10952, 10820 ARE SUPPORTS; 11240 IMMEDIATE HURDLE
WORLD MARKETS
US indices, after falling
in negative territory in first half, rebounded later to end with gains of 0.4%-1.5%
on Friday as the biggest tech companies
— Amazon, Apple and Facebook — soared after posting stellar quarterly
results.
The earlier weakness was
on the back of uncertainty over fresh coronavirus relief bill and weak economic
data. White House Chief of staff Mark Meadows said Democratic leaders have
rejected four offers regarding the coronavirus relief bill. Also, Dow-component
Chevron fell 2.7% after reporting an $8.3 billion loss in the second quarter.
Meanwhile, University of
Michigan’s consumer sentiment index came in at 72.5 for July, down from June’s
78.1 and below estimates of 72.7.
Brent crude rose 24
cents, or 0.7%, to $43.18 a barrel while West Texas Intermediate crude futures
gained 35 cents, or 0.9%, to settle at $40.27 per barrel.
Gold futures spiked to an
all-time high of $2,005.4 an ounce, crossing the $2,000 mark for the first
time.
European markets fell
0.5%-1.5%. The euro zone economy contracted by 12.1% in the second quarter of
2020, compared to the first three months of the year and it's worst since
records began in 1995. French economy contracted by 13.8% in the second quarter
of the year, slightly better than estimates, but still the worst on record.
Data on Thursday showed German economy contracted by 10.1% in the second quarter
— the worst reading since records began in 1970.
For the month, US indices
gained 2.3%-6.8%, posting their fourth straight positive month.
AT HOME
Benchmark indices ended
lower by three tenth of a percent, extending the losing streak to third
consecutive day and closing at the lowest level since 20th July. Sensex settled
at 37606, down 129 points while Nifty lost 28 points to finish at 11073. BSE mid-cap
and small-cap indices however gained 0.4% and 0.8% respectively. BSE Healthcare
index climbed 3.4%, becoming top gainer among the sectoral indices, followed by
1.3% higher Realty index. Energy and Oil & Gas
indices were the top losers, down 1.6% and 0.8% respectively.
FIIs net sold stocks and
stock futures worth Rs 959 cr and 629 cr respectively but net bought index
futures worth Rs 30 cr. DIIS were net buyers to the tune of Rs 443 cr.
Rupee appreciated 3 paise
to end at 74.81/$.
For the week, Sensex and
Nifty fell 1.4% and 1.1% respectively, breaking 6-week winning streak.
OUTLOOK
Tensions between
Washington and Beijing will continue to be in focus. On Friday, Trump told
reporters he will act soon to ban Chinese-owned video app TikTok from the U.S.
On Sunday, U.S. Secretary of State Mike Pompeo said that U.S. President Donald
Trump is set to announce “in the coming days” new actions related to Chinese
software companies viewed by his administration as a national security threat.
Today morning, Nikkei and
Shaghai are up 1.9% and 0.7% respectively while Hang Seng is down 1.4%. SGX
Nifty is suggesting around 50 points lower start for our market.
In Friday's report we had
said that 11084, the low made Thursday, which also coincided with the 33%
retracement level of the recent 10562-11341 upmove was the immediate support,
upon breach of which, 10952 and 10820, the 50% and 67% retracement levels of
the 10562-11341 upmove, would be next downside targets.
Nifty broke 11084 support
and touched a low of 11026 before closing at 11073 and is set to open near
11000 today.
10952, the 50%
retracement level of the 10562-11341 upmove, continues to be next downside
support. If 10952 gives way, 10820, the 67% retracement level of the
10562-11341 upmove, would be next downside target.
11240, which is the 67%
retracement level of recent 11341-11026 fall, is the immediate resistance, upon
crossover of which, 11341, the top made last week, would be bigger hurdle to
eye.
Congrats.....on your performance last week on CNBC Awaz....commendable.
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