15900-15962 CONTINUES TO BE RESISTANCE ZONE; 15744 IMMEDIATE SUPPORT

 

15900-15962 CONTINUES TO BE RESISTANCE ZONE; 15744 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.3% and 0.2% respectively on worries about slowing growth and resurgence in covid cases. Nasdaq inched up 0.1%.

 

The July Manufacturing PMI slowed to 59.5 from the June reading of 60.6.

 

The seven-day average of daily coronavirus cases in the U.S. reached 72,790 on Friday, surpassing the peak seen last summer when the nation didn’t have an authorized Covid-19 vaccine.

 

The yield on the benchmark 10-year Treasury note fell as much as 8 basis points to 1.15%. The dollar index fell 0.1% to 92.091. Spot gold rose 0.1% to $1,816.08 per ounce.

 

Brent crude slipped $2.16, or 2.9%, to $73.24 per barrel while WTI crude futures dropped $2.44, or 3.3%, to $71.51 per barrel after China's factory activity grew at its slowest pace in 17 months. A rise in oil output from OPEC producers also weighed on prices.

 

European marekts gained 0.2%-1%. Eurozone final Markit manufacturing PMI came in at 62.8, down from June’s all-time high of 63.4 but ahead of a preliminary estimate of 62.6. U.K. manufacturing activity slowed to 60.4 from June’s 63.9, having peaked at a record 65.6 in May.

 

AT HOME

 

New month began on a positive note as Sensex and Nifty climbed 0.7% and 0.8% respectively. Sensex added 363 points to settle at 52950 while Nifty finished at 15885, up 122 points. Nifty mid-cap and small-cap indices surged 1.6% and 0.9% respectively to hit fresh record highs.  All the BSE sectoral indices ended in green with Realty index leading the tally, up 4.9%, followed by 1.8% higher Oil & Gas index.

 

FIIs net sold stocks worth Rs 1540 cr but net bought index futures and stock futures worth Rs 6 cr and 910 cr respectively. DIIs were net buyers to the tune of Rs 1505 cr.

 

Rupee appreciated 7 paise to end at 74.34/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.5%-1% and SGX Nifty is suggesting around 40 points lower start for our market.

 

In yesterday's report we had said that 15900-15962 continued to be next target/resistance zone.

 

Nifty, after touching a high of 15893, closed at 15885 and is set to open near 15850 today.

 

15900-15962 continues to be immediate resistance zone upon crossover of which, 16300-16400 would be the next target zone to eye.

 

15744, where a double bottom was made on Friday, is the immediate support, upon breach of which 15513, the low made in July, would be the crucial support.

 

33900 is the support for Banknifty; 35200 is immediate hurdle.

 

Bharti Airtel, Adani Ports, and Tata Consumer will report their quarterly earnings today.