19867-19563 CONTINUES TO BE IMMEDIATE RANGE

 

19867-19563 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow rose 0.2% but S & P 500 and Nasdaq fell 0.3% and 0.4% respectively.

 

U.S. factory production rebounded in the second quarter, ending two straight quarterly declines.

Construction spending increased solidly last month and May’s data was revised higher. On the flip side Job openings last month declined to the lowest level in more than two years. The latest ISM Manufacturing report showed a contraction for the ninth straight month.

 

U.S. 10-year treasury yield rose 6 bps to 4.027%. Dollar index inched up 0.1% to 101.96. Gold fell 0.8% to $1950 per ounce.

 

Caterpillar posted strong results, boosting shares 9%. Merck fell 1.3% even after reporting a smaller-than-expected loss and revenue that exceeded expectations. Pfizer fell 1.2% after posting mixed results due to plummeting Covid product sales, while Uber tumbled 5.7% on mixed earnings. JetBlue nosedived 8.3% after slashing guidance due to slowing domestic travel.

 

Brent crude October futures fell 0.6% to $84.91 a barrel and  WTI futures fell 0.5% to $81.37.

 

European markets fell 0.4%-1.4%. Euro zone manufacturing activity fell in July at the fastest pace since the start of the Covid-19 pandemic, a new survey showed.

 

China’s Caixin/S&P Global manufacturing PMI missed forecasts and showed the first decline in activity since April.

 

AT HOME

 

Benchmark indices ended marginally in the red after a choppy session. Sensex settled at 66459, down 68 points while Nifty lost 20 points to finish at 19733. Nifty mid-cap and small-cap index was little changed while small-cap index rose 0.7%. Nifty IT index climbed 1.2%, becoming top gainer among the sectoral indices, followed by 0.2% higher Metal index. Realty index was the top loser, down 1.8%, followed by 0.4% lower Healthcare index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 93 cr, 45 cr and 858 cr respectively. DIIs were net buyers to the tune of Rs 1036cr.

 

Rupee depreciated 1 paise to end at 82.26/$.

 

India's July manufacturing PMI stood at 57.7 Vs 57.8 in the previous month.

 

July GST collection rose 11% y-o-y to Rs. 1.65 lk cr.

 

Escorts Kubota July sales were up 3.9% at 5570 units. Bajaj Auto sales were down 10% at 3.19 lk units. Tata Motors total sales fell 1.4% to 80633 units. M & M tractor sales were up 8% at 25175 units while Auto sales rose 17.8% to 66124 units. Maruti sales were up 3.2% at 1.81 lk units.

 

OUTLOOK

 

Fitch Ratings lowered the U.S.’s long-term foreign currency issuer default rating to AA+ from AAA Tuesday night, citing “expected fiscal deterioration over the next three years.”

 

Today morning, Asian markets are trading with cuts of 0.2%-1.3% and GIFT Nifty is suggesting around 35 points lower start for our market.

 

In yesterday's report we had said that 19867, the top made last week, continued to be immediate hurdle, while 19563, the bottom made last week, continued to be immediate support.

 

Nifty, after touching a high of 19795, closed at 19733 and is set to open near 19700 today.

 

19867, the top made last week, continues to be immediate hurdle, above which, 19991, the top made on 20th July, would be bigger resistance to eye; 19563, the bottom made last week, continues to be immediate support.

 

For Banknifty, 45238, the low made last week, continues to be immediate support below which, 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.

 

Titan, HPCL and Ambuja Cement will report their quarterly earnings today.

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