NIFTY RETREATS FROM 200-DMA; 10630 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY RETREATS FROM 200-DMA; 10630 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

After trading in the positive territory in the first half, US indices fell sharply later, with Dow closing flat while S & P 500 and Nasdaq easing 1% and 2.1% respectively.

Stocks opened higher on news that Pfizer and German biotech BioNTech SE were granted fast track designation by the FDA for two of the companies’ four vaccine candidates against the coronavirus. Pepsico's better-than-expected earnings also aided sentiment.

The reversal was led by big tech names including Amazon, Microsoft, Nvidia and Facebook, which ended down more than 2% after gaining earlier in the day. Surge in coronavirus cases also dented the sentiment.

The World Health Organization reported a record daily increase in global coronavirus cases on Sunday, with the total up by more than 230,000. In the United States, cases continue to surge in several states. Florida reported an increase of more than 15,000 new cases in 24 hours, a record for any state.

Brent futures fell 1 cent to $43.23 a barrel, while WTI crude fell 45 cents, or 1.1%, to settle at $40.10 per barrel.

European markets gained 1.2%-1.7%.

AT HOME

After rising more than a percent in the initial trade, Sensex and Nifty gave away more than half of the gains through the session to end higher by 0.3% and 0.4% respectively. Sensex settled at 36693, up 99 points while Nifty added 47 points to finish at 10815. BSE mid-cap index ended little changed while small-cap index fell 0.2%. BSE Energy and Telecom indices climbed 2.5% and 1.9% respectively, becoming top gainers among the sectoral indices while Realty and Finance indices were the top losers, down 1.5% each, followed by 1.4% lower Bankex.

FIIs net bought stocks worth Rs 222 cr but net sold index futures and stock futures worth Rs 498 cr and 830 cr respectively. DIIs were net sellers to the tune of Rs 1486 cr.

Rupee appreciated 1 paise to end at 75.19/$.

India’s retail inflation, measured by the Consumer Price Index (CPI) grew 6.09 per cent in the month of June. The government had not released the headline retail inflation data in April and May. However, in April, it had revised the CPI data for the month of March to 5.84 per cent from 5.91 per cent.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.1%-0.7% and SGX Nifty is suggesting around 40 points lower start for our market.

In yesterday's report we had reiterated the view that 10885, where 200 Day Simple Moving Average was placed, continued to be immediate upside target as well as resistance to eye and that 10630 continued to be immediate support, with the stop-loss of which, trading longs could be held on to.

Nifty, after touching a high of 10894, retreated to close at 10815 and is set to open below 10800 today.

10894, the top made yesterday, which coincided with the 200 day simple moving average, continues to be immediate hurdle to eye, above which, 10935, where 34-month moving average is placed, would be the next target/resistance to eye.

10630 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

Wipro will report its quarterly earnings today.