25400, 25600 ARE NEXT BIG UPSIDE TARGETS; 24450 IS IMMEDIATE SUPPORT

 

25400, 25600 ARE NEXT BIG UPSIDE TARGETS; 24450 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices climbed 1%-1.6%, bouncing off from recent sell-off while a largely in-line key inflation reading kept bets of an early rate cut alive.

 

June’s personal consumption expenditures price index rose 0.1% on month and 2.5% from a year ago, which was in line with estimate.

 

U.S. 10-year treasury yield fell 5 bps to 4.194%. Dollar index fell 0.1% to 104.33. Gold rose 1% to $2387 per ounce.

 

WTI crude futures fell 1.4% to $77.16 and Brent futures fell 1.5% to $81.13 per barrel.

 

In Europe, FTSE and CAC rose 1.2% each while DAX gained 0.6%.

 

China’s industrial profits grew at 3.6% y-o-y in June, following a 0.7% gain in May, while first-half earnings were up 3.5%, accelerating from a 3.4% increase in the January-May period.

 

For the week, Dow rose three quarter of a percent, extending the winning streak to fourth consecutive week while S & P 500 and Nasdaq fell 0.8% and 2.1% respectively, extending last week's steep cuts. In Europe, FTSE and DAX rose 1.6% and 1.4% respectively while CAC fell 0.2%. In Asia, Nikkei nosedived 5%, Shanghai and Hang Seng fell 3.2% and 2.2% respectively while Nifty rose 1.2%.

 

AT HOME

 

Sensex and Nifty galloped 1.6% and 1.8% respectively, posting their biggest daily gain since 7th June and snapping a 5-session losing streak. Sensex settled at 81332, up 1292 points while Nifty added 428 points to finish at 24834. Nifty mid-cap and small-cap indices gained 1.8% and 1% respectively. Nifty hit fresh record intraday and closing highs. All the NSE sectoral indices ended higher with Metal and Healthcare indices on the top, up 3% and 2.7% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2546 cr, 4367 cr and 7074 cr respectively. DIIs were net buyers to the tune of Rs 2774 cr.

 

Rupee depreciated 3 paise to end at 83.73/$.

 

For the week, Sensex and Nifty gained 0.9% and 1.2% respectively, extending the winning streak to eighth consecutive week.

 

Dr Reddy beat estimates with revenue up 14% y-o-y. The company said it is targeting double digit revenue growth in India for the full year. ICICI Bank reported mixed set of numbers. Advances and deposits rose around 15%, NII growth was lower than estimate while net profit was above estimate.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 2.3% and 1.1% respectively while Shanghai is marginally higher. GIFT Nifty is suggesting around 150 points gap-up start for our market.

 

In Friday's report we had said that 24600 continued to be immediate hurdle for Nifty while 24074, the low made on budget day, was the important immediate support to eye.

 

Nifty crossed 24600 and surged all the way to 24861 before closing at 24834 and is set to open near 25000 today.

 

25400 followed by 25600 are the next upside targets to eye for Nifty. 24450 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 51700-51800 is the immediate resistance zone on the hourly chart, upon crossover of which, 52700-52800 would be next target area. 50438, the low made during the week, is the immediate support, upon breach of which, 49717, the 50% retracement level of the 46077-53357 upmove seen since election result day bottom, would be next downside level to eye.

Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.