STAY LONG WITH THE STOP-LOSS OF 24500

 

STAY LONG WITH THE STOP-LOSS OF 24500

 

WORLD MARKETS

 

Dow rose half a percent while S & P 500 and Nasdaq fell 0.5% and 1.3% respectively.

 

Conference Board's consumer confidence index rose to 100.3 this month from 97.8 in June, beating estimates. The latest Job Openings and Labor Turnover Survey (JOLTS) indicated a slight easing in the labor market, with job openings in June registering at 8.18 million, a modest decline from the revised May figure of 8.23 million.

 

U.S. 10-year treasury yield fell 3-bps to 4.141%. Dollar index fell 0.1% to 104.45. Gold rose 1.1% to $2410 per ounce.

 

Brent crude oil futures fell by 12 cents to $79.78 a barrel and WTI futures were down 14 cents at $75.67 a barrel.

 

In Europe, FTSE fell 0.2% while DAX and CAC gained 0.5% and 0.4% respectively. Second-quarter GDP for the euro zone came in at 0.3% as against expected rise of 0.2% on a quarterly basis. The German economy unexpectedly contracted in the second quarter. German inflation to 2.3% in July, slightly above June’s 2.2%.

 

AT HOME

 

After rising half a percent, benchmark indices slipped in late noon trade to end just marginally higher. Sensex settled at 81455, up 99 points while Nifty added 21 points to finish at 24857. Nifty mid-cap and small-cap indices gained 0.4% and 0.9% respectively, both hitting fresh record highs. Nifty Consumer Durables and Media indices were the top gainers among the sectoral indices, up 1.1% and 0.7% respectively while FMCG and Healthcare indices were the top losers, down 1.1% and 0.8% respectively.

 

FIIs net sold stocks and stock futures worth Rs 5599 cr and 2143 cr respectively but net bought index futures worth Rs 386 cr. DIIs were net buyers to the tune of Rs 5565 cr.

 

Rupee ended unchanged at 83.73/$.

 

Tata Consumer's revenue and EBIDTA came largely in-line with estimates while profit after tax was a miss on account of finance cost. 

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.7% and 0.6% respectively while Nikkei is down 0.8%. GIFT Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 25400 followed by 25600 continued to be next upside targets to eye for Nifty while 24500 was the immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 24971, slipped to end at 24857.

 

25400 followed by 25600, continue to be next upside targets to eye for Nifty; 24500 continue to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 52340, the top made on Monday, is the immediate hurdle, upon crossover of which, 52700-52800 would be next target area; 51150, 50850 are the support levels to eye.

 

M & M, Maruti, Coal India and Tata Steel will report their quarterly earnings today.