STAY LONG WITH THE STOP-LOSS OF 11064

STAY LONG WITH THE STOP-LOSS OF 11064

 

WORLD MARKETS

 

US indices gained 0.6%-1% on hopes of a fresh round of coronavirus relief package and better than expected initial jobless claims data.

 

Both Senate Majority Leader Mitch McConnell and House Speaker Nancy Pelosi said they remained optimistic on an agreement.

 

Initial jobless claims for the week ending Aug. 1 totaled 1.186 million, lower than the estimated 1.423 million and the lowest claims level since the pandemic began.

 

Brent crude futures rose 9 cents to $45.25 a barrel, while WTI crude fell 24 cents, or 0.6%, to settle at $41.95.

 

European markets fell 0.5%-1.3%. Bank of England kept benchmark interest rates at an all-time low of 0.1% and left the size of its bond-buying program unchanged at £745 billion ($981 billion).

 

AT HOME

 

Benchmark indices ended higher by nearly a percent after a choppy session, extending the winning streak to third straight day. Sensex settled at 38025, up 362 points while Nifty added 98 points to finish at 11200. BSE mid-cap and small-cap indices gained 0.8% and 1% respectively.  BSE IT and Teck indices rose 2.2% and 1.8% respectively, becoming top gainers among the sectoral indices while Telecom and Capital Goods indices were the top losers, down 0.3% each.

 

FIIs net bought stocks and index futures worth Rs 637 cr and 494 cr respectively but net sold stock futures worth Rs 596 cr. DIIs were net sellers to the tune of Rs 468 cr.

 

Rupee appreciated 1 paise to end at 74.93/$.

 

RBI's Monetary Policy Committee (MPC), at the end of three-day meeting, decided to leave the repo rate unchanged at 4% and maintained the stance at "Accommodative". The apex bank however announced one-time restructuring of corporate as well as retail loans. Other announcements included providing liquidity of Rs 10000 cr to NABARD and NHB, raising loan-to-value on gold loans to 90%.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-0.7% and SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 11225, the top made Wednesday, was the immediate hurdle, upon crossover of which, 11341, the top made last week, would be the next major target/resistance.

 

Nifty, after touching a high of 11256, slipped to 11127 and closed at 11200.

 

11341, the top made last week, continues to be next major target/resistance to eye.

 

11064, the bottom made on Wednesday, would now act as immediate support, with the stop-loss of which, trading longs should be held on to.

 

In the US, July non-farm payroll data will be released today and is expected to show a gain of 1.48 million jobs, down sharply from the 4.8 million in June. The jobless rate is expected to dip to 10.6% in July from 11.1%.