16794 CONTINUES TO BE IMMEDIATE HURDLE; 16460 IMMEDIATE SUPPORT

 

16794 CONTINUES TO BE IMMEDIATE HURDLE; 16460 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.3% and 01% respectively while Nasdaq fell 0.4%, bracing for Fed decision and key economic data scheduled later in the week.

 

US 10-year treasury yield rose 5 bps to 2.80%. Dollar index was little changed at 106.48. Gold fell 0.4% to $1719 per ounce.

 

Brent September futures settled 1.9% higher at $105.15 a barrel, while WTI crude futures ended the day at $96.70 for a gain of 2.1%.

 

In Europe, FTSE and CAC rose 0.4% and 0.3% respectively while DAX fell 0.3%. Germany's Ifo business climate index for July came in at 88.6, its lowest level in more than two years.

 

AT HOME

 

Benchmark indices slipped half a percent each, snapping a 6-day winning streak. Sensex settled at 55766, down 306 points while Nifty lost 88 points to finish at 16631. Nifty mid-cap and small-cap indices fell 0.1% and 0.6% respectively. BSE Auto and Energy indices tumbled 1.7% and 1.3% respectively, becoming top losers among the sectoral indices while Metal index was the top gainer, up 1.5%, followed by half a percent lower Capital Goods and Basic Materials indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 845 cr, 987 cr and 629 cr respectively. DIIs were net sellers to the tune of Rs 72 cr.

 

Rupee appreciated 13 paise to end at 79.73/$.

 

OUTLOOK

 

Today morning, Hang Seng is up 0.4% while Nikkei and Shanghai are modestly lower. SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 16794, the top made in June, was the immediate upside target, while immediate support on the hourly chart had moved up to 16460, with the stop-loss of which, trading longs could be held on to.

 

Nifty slipped to touch a low of 16564 before closing at 16605.

 

16794, the top made in June, continues to be immediate upside target, upon crossover of which, 200-DMA, placed around 17050, is the next upside level to eye; 16460 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 37000, the 50% retracement level of the entire 41830-32155 fall, is the upside hurdle, upon crossover of which, 37700, around which a trendline adjoining tops made February and April is placed, would be the next upside level to eye. 36000 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

L & T, Asian Paints and Bajaj Auto will report their quarterly earnings today.