24750-24800 IS THE NEXT TARGET AREA; 24400-24350 IS THE SUPPORT ZONE

 

24750-24800 IS THE NEXT TARGET AREA; 24400-24350 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

U.S. indices gained 0.3%-0.5% as markets assessed impact of failed assassination attempt on Trump and on increased bets for a September rate cut.

 

Under a Trump presidency, markets expect a more hawkish trade policy, less regulation and looser climate change regulations. Investors also expect an extension of corporate and personal tax cuts expiring next year, fueling concerns about rising budget deficits under Trump.

 

Fed Chair Powell said the central bank wouldn’t wait until inflation was at its goal of 2% before lowering interest rates. He also said a hard landing scenario was unlikely for the economy.

 

U.S. 10-year treasury yield rose 5 bps to 4.233%. Dollar index rose 0.2% to 104.25. Gold rose 0.4% to $2422 per ounce.

 

Brent crude futures fell 0.2% to $81.96 a barrel while WTI futures fell 0.3% to $81.96 a barrel.

 

European markets fell 0.6%-1.2%.

 

AT HOME

 

Sensex and Nifty gained 0.2% and 0.4% respectively, extending Friday's climb and hitting fresh record highs. Sensex settled at 80664, up 145 points while Nifty added 84 points to finish at 24586. Nifty mid-cap and small-cap indices jumped 0.9% and 0.5% respectively, both extending the winning streak to third straight session and the former hitting fresh record highs. Except 0.3% lower IT index, all the NSE sectoral indices ended higher, with PSU Bank and Oil & Gas indices on the top, up 3.1% and 2% respectively.

 

FIIs net bought stock, index futures and stock futures worth Rs 2685 cr, 1335 cr and 4790 cr respectively. DIIs were net sellers to the tune of Rs 331 cr.

 

Rupee depreciated 5 paise to end at 83.59/$.

 

India's June exports rose 2.6% to $35.2 bn while imports rose 5% to $56.18 bn. Trade deficit rose 9.3% to $21 bn. India's June WPI inflation climbed to a 16-month high of 3.36% Vs 2.61% in May. Core WPI rose to 0.9% from 0.4%.

 

OUTLOOK

 

Today morning, Nikkei is up half a percent while Hang Seng and Shanghai are down 1.4% and 0.4% respectively. GIFT Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 24750-24800 is the next target zone for Nifty and had advised trailing stop-loss in longs to 24300.

 

Nifty surged to 24635 before closing at 24586.

 

24750-24800 continues to be next target zone for Nifty; 24400-34350 is the immediate support zone, with the stop-loss which, trading longs can be held on to.

 

For Banknifty, 51749, the low made last week, which roughly coincided with 20-DMA, is the immediate support, upon breach of which, 34-DMA, placed around 51100, would be bigger support to eye. 52800 is the immediate hurdle on hourly chart, upon crossover of which, 53357, the top made last week, would be next upside level to eye.

 

Bajaj Auto will report its quarterly earnings today.

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