15726 CONTINUES TO BE IMMEDIATE SUPPORT; 15962 IMMEDIATE HURDLE

 

15726 CONTINUES TO BE IMMEDIATE SUPPORT; 15962 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.24% each while Nasdaq inched up 0.03%, all extending the winning streak to fifth straight day and hitting fresh record highs.

 

The Fed begins a two-day meeting Tuesday, followed by a news conference by Chair Powell on Wednesday, where markets would watch out for for any comments on when tapering of the central bank’s asset purchases could begin.

 

June new home sales were weaker by 6.6% compared to the 3% increase initially estimated.

 

US 10-year treasury yield was little changed at 1.291%. The dollar index fell 0.261% to 92.654. Spot gold too fell 0.2% to $1,798.41 per ounce.

 

Brent futures rose 18 cents to $74.28 a barrel, while WTI crude gained 5 cents to trade at $72.12 per barrel.

 

In Europe, CAC inched up 0.2%, FTSE was flat while DAX fell 0.3%. German Ifo July business climate index fell to 100.8 from June’s revised 101.7, missing a projection of 102.

 

Earlier stocks in Hong Kong tumbled amid regulatory fears in China’s technology and private education sectors. Also, later in the day, a high-level meeting between U.S. and Chinese officials ended with criticism on both sides.

 

AT HOME

 

Benchmark indices ended lower by a fifth of a percent, snapping 2-day winning streak. Sensex settled at 52852, down 123 points while Nifty lost 32 points to finish at 15824. Nifty mid-cap index was little changed while small-cap index gained 0.3%. BSE Energy index was the top loser among the sectoral indices, down 1.1%, followed by 0.8% lower Realty and Power indices. Basic Materials and Consumer Durables indices were the top gainers, up 0.8% and 0.7% respectively.

 

FIIs net sold stocks worth Rs 2379 cr but net bought index futures and stock futures worth Rs 74 cr and 709 cr respectively. DIIs were net buyers to the tune of Rs 1551 cr.

 

Rupee depreciated 2 paise to end at 74.42/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.1%-0.6% and SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 15726, the low made Thursday, was the immediate support.

 

Nifty, after touching a low of 15797, closed at 15824.

 

15726, the low made Thursday, continues to be immediate support, below which, 15578, the bottom made last week, would be the important support to eye.

 

15962, the top made last week, continues to be the resistance to eye.

 

34357, the low made last week, is the immediate support for Banknifty; 35300-35500 is the resistance zone.