24074 IS IMMEDIATE SUPPORT; 24600 IMMEDIATE HURDLE

 

24074 IS IMMEDIATE SUPPORT; 24600 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow inched up 0.2% while S & P500 and Nasdaq fell 0.5% and 0.9% respectively.

 

U.S. second-quarter GDP grow 2.8%, much more than expected 2.1% mark. The personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, increased at a 2.9% rate after surging at a 3.7% pace in the first quarter. Initial claims for state unemployment benefits dropped 10,000 to 235,000 for the week ended July 20, the estimated figure being 238,000. Durable goods orders fell 6.6% in June, compared with expectations for a 0.3% rise.

 

U.S. 10-year treasury yield fell 4 bps to 4.245%. Dollar index was flat at 104.40. Gold plunged 1.3% to $2365 per ounce.

 

WTI crude futures rose 0.9% to $78.28 while Brent futures rose 0.8% to $82.37 per barrel.

 

In Europe, FTSE rose 0.4% while DAX and CAC fell 0.5% and 1.2% respectively.

 

AT HOME

 

After falling eight tenth of a percent at the open, benchmark indices recoup most of the losses through the session to end little changed. Sensex settled at 80040, down 109 points while Nifty lost 7 points to finish at 24406. Nifty mid-cap and small-cap indices fell quarter of a percent each. Nifty Oil & Gas and Auto indices surged 2.2% and 1.3% respectively, becoming top gainers among the sectoral indices while Metal index was the top loser, down 1.3%, followed by 0.8% lower Consumer Durables and Bank indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2605 cr, 3089 cr and 1500 cr respectively. DIIs were net buyers to the tune of Rs 2432 cr.

 

Rupee appreciated 2 paise to end at 83.70/$.

 

Tech Mahindra's first quarter revenue beat muted expectations. Margins expand while profit grows 28% sequentially.

 

OUTLOOK

 

Today morning, Hang Seng is down 1.8% while Shanghai and Nikkei are off 0.5% and 0.1% respectively. GIFT Nifty is suggesting a modestly higher start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 23950, continued to be next support to eye for Nifty while 24600 continued to be immediate hurdle.

 

Nifty, after touching a low of 24210, rebounded to end at 24406.

 

24600 continues to be immediate hurdle for Nifty; 24074, the low made on budget day, around which 34-DMA is also placed, is the important immediate support to eye.

 

For Banknifty, 50560, the low made yesterday, which coincided with 38.2% retracement level of the 46077-53357 upmove seen since election result day bottom, is the immediate support, upon breach of which, 49717, the 50% retracement level of this upmove, would be next downside level to eye; 52000 is the immediate hurdle.

 

Cipla and IndusInd Bank will report their quarterly earnings today.

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