News & Impact
· Focus Today – (Trend Positive – Technically, Nifty close above 24400 level, indicating positive trend. Gift Nifty up 50 points or 0.2%. ) - US Dow Future is up 0.3% ahead of Federal Reserve's favored inflation indicator -- the core PCE price index data today. US market ended mixed bag after strong Q2 GDP data at 2.8% (previous quarter 1.4%) - US Fed may delay rate cut after announced strong GDP data. Ramco Cement, PNB Housing, Jyothy Labs, Tech Mahindra, AU Small Finance Bank announced impressive quarterly results. Nestle and Ashok Leyland reported lower than expected Q1 results. Results Cipla (Today), Indusind Bank, Shriram Finance, Power Grid. ICICI and MCX tomorrow. Sjvn and Rites won large order.
· Today’s Market Outlook – Positive opening in the Asian market, falling crude oil price to nearly 2-month low, impressive quarterly results, smart gain US Index ahead of PCE (Personal Consumption Data) and strong growth in the manufacturing PMI sectors in India to 3-month high, indicating to open domestic bourses on a positive note. In the US market, U.S. stocks ended mixed and Treasury yields finished mostly lower after data showed the U.S. economy had surprising strength in the second quarter. The dollar crept higher and gold settled lower after the strong Q2 GDP data raised concerns over higher-for-longer U.S. interest rates. US Nasdaq dropped 1.2% but Dow Jones advance 0.5% after Q2 GDP data reported at 2.8% while expectation was 2%. Market expect that the Fed may delay rate cut after reported strong Q2 GDP data.
· Domestic Market Trend and sector to be focus – Good quarterly may support domestic equity market. Yesterday, Nifty ended flat and recovered smartly from the intra-day lower as buying interest in capital goods, healthcare, IT, oil & gas, and auto stocks. Expect positive for metal stocks after US reported strong GDP data. Capital Goods and IT stocks may positive after reported good quarterly results announced by L&T and Tech Mahindra. Pharma stocks may positive on hope off good quarterly results.
· US Market Update – US stocks ended mixed bag as data showing the US economy is still strong eased fears the Federal Reserve would rush to cut rates to prevent a recession. Nasdaq Composite slipped over 1% while Dow Jones Index gained 0.5%. US GDP growth accelerated by more than forecast in the second quarter. Gross domestic product increased at a 2.8% (expectation 2%) while previous quarter was 1.4%. Personal spending also rose more than predicted.
· Asian Market –Equities showed signs of recovery as traders balanced resilience in the US economy with firming expectations of Federal Reserve cuts in coming months. Stocks in Australia and South Korea climbed along with futures contracts for US equities on Friday. Japanese equities inched higher with the yen resuming a rally ahead of next week’s Bank of Japan meeting.
· European Market –European stock exchanges closed lower on Thursday, except in the UK. Both France and Germany Index slipped 1% and 0.5% respectively after weak quarterly results announced Tesla and Alphabet.
· Gold – Gold fell by 1.5% to a two-week low at $2360/ounc as a better-than-estimated US economic report helped ease expectations that the Federal Reserve needs to cut interest rates soon to prevent a recession.
· Brent Crude – Oil prices weakened early on Thursday as worries over the health of Chinese demand offset falling U.S. inventories, while a report showed the U.S. economy grew at a faster than expected pace in the second quarter. Brent Crude declined marginally to $82/bbl
· Nifty Technical Levels – Nifty remained positive to range bound in the second half of the session and managed to close above 24400 as bulls were active to absorb any minor dip. It formed a Bullish candle on daily frame but continues forming lower highs from the last four sessions. Now it has to hold 24350 zones for an up move towards 24550 and 24700 zones whereas supports are placed at 24200 then 24100 zones.
By: via AlliesFinServe #StockMarket #Bharat Telegram.me/AlliesFin
