesday, continues to be immediate hurdle, upon crossover of which 10894, the top made Monday, would be bigger hurdle to eye.

10544, the 50% retracement level of the recent 10194-10894 upmove, continues to be immediate downside support to eye.

HCL Tech and Britannia will report their quarterly earnings today.