SUPPORT ZONE HELD ONCE AGAIN

 

SUPPORT ZONE HELD ONCE AGAIN

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.6% and 0.25% respectively to hit fresh record highs after digesting July inflation data. Nasdaq however fell 0.2%.

 

Consumer-price index for July rose 5.4% y-o-y and 0.5% from the previous month, the expected figures being 5.3% and 0.5% respectively. Core inflation, however, rose by just 4.3% y-o-y and 0.3% m-o-m, missing expectations of a 0.4% increase and lower than June’s 0.9% increase.

 

US 10-year treasury yield slid 1 bps to 1.329%. Dollar index fell 0.2% to 92.915. Spot gold rose 1.4% to $1,752.46 per ounce.

 

WTI crude settled 1.4% higher at $69.25 per barrel while Brent crude advanced 1.2% to $71.44 per barrel.

 

European markets gained 0.4%-0.8%.

 

AT HOME

 

After falling nearly three tenth of a percent, benchmark indices recouped all the losses to end little changed. Sensex settled at 52526, down 28 points while Nifty added 2 points to finish at 16282. Nifty mid-cap and small-cap indices ended lower by 0.1% and 0.7% respectively. BSE Metal index soared 3.5%, becoming top gainer among the sectoral indices, followed by 1.3% higher Power index. Healthcare index and Bankex were the top losers, down 1.3% and 0.7% respectively.

 

FIIs net bought stocks and stock futures worth Rs 238 cr and 899 cr respectively but net bought index futures worth Rs 905 cr. DIIs were net buyers to the tune of Rs 206 cr.

 

Rupee depreciated 1 paise to end at 74.43/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.3%, Shanghai is flat while Hang Seng is down 0.4%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 16176-16146, the gap created by last Wednesday’s gap-up opening, continued to be immediate support zone and trading longs can be held on to with the stop-loss of 16146.

 

Nifty, after touching a low of 16162, rebounded to end at 16282.

 

16176-16146, the gap created by last Wednesday’s gap-up opening, continues to be immediate support zone.

 

16359, the top made Tuesday, is the immediate hurdle, upon crossover of which, 16500-16550 would be the next target zone.

 

Meanwhile, trading longs can be held on to with the stop-loss of 16146.

 

For Banknifty, 35531, the low made yesterday, which also coincided with a downward sloping trendline adjoining recent bottoms on the hourly chart, is the immediate support to eye. 36317, the top made Tuesday, is the immediate hurdle, above which, 36500 and 37200 would be next targets to eye.