TRAIL STOP-LOSS TO 24450
WORLD MARKETS
On Tuesday, Dow surged
1.8%, notching its best session since June 2023 and hitting fresh record highs.
S & P 500 and Nasdaq gained 0.6% and 0.2% respectively. Financials gained
after earnings from Bank of America and Morgan Stanley came in ahead of forecasts. United Health surged 6.5% on the back of
better-than-expected second-quarter results.
Yesterday, Dow rose 0.6%
but S & P 500 and Nasdaq tumbled 1.4% and 2.8% respectively, with the
latter posting its worst day since December 2022 as chip-related stocks dropped
following reports of more stringent export restrictions from the U.S. and as
comments from former U.S. President Donald Trump raised geopolitical tensions.
Bloomberg News reported
that the Biden administration is considering tougher trade restrictions if
companies continue granting China access to U.S.-made technology.
Data showed production at
U.S. factories increased more than expected in June, contributing to a solid
rebound in output in the second quarter.
U.S. 10-year treasury
yield were flat at 4.159% after falling 7 bps in the previous session. Dollar
index tumbled half a percent to 103.74. Gold fell 0.4% to $2458 after climbing
1.9% in the previous session.
Brent futures rose $1.34,
or 1.6%, to $85.06 a barrel, while WTI crude rose $1.94, or 2.4%, to $82.70.
In Europe, FTSE rose 0.3%
while DAX and CAC fell 0.4% and 0.1% respectively. Inflation in UK held at 2%
on an annual basis in June against forecasts for a 1.9% increase, while the
closely watched services inflation came in at 5.7%. Core inflation, however,
was in line with expectations.
AT HOME
After rising three tenth
of a percent, benchmark indices cooled off to end higher by 0.1%, extending the
winning streak to third straight session and hitting fresh record highs. Sensex
settled at 80716, up 51 points while Nifty added 26 points to finish at 24613.
Nifty mid-cap index was absolutely flat while small-cap index inched up 0.1%. Nifty
Realty and FMCG indices climbed 1.7% and 1% respectively, becoming top gainers
among sectoral indices while Media index was the top loser, down 1%, followed
by 0.4% lower Healthcare and Pharma indices.
FIIs net bought stocks
worth Rs 1271 cr but net sold index futures and stock futures worth Rs 58 cr
and 3335 cr respectively. DIIs were net sellers to the tune of Rs 529 cr.
Rupee appreciated 1 paise
to end at 83.58/$.
Asian Paints reported
weaker-than-expected first quarter with margins hitting multi-quarter low and
tough demand conditions resulted in drop in revenue.
OUTLOOK
Japan’s exports rose 5.4%
y-o-y in June, a steep decline from 13.5% in May. Imports grew 3.2%, down from
9.5% in May. Both exports and imports missed expectations of 6.4% and 9.3%
growth, respectively. Trade balance reversed from a 1.2 trillion yen deficit in
May, or $7.7 billion, to a 224 billion yen surplus.
Today morning, Nikkei is
down 1.8% while Shanghai and Hang Seng are off 0.5% and 0.1% respectively. GIFT
Nifty is suggesting a marginally higher start for our market.
In Tuesday's report we
had said that 24750-24800 continued to be next target zone for Nifty while
24400-34350 was the immediate support zone, with the stop-loss which, trading
longs can be held on to.
Nifty, after touching a
high of 24661, eased to end at 24613.
24750-24800 continues to
be next target zone for Nifty; 24450 is the immediate support on the hourly,
with the stop-loss which, trading longs could 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 51200, 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.
Infosys will report its quarterly earnings today.
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