SGX Nifty in early action is chugging slowly and steadily as capturing positive sentiments are joyful mood at Wall Street in Monday's trade where major indices edged higher after treading water for most of the session.
Well, bullish traders at Wall Street are taking Fed's Chief message as license to buy all stocks. Long story short: Jerome Powell's telegraphed wired message is signaling rate cuts on July 31st.
7 AM GLOBAL UPDATE:
DOW (+27, 27359)
NASDAQ (+14, 8258)
SGX NIFTY (-8, 11579)
NIKKEI (-106, 21579)
HANG SENG (+29, 28584)
BOVESPA (-103, 103802)
OIL (-0.20, $59.52)
GOLD (+0, $1412)
SUCCESSFUL INVESTING IS ANTICIPATING THE TRENDS OF:
NIFTY’s CRUCIAL LEVELS:
Nifty’s CURRENT MARKET PRICE: 11,588.
Medium Term: 11,287/11101.
Long Term: 10,751.
Medium Term: 11939/12107.
Long Term: 12,501.
Medium Term: 11287-12105.
Long Term: 10751-12501.
Medium Term: Neutral.
Long Term: Positive.
Our call of the day suggests Dalal Street will meander around the break-even line for much of Tuesday's trading session. Well, if Nifty moves above the key hurdles at 11661 mark then it's safe to assume the old adage is again at works — Don’t fight the Fed.
Our chart of the day suggests establishing short position in stocks like ASHOK LEYLAND, EICHER MOTORS & UNION BANK OF INDIA on any early strength with interweek perspective.
IMPORTANT THEMES FOR THE DAY:
The biggest theme catching attention in today's trade is that "China Second Quarter GDP Growth Slows To 27-Year Low". Interestingly, President Donald Trump was seen taking credit for China's slowdown, saying China's slowdown would lead to more favorable trading terms with the world’s second-largest economy.
But we suspect, stock markets around world could take lower Chinese GDP as a positive catalyst as traders anticipate a further round of monetary-policy stimulus from Beijing’s central bank primarily to help soften the impact of a relatively weak GDP print.
Amidst this backdrop, metals could shine at Dalal Street in near term.
Now here are the other catalysts catching our attention this Tuesday morning:
• Amidst trade tensions, India's June exports falls 9.7% to $25 billion.
• Wholesale price-based inflation declined for the second consecutive month to its 23-month low of 2.02% in June.
• Ashok Leyland temporarily shuts Pantnagar plant for nine days over weak demand.
• DHFL Says Lenders Will Not Have To Take A Haircut, Shares Plunge 30%. DHFL: No F&O contracts to be made available for trading in equity segment from September 27 onwards.
• Technically, hurdles for Nifty at 11,661 mark while downside risk seen at 11,471 mark.
• On derivative front, Maximum Call open interest (OI) of 32 lakh contracts were seen at the 12,000 strike price. It will act as a crucial resistance level for the July series. while Maximum Put open interest of 24 lakh contracts were seen at 11,300 strike price. This 11,300 mark on Nifty will act as a crucial support level for the July series.
• Oil prices hover near $60 a barrel.
• FIIs were again net sellers in Monday's trade to the tune of 216.44 crores.
• Stocks banned in F&O segment: DHFL, IDBI, RELCAP, RELINFRA.
• Q1 results to trickle in on Tuesday: HDFC AMC, DHANLAXMI BANK, TV18BRDCST, FEDERALBANK, DCB BANK.
Outlook for Tuesday: Consolidation day likely.