17490-17161 IS THE IMMEDIATE RANGE

 

17490-17161 IS THE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow inched up 0.2% while S & P 500 and Nasdaq fell 0.2% and 0.5% respectively as markets assessed strong jobs report and its implication for the Federal Reserve’s rate tightening campaign.

 

US economy added 528,000 jobs in July, beating estimate of a 258,000 increase by a wide margin. The unemployment rate ticked down to 3.5%, below the 3.6% estimate. Wage growth also rose more than estimated, up 0.5% for the month and 5.2% y-o-y, signaling that high inflation is likely still a problem.

 

US 10-year treasury yield jumped 14 bps to 2.832%. Dollar index rose 0.8% to 106.58. Gold fell 0.9% to $1774 per ounce.

 

Brent crude finished the day 0.8% higher at $94.92 per barrel and WTI crude settled 0.5% higher at $89.01 per barrel.

 

In Europe, FTSE eased 0.1% while DAX and CAC fell 0.6% each. French industrial output unexpectedly rose 1.4% month-on-month in June, despite forecasts for a 0.2% contraction amid persistent supply chain problems and the energy crisis.

 

For the week, Dow fell 0.1% while S & P 500 and Nasdaq rose 0.4% and 2.2% respectively. European markets gained 0.2%-0.7%. In Asia, Nifty and Nikkei rose 1.4% and 0.8% respectively but Shanghai and Hang Seng fell 1.1% and 0.2% respectively. Brent and WTI crude nosedived 9% and 10% respectively, hitting their lowest levels after mid-Feb. US 10-year treasury yield rose 18 bps to 2.832%, snapping 3-week losing streak. Dollar index rose 0.7% to 106.58, snapping 2-week losing streak.

 

AT HOME

 

It was a day of consolidation as benchmark indices ended marginally higher after a rangebound but choppy session. Sensex settled at 58387, up 89 points while Nifty added 15 points to finish at 17397. Nifty mid-cap index rose 0.2% but small-cap index eased 0.1%. BSE Telecom and Basic Materials indices gained 1.3% and 0.9% respectively, becoming top gainers among the sectoral indices while Utilities and Power indices were the top losers, down 1.9% and 1.6% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1606 cr, 902 cr and 851 cr respectively. DIIs were net sellers to the tune of Rs 496 cr.

 

Rupee appreciated 23 paise to end at 79.24/$.

 

Monetary Policy Committee voted unanimously to hike repo rate by 50 bps to 5.4%. RBI maintained FY23 CPI inflation forecast at 6.7% and FY23 GDP growth estimate at 7.2%.

 

For the week, Sensex and Nifty gained 1.4% each, extending the winning streak to third consecutive week.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are little changed while Hang Seng is down nearly a percent. SGX Nifty is suggesting around 40 points lower start for our market.

 

In Friday's report we had said that 17490, the top made Thursday, was the immediate hurdle, while 17161, the low made Thursday, was the immediate support.

 

Nifty, after touching a high of 17474, eased to end at 17397.

 

17490, the top made last week, continues to be immediate hurdle, upon crossover of which, 17725, around which a trendline adjoining tops made in January and April is placed, would be the next target; 17161, the low made Thursday, continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 38637, the 67% retracement level of the entire 41830-32155 fall, is the next upside levels to eye; 37249, the low made last week, is the immediate support, with the stop-loss of which, trading longs  can be held on to.