15726 IS THE IMMEDIATE SUPPORT; 15962 IS THE HURDLE

 

15726 IS THE IMMEDIATE SUPPORT; 15962 IS THE HURDLE

 

WORLD MARKETS

 

On Friday, Dow rose 0.7% while S & P 500 and Nasdaq climbed 1% each to hit new records.

 

The yield on the benchmark 10-year Treasury note added 3 bps to reach 1.288%. Dollar index was slightly higher at 92.894. Spot gold fell 0.3% to $1,800.72 per ounce.

 

Brent crude advanced 31 cents, or 0.4%, to settle at $74.10 while WTI settled 16 cents, or 0.2%, higher at $72.07 per barrel.

 

European market rose 0.8%-1.4%. July’s flash PMI readings showed euro zone business activity growing at its fastest pace in more than two decades. U.K. retail sales grew 0.5% in June after a surprise pullback in May, however the IHS Markit/CIPS flash PMI dropped to 57.7 in July from 62.2 in June as the number of people instructed to isolate by the government’s test-and-trace app soared due to rising infections.

 

For the week, US indices gained 1%-2.8%. U.S. crude ended the week little changed while Brent gained 0.4%.  Gold shed 0.7%. Dollar index inched up 0.1%.

 

AT HOME

 

Sensex and Nifty gained 0.3% and 0.2% respectively, extending yesterday's mammoth upmove. Sensex settled at 52975, up 138 points while Nifty added 32 points to finish at 15856. Nifty mid-cap index rose 0.2% while small-cap index fell half a percent. BSE Realty index and Bankex climbed 1.5% and 1.2% respectively, becoming top gainers among the sectoral indices while Capital Goods index slipped 0.8%, becoming top loser, followed by 0.7% lower Industrials and Telecom indices.

 

FIIs net sold stocks worth Rs 163 cr but net bought index futures and stock futures worth Rs 697 cr and 149 cr respectively. DIIs were net buyers to the tune of Rs 2188 cr.

 

Rupee appreciated 6 paise to end at 74.40/$.

 

For the week, Sensex and Nifty fell 0.3% and 0.4% respectively.

 

Reliance Industries' Net profit and margin came in higher-than-expected but topline was a miss. ITC's revenue beat estimates and Cigarette volume climbed 32%%. ICICI posted big beat on NII front and NIM's were highest ever.

 

OUTLOOK

 

Nikkei, which has opened after holidays, is up 1.4% while Hang Seng and Shanghai are down 1.7% and 1.1% respectively. SGX Nifty is suggesting around 80 points lower start for our market.

 

In Friday's report we had said that 15840 continued to be immediate hurdle on the hourly chart, upon sustained trading above which, 15962, the top made last week, would be the next upside level to eye.

 

Nifty crossed 15840 hurdle and touched a high of 15900 and closed at 15856. The benchmark is set to open below 15800 today.

 

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

 

15962, the top made last week, is the resistance to eye.

 

Axis Bank, Kotak Mahindra Bank, L & T and Tata Motors will report their quarterly earnings today.