19160 BELOW 19296; 19650-19700 IS THE RESISTANCE ZONE

 

19160 BELOW 19296; 19650-19700 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

U.S. indices fell 0.1%-0.25% as rising bond yields continued to weigh on the sentiment.

 

Weekly jobless claims were in-line and second-quarter productivity data showed an uptick.

 

Qualcomm fell 8.2% after it missed third-quarter adjusted revenue and posted disappointing guidance. PayPal shed 12.3% despite posting in-line results while Expedia plunged 16.4% as gross bookings fell short of expectations.

 

U.S. 10-year treasury yield rose 10 bps to 4.181%, its highest level since November 2022. Dollar index fell 0.1% to 102.49. Gold was flat at $1934 per ounce.

 

Oil rose as Saudi Arabia and Russia took steps to keep supplies tight into September and possibly beyond. Brent futures rose 2.3%, to settle at $85.14 a barrel, while WTI crude rose 2.6%, to $81.55.

 

European markets fell 0.4%-0.9%. The BOE announced a 25 bps hike, bringing its main rate to 5.25%.

 

China’s Caixin survey for the services sector showed it expanded at a stronger pace in July compared to June.

 

AT HOME

 

Sensex and Nifty fell 0.8% and 0.7% respectively, extending the losing streak to third straight day and closed at the lowest level after 3rd and 10th July respectively. Sensex lost 542 points to settle at 65240 while Nifty lost 144 points to finish at 19381. Nifty mid-cap and small-cap indices however gained 0.25% and 0.1% respectively. Nifty Realty and Financial Services indices were the top losers among the sectoral indices, down 1.8% and 1.2% respectively while Pharma and Media indices were the top gainers, up 1% and 0.9% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 317 cr, 3442 cr and 4624 cr respectively. DIIs were net buyers to the tune of Rs 1729 cr.

 

Rupee depreciated 14 paise to end at 82.72/$.

 

Eicher Motors delivered a top-down beat in the first quarter earnings with the highest ever sales in the bus division and margins improving 110 bps y-o-y to 25.6%. Bharti Airtel results were a beat across all parameters with ARPU touching Rs. 200 per month.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 1.6% and 0.6% respectively while Nikkei is off 0.1%. GIFT Nifty is suggesting around 20 points higher start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 19350, was the next support to eye while 19700 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts could be held on to.

 

Nifty plunged to 19296 before closing at 19381.

 

19286, the low made yesterday, is the immediate support, below which, 19160, the 61.8% retracement level of the 18646-19991 upmove seen since 26th June, would be the next downside level to eye; 19650-19700 is the immediate resistance zone.

 

For Banknifty, 44000, the 78.6% retracement level of the 43345-46369 upmove seen since 20th June, is the next support; 45300 is immediate hurdle.

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