34-DMA LANDS SUPPORT AROUND 23900; 24600 IS IMMEDIATE HURDLE

 

34-DMA LANDS SUPPORT AROUND 23900; 24600 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.1%-0.2%.

 

UPS plunged 2% after second-quarter results missed on the top and bottom line. General Motors

beat analysts’ expectations but shares fell 6.4% as the automobile company delayed plans for its electric and autonomous vehicles.

 

U.S. existing home sales fell more than expected in June as the median house price set another record high.

 

U.S. 10-year treasury yield was flat at 4.253%. Dollar index rose 0.2% to 104.47. Gold rose half a percent to $2408 per ounce.

 

Oil fell to lowest level in more than a month, with renewed cease-fire negotiations in the Israel-Hamas war and demand worries weighing on the market. WTI crude futures fell 1.8% to $76.96 while Brent futures fell 1.7% to $81.01 per barrel.

 

In Europe, DAX rose 0.8% while FTSE and CAC fell 0.4% and 0.3% respectively.

 

AT HOME

 

After plunging nearly 1.8% on the back of budget announcement related to equity taxation, benchmark indices rebounded sharply to end just marginally lower. Sensex settled at 80429, down 73 points while Nifty lost 30 points to finish at 24479. Nifty mid-cap and small-cap indices fell 0.6% and 0.9% respectively. Nifty FMCG and Consumer Durables indices surged 2.7% and 2.1% respectively, becoming top gainers among the sectoral indices while Realty and Financial Services indices were the top losers, down 2.3% and 1.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2975 cr, 3660 cr and 6174 cr respectively. DIIs were net buyers to the tune of Rs 1419 cr.

 

Rupee depreciated 3 paise to end at record closing low of 83.69/$.

 

First budget of Modi government's third term projected fiscal deficit for current fiscal at 4.9% of GDP Vs 5.1% in interim budget. Gross and net market borrowing targets were pegged at Rs. 14.01 lk cr and Rs. 11.06 lk cr respectively.

 

Among major changes announced in the budget, short term capital gains tax was hiked to 20% and long-term capital gains tax to 12.5%. Limit of long-term capital gains tax exemption however was hiked to Rs. 1.25 lk from Rs. 1 lk. Budget also hiked STT on futures and options segment. The budget brought down long-term capital gains tax on property to 12.5% but removed indexation benefit. Budget cut custom duty on Gold and Silver to 6% from 15%.

 

On the personal tax front, standard deduction for salaried employees was increased to Rs. 75000 from Rs. 50000 in new tax regime and tax slabs here were also changed to make new regime more attractive. 

 

OUTLOOK

 

Today morning, Asian GIFT Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 20-DMA, placed around 24300, was the immediate support to eye, upon breach of which, 34-DMA, placed around 23900, would be next major support to eye.

 

Nifty, after touching a low of 24074, rebounded to end at 24479.

 

34-DMA, placed around 23900 is the next support to eye for Nifty; 24600 is the immediate hurdle on the hourly chart, upon crossover of which, 24855, the top made last week, would be next resistance to eye.

 

For Banknifty, 51342, the low made yesterday, which roughly coincided with 34-DMA, is the immediate support, upon breach of which, 50576, the 38.2% retracement level of the 46077-53357 upmove seen since election result day bottom, would be next downside level to eye; 52400-52500 is the immediate resistance zone.

 

Axis Bank and L & T will report their quarterly earnings today.

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