STAY LONG WITH THE STOP-LOSS OF 24750

 

STAY LONG WITH THE STOP-LOSS OF 24750

 

WORLD MARKETS

 

U.S. indices tumbled 1.2%-2.3% after some fresh data stoked fears over a possible recession.

 

Initial jobless claims surged to 249,000 for the week that ended July 27, the most since August 2023. The ISM manufacturing index, a barometer of factory activity in the U.S., came in at 46.8, worse than expected 48.9 and contracting for a fourth consecutive month.

 

The Bank of England cut rates by a quarter-point to 5% from a 16-year high of 5.25% with a five to four majority.

 

U.S. 10-year treasury yield fell 6 bps to 3.978%, its lowest level since Feb. 2. Dollar index rose 0.3% to 104.34. Gold fell 0.2% to $2441 per ounce.

 

WTI crude futures fell 2% to $76.31 while Brent futures fell 1.6% to $79.52 per barrel.

 

European markets fell 1%-2.7%.

 

AT HOME

 

Sensex and Nifty gained a fifth of a percent each, extending the winning streak to fifth straight session and hitting fresh record highs. Sensex settled at 81867, up 126 points while Nifty added 60 points to finish at 25010. Nifty mid-cap and small-cap indices however fell 0.8% and 1% respectively, with the former snapping a 4-session winning streak. Nifty Media and Realty indices tumbled 1.9% and 1.7% respectively, becoming top losers among the sectoral indices while Oil & Gas and Healthcare indices were the top gainers, up 0.4% and 0.3% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2089 cr, 1390 cr and 1627 cr respectively.

 

Rupee ended flat at 83.72/$.

 

ITC's cigarette volumes were in-line with expectations however paper business revenue was a miss. Tata Motors beat estimates but outlook on global demand and JLR was cautious.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are nearly down 4% and 2% respectively while Shanghai is off 0.3%. GIFT Nifty is suggesting nearly 200 points gap-down 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 24750-24700 was the immediate support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty touched a high of 25078 before closing at 25010. The benchmark is set to open below 24900 today.

 

25400 followed by 25600, continue to be next upside targets to eye for Nifty; 24750 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

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

 

Titan and Britannia will report their quarterly earnings today.

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