19303-19523 CONTINUES TO BE IMMEDIATE RANGE

 

19303-19523 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

U.S. indices rose 0.25%-1.% with the Nasdaq on the top, after a cooler-than-expected retail inflation report eased interest rate hike worries. S & P 500 closed at the highest level since April 2022.

 

June CPI rose 3% y-o-y, the smallest increase since March 2021. On monthly basis, the index rose 0.2%. Both were lower than expected 3.1% and 0.3% levels respectively. Core CPI growth, at 4.8%, was also than 5% expected.

 

U.S. 10-year treasury yield fell 11 bps to 3.859%. Dollar index plunged 1.1% to 100.56, it's lowest level since April 2022. Gold rose 1.2% to $1956 per ounce.

 

Brent crude futures rose 0.9% to $80.11 a barrel and WTI crude settled up 1.2%, to $75.75 a barrel.

 

European markets gained 1.5%-1.8%.

 

AT HOME

 

Benchmark indices fell three tenth of a percent each, snapping a 2-day winning streak. Sensex settled at 65393, down 223 points while Nifty lost 55 points to finish at 19384. Nifty mid-cap and small-cap indices however gained 0.4% and 0.8% respectively, extending yesterday's upmove and with the former hitting fresh record high. Nifty IT and Private Bank indices were the top losers among the sectoral indices, down 0.7% and 0.3% respectively while PSU Bank and Media indices were the top gainers, up 0.8% and 0.5% respectively.

 

FIIs net sold stocks and stock futures worth 1242 cr and 2926 cr respectively but net bought index futures worth Rs 75 cr. DIIs were net buyers to the tune of Rs 437 cr.

 

Rupee appreciated 12 paise to end at 82.25/$.

 

India's retail inflation for June rose to 4.81% from 4.31% in May. Core CPI inched up to 5.1% from 5%. May IIP grew at 5.2% vs 4.2% in April.

 

TCS reported largely in-line-with expected numbers. It reported 0.4% q-o-q growth in dollar revenue while constant currency growth was flat. Margin stood at 23.2%.

 

HCL Tech disappointed as it reported 1.1% decline in dollar revenue. Margins fell to 17% vs 18.2% q-o-q. Company maintained it's FY24 constant currency revenue growth guidance at 6-8% and EBIT margin guidance at 18-19%.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.7%-2% and GIFT Nifty is suggesting around 100 points higher start for our market.

 

In yesterday's report we had said that 19523, the top made on Friday, continued to be immediate hurdle, while 19303, the low made Friday, continued to be immediate support.

 

Nifty, after making a high of 19507 in the initial trade, slipped to 19361 before closing at 19384. The benchmark is set to open above 19450 today.

 

19523, the top made on Friday, continues to be immediate hurdle, upon crossover of which 19750 would be next target; 19303, the low made Friday, continues to be immediate support, below which, a rising trendline adjoining tops made since mid-May, would land support in 19150-19200 region.

 

For Banknifty, 20-DMA, placed around 44350, is the next downside level to eye. 45100-45200 is the immediate resistance zone.

 

Wipro and Federal Bank will report their quarterly earnings today.

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