34-DMA LANDS SUPPORT AROUND 23950; 24600 IS IMMEDIATE HURDLE

 

34-DMA LANDS SUPPORT AROUND 23950; 24600 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices plunged 1.2%-3.6%, with S & P 500 and Nasdaq posting their worst day since 2022 as Tesla and Alphabet slid after quarterly results.

 

Tesla nosedived 12.3%, its worst day since 2020, on weaker-than-expected results and a 7% y-o-y drop in auto revenue. Shares of Google parent company Alphabet fell 5% for their biggest one-day drop since Jan. 31 despite reporting a top- and bottom-line beat but YouTube advertising revenue came in below the consensus estimate.

 

The U.S. PMI flash manufacturing output index unexpectedly fell to 49.5 in July, as against expected reading of 51.5 as new orders, production and inventories declined. Also, New home sales came in lighter than economists had expected for the month of June.

 

U.S. 10-year treasury yield rose 3 bps to 4.288%. Dollar index fell 0.1% to 104.33. Gold fell half a percent to $2397 per ounce.

 

WTI crude futures rose 0.8% to $77.59 and Brent futures rose 0.9% to $81.71 per barrel.

 

European markets fell 0.2%-1.1%.  Flash PMI data showed business activity stalled in the euro zone in July, while it picked up in the U.K. thanks to strong manufacturing growth. Meantime, German consumer confidence was seen increasing.

 

AT HOME

 

Sensex and Nifty fell 0.4% and 0.3% respectively, extending the losing streak to fourth consecutive day. Sensex settled at 80148, down 280 points while Nifty lost 65 points to finish at 24413. Nifty mid-cap and small-cap indices however gained 1% and 1.8% respectively. Nifty Media and Oil & Gas indices were the top gainers among the sectoral indices, up 2.5% and 1.7% respectively while Bank and FMCG indices were the top losers, down 0.9% and 0.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 5131 cr, 3588 cr and 3008 cr respectively. DIIs were net buyers to the tune of Rs 3137 cr.

 

Rupee depreciated 3 paise to end at 83.72/$.

 

Axis Bank reports and operationally weak quarter as deposits and advances growth slow and slippages surge. L & T's revenue growth beat estimates but lower-than-expected margins lead to miss on profit.

 

OUTLOOK

 

Today morning, Asian markets are down 0.5%-2.7% and GIFT Nifty is suggesting more than 200 points gap-down start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 23900 was the next support to eye for Nifty while 24600 was the immediate hurdle on the hourly chart.

 

Nifty, after touching a low of 24307, rebounded to end at 24413. The benchmark is set to open near 24200 today.

 

34-DMA, placed around 23950, continues to be next support to eye for Nifty; 24600 continues to be immediate hurdle.

 

For Banknifty, 50576, the 38.2% retracement level of the 46077-53357 upmove seen since election result day bottom, is the next downside level to eye; 52200 is the immediate hurdle.

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