15635 IS THE NEXT SUPPORT

 

15635 IS THE NEXT SUPPORT

 

WORLD MARKETS

 

US indices fell 0.7%-0.9% amid concerns of a slowdown in economic growth.

 

Jobless claims unexpectedly jumped to 373,000 in the week ending July, the expected figure being 350,000. The previous week’s level was revised up by 7,000 to 371,000.

 

A resurgent coronavirus forced Japan to declare a state of emergency in Tokyo that will run throughout the Olympic Games. South Korea reported its highest daily tally of COVID-19 cases.

 

US 10-year treasury yield fell 2.8 bps to 1.293%. The dollar index fell 0.3% to 92.49. Spot gold fell 0.2% to $1,799.18 per ounce.

 

Brent futures gained 0.94% to $74.12 and WTI futures rose 1.02% to $72.94 per barrel after U.S. crude inventories fell by 6.9 million barrels, higher than the expectation of a 4 million barrels drop.

 

European markets tumbled 1.7%-2.6%. ECB revised its inflation target to 2% and said it would allow consumer prices to overshoot when deemed necessary.

 

AT HOME

 

Benchmark indices plunged nearly a percent, suffering the worst fall since 12th May. Sensex settled at 52568, down 485 points while Nifty lost 151 points to finish at 15728. Nifty mid-cap index fell 0.4% while small-cap index was little changed. Except 0.6% and 0.2% higher Utilities and Power indices respectively, all the BSE sectoral indices ended in red, with Metal index and Bankex leading the losses, down 2.4% and 1.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 555 cr, 2938 cr and 1086 cr respectively. DIIs were net sellers to the tune of Rs 949 cr.

 

Rupee depreciated 9 paise to end at 74.70/$.

 

TCS's dollar revenue, profit and margin for the April-June quarter missed estimate. Dollar revenue grew 2.8% q-o-q while constant currency revenue growth stood at 2.4% while margin fell 130 bps.

 

OUTLOOK

 

Today morning, Nikkei is down more than 2% while Hang Seng and Shanghai are off 0.9% each. SGX Nifty is suggesting around 80 points lower start for our market.

 

In yesterday's report we had reiterated the view that 15762-15738, the gap created by Monday's gap-up opening, continued to be immediate support zone.

 

Nifty broke this support zone and fell all the way to 15682 before closing at 15728. The benchmark is set to open below yesterday's low today.

 

15635, the low made last week, is the next downside support to eye, below which, 15450, the low made during June, would be the next important support.

 

15900 continues to be important hurdle, a crossover of which is required for a fresh upmove.