24250 BELOW 24450; 24854 IS IMMEDIATE HURDLE

 

24250 BELOW 24450; 24854 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.7%-0.9% on Friday

 

U.S. 10-year treasury yield rose 4 bps to 4.241%. Dollar index rose 0.2% to 104.36. Gold plunged 1.8% to $2400 per ounce.

 

Oil prices dropped on by more than $2 as investors reacted to renewed hopes of a ceasefire in Gaza. Brent crude fell 2.9% to $82.63 a barrel and WTI crude futures dropped 3.2%, to $80.13 a barrel.

 

European markets fell 0.6%-1%.

 

Japan's headline inflation was unchanged from May at 2.8%, while core inflation, which strips out prices of fresh food, accelerated to 2.6%, from 2.5% in May.

 

For the week, Dow advanced 0.7% but S&P 500 and Nasdaq slipped 2% and 3.6%, respectively, marking their biggest weekly losses since April. Nasdaq also snapped a six-week win streak. Dollar index inched up 0.3%, snapping a 2-week losing streak. Gold fell 0.4%, snapping a 4-week winning streak. Oil fell nearly 3%, extending last week's losses.

 

AT HOME

 

Sensex and Nifty tumbled 0.9% and 1.1% respectively, posting their worst day since election result day. Sensex settled at 80604, down 738 points while Nifty lost 270 points to finish at 24530. Nifty mid-cap and small-cap indices nosedived 2.1% and 2.3% respectively, extending yesterday's cuts. All the NSE sectoral indices ended lower, with Metal and Oil & Gas indices being the top losers, down 4% and 2.8% respectively.

 

FIIs net bought stocks and stock futures worth Rs 1506 cr and 1109 cr respectively but net sold index futures worth Rs 2029 cr. DIIs were net sellers to the tune of Rs 462 cr.

 

Rupee depreciated 1 paise to end at 83.66/$.

 

For the week, Sensex and Nifty were up just 0.1%, managing to extend the winning streak to seventh straight week.

 

Reliance Industries reported 12% increase in revenue for the June quarter driven by robust performance in oil & Gas, retail and telecom businesses. Profitability in oil to chemical business was muted due to decline in Gross Refining Margin.

 

HDFC Bank's numbers beat estimates as Net Interest Margin improves. Kotak Mahindra posted weak numbers with Net Interest margins plunging to eight quarter low.

 

OUTLOOK

 

Today morning, GIFT Nifty is suggesting around 150 points lower start for our market.

 

In Friday's report we had said that 25000, followed by 25400 are the next upside levels to eye while 24500 was the immediate support on hourly chart, with the stop-loss which, trading longs could be held on to.

 

Nifty, after touching a high of 24854, plunged to end at 24530 and is set to open near 24400 today.

 

A gap-down start today would break immediate support zone of 24500-24450 and hence 20-DMA, placed around 24250, would be next downside level to eye; 24855, the top made on Friday, is the immediate hurdle.

 

For Banknifty, 51749, the low made last week, is the immediate support, upon breach of which, 34-DMA, placed around 51400, would be next downside level to eye; 52800 is the immediate hurdle on hourly chart.

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