23893 CONTINUES TO BE IMMEDIATE SUPPORT; 24700-24750 IMMEDIATE RESISTANCE ZONE

 

23893 CONTINUES TO BE IMMEDIATE SUPPORT; 24700-24750 IMMEDIATE RESISTANCE ZONE

 

WORLD MARKETS

 

Dow rose 0.8% while S & P 500 and Nasdaq gained 1% each, all snapping a 3-day losing streak.

 

The Commerce Department reported that the U.S. trade deficit fell less than expected in June.

 

Fed Presidents of San Francisco and Chicago both gave indications that rate cuts are on the horizon without specifying when and to what degree.

 

U.S. 10-year treasury yield rose 10 bps to 3.896%. Dollar index rose quarter of a percent to 102.93. Gold fell 0.8% to $2389 per ounce.

 

WTI crude futures rose 0.4% to $73.20 while Brent futures rose 0.2% to $76.48 per barrel.

 

In Europe, FTSE and DAX inched up 0.2% and 0.1% respectively while CAC fell 0.3%.

 

The Nikkei 225 posted its best day since October 2008, soaring 10.2%.

 

AT HOME

 

After opening higher by a percent and fourth, benchmark indices, gave away all the gains and some more through the session to end lower by quarter of a percent, extending the losing streak to third straight session. Sensex settled at 78593, down 166 points while Nifty lost 63 points to finish at 23992. Nifty mid-cap and small-cap indices fell 0.6% and 0.4% respectively, extending the losing streak to fourth and fifth consecutive day respectively. Nifty Financial Services and PSU Bank indices were the top losers among the sectoral indices, down 1.4% and 1.3% respectively whereas Realty and IT indices were the top gainers, up 0.8% and 0.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3531 cr, 2031 cr and 1309 cr respectively. DIIs were net buyers to the tune of Rs 3357 cr.

 

Rupee depreciated 11 paise to end at 83.95/$.

 

OUTLOOK

 

Today morning, Nikkei is up nearly 3%, Hang Seng is up 1% and Shanghai is up 0.3%. GIFT Nifty is suggesting around 200 points higher start for our market.

 

In yesterday's report we had said that 23893, the low made Monday, was the immediate support while 24700-24750 is the immediate resistance zone, with the stop-loss of which, trading shorts could be held on to.

 

Nifty, after starting at 24382, slipped to end at 23992.

 

23893, the low made Monday, continues to be immediate support, upon breach of which, 23627, the 38.2% retracement level of the upmove seen since election result day bottom, would be the next downside level to eye; 24700-24750 continues to be immediate resistance zone.

 

For Banknifty, 48860, the 61.8% retracement levels of the upmove seen since election result day bottom, is the next downside levels to eye; 51000 is immediate hurdle.

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