19450 BELOW 19563; 19867 IS IMMEDIATE HURDLE

 

19450 BELOW 19563; 19867 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices gained 0.5%-1.9% on Friday as June data for the personal consumption expenditures price index continued to show easing inflation.

 

June Core Personal Consumption Expenditure rose 4.1% y-o-y, lower than the anticipated 4.2%. Month-on-month increase of 0.2% was in-line with estimate.

 

U.S. 10-year treasury yield fell 5 bps to 3.953%. Dollar index was flat at 101.70. Gold rose 0.7% to $1959 per ounce. Bank of Japan made its yield curve control policy more flexible, which markets took as a step towards an eventual shift in its massive stimulus program.

 

Brent crude settled 75 cents higher to $84.99 a barrel, while WTI crude gained 49 cents to $80.58 a barrel.

 

In Europe, FTSE was little changed while DAX and CAC gained 0.4% and 0.2% respectively.

 

For the week, U.S. indices gained 0.7%-2% with the Dow and S&P 500 closing out their third winning weeks in a row.

 

AT HOME

 

Benchmark indices ended marginally lower after a volatile session, extending the losing streak to second straight day. Sensex settled at 66160, down 106 points while Nifty lost 14 points to finish at 19646. Nifty mid-cap and small-cap indices gained 0.6% and 0.2% respectively with the former extending the winning streak to fourth straight day and hit fresh record high. Nifty Realty and Media indices surged 1.8% and 1.4% respectively, becoming top gainers among the sectoral indices. IT and Bank indices were the top losers, down 0.9% and 0.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1024 cr, 1802 cr and 61 cr respectively. DIIs were net buyers to the tune of Rs 1634 cr.

 

Rupee depreciated 32 paise to end at 82.25/$.

 

For the week, Sensex and Nifty fell 0.8% and 0.5% respectively, snapping a 4-week winning streak.

 

Marico results were largely in-line with estimate and management commentary was positive. NTPC reported muted revenue growth but margins rose to 29% from 24.3% y-o-y.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.8% each and Shanghai is up a percent. GIFT Nifty is suggesting around 40 points higher start for our market.

 

In Friday's report we had said that 20-DMA, placed around 19580 was the next support for Nifty below which 19450, the 78.6% retracement level of the recent 19303-19991 upmove, would be next downside target.

 

Nifty, after touching a low of 19563, rebounded to end at 19646.

 

19563, the bottom made Friday, roughly coincided with 20-DMA, and hence is the immediate support to eye. Below, 19563, 19450, the 78.6% retracement level of the recent 19303-19991 upmove, would be the next downside target. 19867, the top made during last week, is the immediate hurdle, above which, 19991, the top made on 20th July, would be bigger resistance to eye.

 

For Banknifty, 45238, the low made Friday, coincided with the 61.8% retracement level of the recent 44547-46370 upmove and hence is the immediate support to eye. Below this level, 44937, the 78.6% retracement level of this upmove, would be next downside target. On the way up, 45850-45950 is the immediate resistance zone, above which, 46370, the top made last week, which was nearly retested this week, would be bigger hurdle to eye.

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20-DMA SUPPORT IN SIGHT

 

20-DMA SUPPORT IN SIGHT

 

WORLD MARKETS

 

U.S. indices fell 0.6%-0.7%, with the Dow snapping a 13-day winning streak, as 10-year treasury yield rose above the key 4% level after strong GDP data.

 

U.S. GDP grew 2.4% in the second quarter, better than the 2% increase expected. Personal consumption expenditures price index rose 2.6% in the second quarter, lower than the 3.2% increase expected and the 4.1% rise in the prior quarter. Jobless claims fell 7,000 to a seasonally adjusted 221,000 for the week ended July 22.

 

Honeywell fell more than 5% as revenue missed estimate. Meta Platforms shares climbed 4.4% on better-than-expected results and strong guidance.

 

U.S. 10-year treasury yield surged 13 bps to 4.004%. Dollar index jumped 0.6% to 101.69. Gold tumbled 1.3% to $1946 per ounce.

 

Brent crude rose 1.6% to $84.35 a barrel and WTI crude settled up by 1.7% to $80.09.

 

European markets gained 0.2%-2.1%. ECB hiked interest rate by 25 bps as was widely-expected but hinted at a possible pause to rate hikes.

 

AT HOME

 

After rising just under half a percent in the initial trade, benchmark indices nosedived a percent and third from the top but recouped some of the losses in last half an hour to finally end lower by 0.6%. Sensex settled at 66266, down 440 points while Nifty lost 118 points to finish at 19659. Nifty mid-cap index rose 0.3% while small-cap index ended flat.  Nifty Pharma and Healthcare indices surged 3% and 2.6% respectively, becoming top gainers among the sectoral indices while Auto and Private Bank indices were the top losers, down 1.2% and 1% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3979 cr, 3090 cr and 4863 cr respectively. DIIs were net buyers to the tune of Rs 2528 cr.

 

Rupee appreciated 7 paise to end at 81.93/$.

 

Cipla shares surged on the back of robust earnings for the first quarter of FY24. M & M shares plunged as buying stake in RBL Bank raised concerns related to company's capital allocation strategy.

 

For the July series, Nifty surged 3.6%, marking the fourth consecutive positive series.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-1.5% and GIFT Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 19991, the top made last week, continued to be immediate hurdle while 19650-19600 continued to be immediate support area.

 

Nifty, after touching a low of 19603, rebounded to end at 19659. The benchmark is set to open around 19600 today.

 

A lower start today would see Nifty testing the support of 20-DMA, which will inch higher to 19580-19600 region today. If this support is breached, 19450, the 78.6% retracement level of the recent 19303-19991 upmove, would be next downside target; 19867, the top made yesterday, is the immediate hurdle, above which, 19991, the top made last week, would be next upside level to eye.

 

For Banknifty, 45400 continues to be immediate support on the hourly chart; 46370, the top made last week, which was nearly retested yesterday, is the immediate hurdle.

 

IOC and Marico will report their quarterly earnings today.

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19991-19600 IS THE IMMEDIATE RANGE

 

19991-19600 IS THE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow rose 0.2% while S & P 500 and Nasdaq inched lower by 0.02% and 0.1% respectively after the Fed implemented a widely-expected 25 bps hike, bringing interest rates to their highest level since 2001.

 

Remarks from Chair Jerome Powell hinted the central bank could also hold rates steady at these levels, and suggested that the Federal Open Market Committee will remain data-dependent.

 

U.S. 10-year treasury yield fell 2 bps to 3.871%. Dollar index fell 0.3% to 101.03. Gold rose 0.3% to $1971 per ounce.

 

Brent crude futures closed down 0.9% at $82.92 a barrel, while WTI crude settled at $78.78, down 1.1%.

 

European markets fell 0.2%-1.4% with CAC leading the losses.

 

AT HOME

 

After Tuesday's consolidation, bulls decided to take charge as benchmark indices climbed half a percent each yesterday. Sensex settled at 66707, up 351 points while Nifty added 97 points to finish at 19778. Nifty mid-cap and small-cap indices rose 0.4% and 0.2% respectively, with the former hitting fresh record high. Except 0.3% and 0.01% lower Consumer Durables and Auto indices respectively, all the NSE sectoral indices ended higher, with PSU Bank and Realty indices on the top, up 1.5% and 1.2% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 923 cr, 381 cr and 2709 cr respectively. DIIs were net buyers to the tune of Rs 470 cr.

 

Rupee depreciated 13 paise to end at 82/$.

 

Axis Bank's results were operationally weak even as asset quality improves. Bajaj Finance reports decline in Net Interest Margins to below 10% even as it expects asset quality and return on assets and equity to improve in long term. Earnings from both Dr Reddy's and Cipla beat estimate. Dr Reddy's reported 29% rise in revenue while margins crossed 30%. Cipla's revenue rose nearly 18%. Tech Mahindra was a miss on all counts. Constant Currency revenue dipped over 4% while profit was down 38%. Tata Consumer results were largely in-line with estimate.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.9% and 0.2% respectively while Nikkei is off 0.1%. GIFT Nifty is suggesting around 75 points higher start for our market.

 

In yesterday's report we had said that 19650-19600 was the immediate support area while 19991, the top made last week, continued to be immediate hurdle.

 

Nifty surged to touch a high of 19825 before closing at 19778. The benchmark is set to open near 19850 today.

 

19991, the top made last week, continued to be immediate hurdle; 19650-19600 continues to be immediate support area.

 

For Banknifty, 45400 continues to be immediate support on the hourly chart; 46500, followed by 46800 are the upside targets to eye.

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19650-19600 IS THE SUPPORT AREA

 

19650-19600 IS THE SUPPORT AREA

 

WORLD MARKETS

 

U.S. indices rose 0.1%-0.6%, with the Dow rising for the 12th straight session, ahead of the Federal Reserve’s policy decision Wednesday.

 

U.S. consumer confidence increased to a two-year high in July amid a persistently tight labor market and receding inflation. However, consumers remain fearful of a recession over the next year.

 

U.S. 10-year treasury yield inched up 1 bps to 3.888%. Dollar index fell 0.1% to 101.30. Gold rose half a percent to $1965 per ounce.

 

Brent futures rose 90 cents to $83.64 a barrel and WTI crude rose 89 cents to $79.63.

 

In Europe, FTSE and DAX rose 0.2% and 0.1% respectively while CAC fell 0.2%. A recent survey showed demand for loans in the euro zone hitting a record low in the second quarter, and separate data showed deterioration of business confidence in Germany this month.

 

AT HOME

 

Benchmark indices ended flat after a rangebound but choppy session. Sensex settled at 66355, down 29 points while Nifty added 8 points to finish at 19680. Nifty mid-cap index rose 0.4% while small-cap index fell 0.1%. Nifty Metal index surged 2.9%, becoming top gainer among the sectoral indices, followed by 1.5% higher Media index. PSU Bank and FMCG indices were the top losers, down 1.5% and 0.9% respectively.

 

FIIs net bought stocks and stock futures worth Rs 1089 cr and 2267 cr respectively but net sold index futures worth Rs 1060 cr. DIIs were net sellers to the tune of Rs 334 cr.

Rupee depreciated 5 paise to end at 81.87/$.

 

Tata Motors reported solid set of numbers driven by JLR. Revenue rose 57% while margins expanded. It also announced conversion of DVR shares to ordinary shares. L&T's revenue and EBIDTA beat estimate while margin was a miss. Company’s order book crossed 4 lk cr. It announced Rs. 10000 cr buyback at Rs. 3000 per share

 

IMF raised India's FY24 GDP growth to 6.1% from 5.9% earlier.

 

OUTLOOK

 

Today morning, Asian markets are trading flat to modestly lower and GIFT Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 19650 continued to be immediate support on the hourly chart, upon beach of which, 19500, would be next downside level to eye.

 

Nifty, after touching a low of 19615, rebounded to end at 19680.

 

19650-19600 is the immediate support area, upon breach of which, 19500 would be next support to eye; 19991, the top made last week, continues to be immediate hurdle.

 

For Banknifty, 45400 continues to be immediate support on the hourly chart; 46500, followed by 46800 are the upside targets to eye.

 

Axis Bank, Bajaj Finance, BPCL, Cipla and Dr Reddy will report their quarterly earnings today.

Investment in securities market is subject to market risk.

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19500 BELOW 19650; 19991 IS IMMEDIATE HURDLE

 

19500 BELOW 19650; 19991 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices gained 0.2%-0.5%, with the Dow rising for the 11th consecutive session. Energy stocks led gains after oil and gasoline futures touched a three-month high.

 

A purchasing managers’ survey showed U.S. business activity slowed to a five-month low in July, dragged down by decelerating service sector growth.

 

U.S. 10-year treasury yield rose 4 bps to 3.878%. Dollar index rose 0.3% to 101.38. Gold fell 0.3% to $1955 per ounce.

 

Brent and WTI crude futures rose 2.1% each to $82.74 and $78.74 a barrel respectively to reach a near three-month high.

 

In Europe, FTSE and DAX inched up 0.2% and 0.1% respectively while CAC eased 0.1%. Euro zone business activity shrank much more than expected in July as demand in dominant services industry declined while factory output fell at the fastest pace since COVID-19 began, a survey showed. 

 

Data from Japan showed business activity expanded for a seventh straight month.

 

AT HOME

 

Benchmark indices slipped 0.4% each, extending losing streak to second straight day. Sensex settled at 66384, down 299 points while Nifty lost 72 points to finish at 19672. Nifty mid-cap index fell 0.2% but the small-cap index rose 0.4%, extending the winning streak to fourth consecutive day. Nifty FMCG index tumbled 1.7%, becoming top loser among the sectoral indices, followed by 0.7% lower Metal index. Healthcare and Pharma indices were the top gainers, up 0.4% each.

 

FIIs net sold stocks worth Rs. 83 cr but net bought index futures and stock futures worth Rs 316 cr and 1098 cr respectively. DIIs were net buyers to the tune of Rs 935 cr.

 

Rupee appreciated 13 paise to end at 81.82/$.

 

ITC shares fell after the company announced that its board has approved the demerger of the hotels business. Under the scheme of arrangement, ITC will hold 40% in the demerged entity and the balance shareholding would be held by ITC shareholders proportionate to their shareholding in ITC.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 3% and 1.5% respectively, reacting to news that China’s Politburo pledged to “adjust and optimize policies in a timely manner” for its ailing property sector. Nikkei is down 0.2% and GIFT Nifty is suggesting around 20 points higher start for our market.

 

In yesterday's report we had said that 19991, the top made last week, was the immediate hurdle and 19650 was the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty plunged all the way to 19658 before closing at 19672.

 

19650 continues to be immediate support on the hourly chart, upon beach of which, 19500, around which a trendline adjoining recent bottoms on hourly chart is placed, would be next downside level to eye; 19991, the top made last week, is the immediate hurdle.

 

For Banknifty, 46500, followed by 46800 are the upside targets to eye. 45400 is the immediate support on the hourly chart, below which, 45000, around which 20-DMA is placed, would be next support to eye. Meanwhile, trading longs can be held on to with the stop-loss of 45400.

 

Asian Paints and Bajaj Auto will report their quarterly earnings today.

Investment in securities market is subject to market risk.

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19500 BELOW 19650; 19991 IS IMMEDIATE HURDLE

 

19500 BELOW 19650; 19991 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 inched up a bit while Nasdaq fell 0.2% on Friday.

 

U.S. 10-year treasury yield fell 1 bps to 3.841%. Dollar index rose 0.3% to 101.01. Gold fell 0.4% to $1961 per ounce.

 

Brent crude futures rose 1.8% to $81.07 a barrel and WTI crude futures rose 1.9% to $77.07 a barrel, the highest since April 25.

 

In Europe, CAC and FTSE rose 0.6% and 0.2% respectively while DAX fell 0.2%.

 

Japan’s core inflation rose to 3.3%, matching a median market forecast but remaining ahead of the BoJ’s 2% target.

 

For the week, Dow and S & P 500 gained 2.1% and 0.7% respectively while Nasdaq fell 0.6%.

 

AT HOME

 

Sensex and Nifty tumbled 1.3% and 1.2% respectively, snapping a 6-day winning streak and suffering the worst cut after 13th March 2023. Sensex settled at 66684, down 887 points while Nifty lost 234 points to finish at 19745. Nifty mid-cap index fell 0.4% but small-cap index rose 0.7%. Nifty IT index nosedived 4.1%, becoming top loser among the sectoral indices, followed by 1.3% lower Consumer Durables index. Media and PSU Bank indices were the top gainers, up 0.5% and 0.25% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1999 cr, 1415 cr and 356 cr respectively. DIIs were net buyers to the tune of Rs 1291 cr.

 

Rupee appreciated 4 paise to end at 81.95/$.

 

For the week, Sensex and Nifty gained 0.9% each, extending the winning streak to fourth consecutive week.

 

Reliance industries posted good set of earnings driven by retail segment which reported highest ever revenue and margin and offset weak performance from O-to-C segment. Jio reported steady quarter. ICICI Bank reported business strong. Return on Assets was at all time high while asset quality was best in 33 quarters. kotak Bank's net profit beat estimate. Deposit growth was best in 16 quarters while Return on Assets was robust. Retail loan growth however, was soft.

 

OUTLOOK

 

Today morning, Nikkei is up 1.2% but Hang Seng and Shanghai are off 1.3% and 0.2% respectively. GIFT Nifty is suggesting a marginally lower start for our market.

 

In Friday's report we had said that 20071 was the next upside target to eye while 19700-19650 was the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

Nifty fell to 19700 before closing at 19745.

 

19991, the top made last week, is the immediate hurdle, upon crossover of which, 20070 would be next upside level to eye. 19650 is the immediate support on the hourly chart, upon breach of which, 19500, around which a trendline adjoining recent bottoms on hourly chart is placed, would be next downside level to eye. Meanwhile, trading longs can be held on to with the stop-loss of 19650.

 

For Banknifty, 46500, followed by 46800 are the upside targets to eye. 45400 is the immediate support on the hourly chart, below which, 45000, around which 20-DMA is placed, would be next support to eye. Meanwhile, trading longs can be held on to with the stop-loss of 45400.

 

Tata Steel will report its quarterly earnings today.

 

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TRAIL STOP-LOSS TO 19650

 

TRAIL STOP-LOSS TO 19650

 

WORLD MARKETS

 

Dow rose half a percent, extending the winning streak to ninth consecutive day, on the back of better-than-expected earnings results from drug maker Johnson & Johnson but S & P 500 and Nasdaq fell 0.7% and 2% respectively on account of slides in Netflix and Tesla

shares.

 

Jobless claims fell 9,000 to a seasonally adjusted 228,000 for the week ended July 15, as against the expected figure of 242,000.

 

U.S. 10-year treasury yield jumped 10 bps to 3.854%. Dollar index rose half a percent to 100.82. Gold fell 0.4% to $1969 per ounce.

 

Brent futures rose 0.2% to $79.65 a barrel and WTI crude gained 0.3% to $75.63 a barrel.

 

In Europe, FTSE and CAC rose 0.8% each while DAX gained 0.6%

 

Japan posted a surprise trade surplus of 43 billion yen ($308 million), its first surplus in 23 months.

 

AT HOME

 

Benchmark indices surged seven tenth of a percent each, extending the winning streak to sixth straight session and hit fresh record highs. Sensex settled at 67571, up 474 points while Nifty added 146 points to finish at 19979. Nifty mid-cap and small-cap indices gained 0.25% and 0.4% respectively. Except 0.7% and 0.2% lower IT and Consumer Durables indices respectively, all the NSE sectoral indices ended higher with Pharma and FMCG indices on the top, up 1.5% and 1.4% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 3371 cr, 996 cr and 1982 cr respectively. DIIs were net sellers to the tune of Rs 193 cr.

 

Rupee appreciated 11 paise to end at 81.98/$.

 

Infosys reported earnings which were largely in-line with estimate but cut full year revenue growth guidance from 4-7% to 1-3.5%. Infosys ADR plunged over 8%.

 

HUL's revenue and EBIDTA missed estimate and volume growth was slowest in five quarters.

 

OUTLOOK

 

Japan's June core inflation rate - which strips out costs of fresh food - came in at 3.3%, in line with expectations

 

Today morning, Hang Seng and Shanghai are up 0.2% and 0.1% respectively while Nikkei is off 0.4%. GIFT Nifty is suggesting around 90 points lower start for our market.

 

In yesterday's report we had said that 19950, followed by 20070 were the next upside targets to eye while 19600-19550 was the immediate support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged to 19991 before closing at 19979 and is set to open below 19900 today.

 

20071 is the next upside target to eye; 19700-19650 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 46500 is the next upside target; 45350 is the immediate support.

 

Reliance Industries, HDFC Life, Ultratech Cement and JSW Steel will report their quarterly earnings today.

Investment in securities market is subject to market risk.

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TRAIL STOP-LOSS TO 19550

 

TRAIL STOP-LOSS TO 19550

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.3% and 0.2% respectively with the Dow extending the winning streak to eighth consecutive day while Nasdaq ended little changed.

 

U.S. 10-year treasury yield fell 4 bps to 3.752%. Dollar index rose 0.4% to 100.28. Gold eased 0.1% to $1976 per ounce.

 

Pound fell sharply after Britain’s rate of inflation for June came in at 7.9%, its slowest in over a year.

 

Brent futures dipped 17 cents at $79.46 a barrel, while WTI crude dropped 40 cents at $75.35 a barrel.

 

In Europe, FTSE surged 1.8% while CAC inched up 0.1% and DAX eased 0.1%.

 

AT HOME

 

Benchmark indices ended higher by four tenth of a percent each, extending the winning streak to fifth consecutive day and hit fresh record highs. Sensex settled at 67097, up 302 points while Nifty added 84 points to finish at 19833. Nifty mid-cap and small-cap indices gained 0.7% and 0.8% respectively. Except 0.1% lower IT index, all the NSE sectoral indices ended higher, with PSU Bank and Media indices being the top gainers, up 2% and 1.1% respectively.

 

FIIs net bought stocks and stock futures worth Rs 1165 cr and 2399 cr respectively but net sold index futures worth Rs 460 cr. DIIs were net sellers to the tune of Rs 2135 cr.

 

Rupee depreciated 5 paise to end at 82.09/$.

 

OUTLOOK

 

Today morning, Nikkei is off 0.7%, Shanghai is little changed while Hang Seng is up 0.9%. GIFT Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that upon crossover of 19819, Nifty will March towards the big target of 20071, and had advised trailing stop-loss in longs to 19500.

 

Nifty rose to touch a high of 19851 before closing at 19833.

 

19950, followed by 20070 are the next upside targets to eye; 19600-19550 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, upon crossover of Tuesday's high, i.e. 45905, next target to eye would around 46500; 44900 continues to be immediate support.

 

Infosys and HUL will report their quarterly earnings today.

Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.