20-DMA RESISTANCE AROUND 24550; 23893 CONTINUES TO BE IMMEDIATE SUPPORT

 

20-DMA RESISTANCE AROUND 24550; 23893 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow inched up 0.1% while S & P 500 and Nasdaq gained half a percent each on Friday.

 

U.S. 10-year treasury yield fell 4 bps to 3.944%. Dollar index fell 0.1% to 103.15. Gold rose 0.2% to $2431 per ounce.

 

WTI crude futures rose 0.8% to $76.84 while Brent futures rose 0.6% to $79.66 per barrel.

 

European markets gained 0.1%-0.8%.

 

China’s consumer price index for July rose 0.5% y-o-y, up from 0.2% rise in June and beating estimates of a 0.3% rise. The producer price index fell by 0.8%, slightly less than the 0.9% forecast decline, and unchanged from June’s 0.8% drop.

 

AT HOME

 

Benchmark indices surged 1% each. Sensex settled at 79705, up 819 points while Nifty added 250 points to finish at 24367. Nifty mid-cap and small-cap indices gained 0.9% and 0.6% respectively. All the NSE sectoral indices ended higher, with PSU Bank and Media indices on the top, up 1.9% and 1.8% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 407 cr, 461 cr and 3665 cr respectively. DIIs were net buyers to the tune of Rs 3980 cr.

 

Rupee was little changed at 83.9550/$.

 

For the week, Sensex and Nifty fell 1.6% and 1.4% respectively, extending the losing streak to second straight week.

 

OUTLOOK

 

Today morning, Nikkei is up half a percent, Shanghai is flat while Hang Seng is modestly lower. GIFT Nifty is suggesting around 50 points lower start for our market.

 

In Friday's report we had said that 20-DMA, placed around 24550, was the immediate hurdle while 23893, the low made Monday, continued to be immediate support.

 

Nifty rose to touch a high of 24420 before closing at 24367.

 

20-DMA, placed around 24550, is the immediate hurdle, upon crossover of which, 24686, the upper end of the gap created by last Monday’s gap-down opening, would be next upside level/resistance to eye. On the way down, 23893, the bottom made last week, is the important support.

 

For Banknifty, 49659, the low made last week, which coincided with 20-week moving average, is the immediate support, upon breach of which, 48860, the 61.8% retracement level of the upmove seen since the election result day bottom, would be the next downside level to eye. On the way up 21087, the upper end of the gap created by last Monday's gap-down opening, is the immediate hurdle, upon crossover of which, 34-DMA, placed around 21850, would be next upside target/resistance to eye.

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