9710 CONTINUES TO BE HURDLE; 9530 IMMEDIATE SUPPORT

9710 CONTINUES TO BE HURDLE; 9530 IMMEDIATE SUPPORT

WORLD MARKETS                             

US markets were shut yesterday for the Independence Day holiday.

European markets, except a 0.1% higher Italy, fell 0.3%-0.4% amid geopolitical concerns.

North Korea claimed the missile it had launched yesterday was an intercontinental ballistic missile capable of carrying a heavy nuclear warhead. The missile had landed in Japan's exclusive economic zone (EEZ).

Japanese Prime Minister Shinzo Abe condemned the attack and called on Chinese and Russian leaders to do more to deal with North Korea's weapons program.

South Korea and the U.S. have responded to the North's missile launch by conducting an offensive ballistic missile drill.

AT HOME

Benchmark indices ended marginally in the red after a rangebound but choppy session. Sensex settled at 31210, down 12 points while Nifty lost 2 points to finish at 9613. BSE mid-cap and small-cap indices lost 0.3% and 0.04% respectively. BSE Energy and Oil & Gas indices gained 1.4% and 0.6% respectively, becoming top gainers among sectoral indices while Healthcare, FMCG and Telecom indices lost 0.7% each, becoming top losers.

FIIs net sold stocks worth Rs 834 cr but net bought index futures and stock futures worth Rs 147 cr and 152 cr respectively. DIIs were net buyers to the tune of Rs 296 cr.

Rupee appreciated 14 paise to end at 64.74/$.

Metropolitan Stock Exchange (erstwhile MCX-SX) said it will extend the closing time of trading hours on its equity capital market segment to 5 pm from 3.30 pm earlier with effect from Friday.

OUTLOOK

Today morning, Asian markets are trading with modest cuts and SGX Nifty is suggesting a flattish start for our market.

After Nifty crossed the immediate hurdle of 9576, we were working with 9710 as the next upside target. Yesterday, Nifty, after touching a high of 9651, slipped to end at 9613.

9710, the top made in June, continues to be upside target/hurdle to eye, a crossover of which is required for a fresh upmove.

9530 is the immediate support on the hourly chart, with the stop-loss of which existing longs should be held on to.