19296-19645 IS THE IMMEDIATE RANGE

 

19296-19645 IS THE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow rose 0.3% while S & P 500 and Nasdaq fell 0.1% and 0.7% on Friday.

 

July’s producer price index, rose 0.3% from the previous month, higher than the 0.2% expectation.

 

U.S. 10-year treasury yield rose 5 bps to 4.158%. Dollar index rose 0.2% to 102.85. Gold was flat at $1913 per ounce.

 

Brent crude futures rose 0.2% to $86.59 a barrel, while WTI crude futures gained 0.3% to $83.05.

 

European markets fell 1%-1.3%.

 

For the week, The S&P 500 and the Nasdaq declined 0.3% and 1.9% respectively, registering their second straight losing week. The Dow rose 0.6%. Dollar index rose 0.8% for its fourth consecutive up-week. Both crude oil benchmarks rose about 0.5% for their 7th straight weekly gain.

 

AT HOME

 

Benchmark indices slipped 0.6% each, extending yesterday's weakness. Sensex settled at 65322, down 365 points while Nifty lost 115 points to finish at 19428. Nifty mid-cap and small-cap indices fell 0.4% and 0.2% respectively. Except 1.2% and 0.1% higher PSU Bank and Consumer Durables indices respectively, all the NSE sectoral indices ended lower, with Media index being the top loser, down 1.8%, followed by 1.4% lower Pharma and Healthcare indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3073 cr, 100 cr and 1584 cr respectively. DIIs were net buyers to the tune of Rs 500 cr.

 

Rupee depreciated 13 paise to end at 82.84/$.

 

For the week, Sensex and Nifty fell 0.6% and 0.4% respectively, extending the losing streak to third consecutive week and posting lowest weekly close since the week ended 7th July.

 

Industrial production slowed to a 3-monh low of 3.7% in June as manufacturing slowed.

 

ONGC quarterly numbers beat estimate.

 

OUTLOOK

 

Today morning, Hang Seng is down more than 2% while Shanghai and Nikkei are off 0.8% and 0.4% respectively. GIFT Nifty is suggesting around 50 points lower start for our market.

 

In Friday's report we had said that 19650 continued to be immediate hurdle while 19296 continued to be immediate support.

 

Nifty, after touching a low of 19412, closed at 19428 and is set to open below 19400 today.

 

19296, the low made on 3rd August, continues to be immediate support, upon breach of which, 19160 and 18934, the 61.8% and 78.6% retracement levels of the 18646-19991 upmove seen since 26th June, would be next downside levels to eye; On the way up, 19645, the top made last week, is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 44000, the 78.6% retracement level of the 43345-46370 upmove seen since 20th June, is the next support, upon breach of which, the benchmark might retest 43345 bottom. On the way up, 44700 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

India's July CPI data will be out today.

 

ITC and Divi's Lab will report their quarterly earnings today.

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