Daily Market Outlook-1st August 2014-Addition of the fresh Argentina’s default concerns along with the ongoing concerns in Gaza and Ukraine, But Asian markets are not too much worried…

Greetings,

Addition of the fresh Argentina’s default concerns along with the ongoing concerns in Gaza and Ukraine, But Asian markets are not too much worried…

Global Market Update:-

U.S. stocks dropped on Thursday on concerns that labor costs are on the rise in the U.S. while fears that Argentina’s default on its debts may roil markets with contagion fears adding to the selloff.

At the close of U.S. trading, the Dow  fell 1.88%, the S&P index fell 2.00%, while the NASDAQ  index fell 2.09%. Argentina earlier failed to agree to debt restructuring terms with creditors and fell into its second default since 2002, which sent stocks prices tumbling despite solid U.S. data.

Fears the Argentine default will roil markets already sensitive to conflict in Ukraine, Gaza and elsewhere in the Middle East bruised all three major indices.

Rising labor costs in the U.S. exacerbated the meltdown by reminding investors interest rates will go up in the U.S. possibly at a time when the global economy faces clouds on its horizon.

European indices, meanwhile, ended the day lower.

After the close of European trade, the France’s CAC  fell 1.53%, while Germany’s DAX fell 1.94%. Meanwhile, in the U.K. the FTSE fell 0.64%.

Indian Market Update:-

Indian markets witnessed a week expiry closing indicating the bad start for the august expiry. For the first time its been observed that large selling coming from FII desk of more than 1600 crores is a negative signal to the Indian Markets. However, Nifty is giving all the gains whenever it approaches 7800 mark which is a stiff resistance and 7650 mark for the day acts as a stiff support breaking below can take the index straight down to 7390 levels. Today being the week end advice the clients to wait and watch before creating any fresh positions.

But, Asian indices are not too much worried of what is going in the west where as the western markets have retreated around 2-8%, but Asian markets are trading flat. So it is better to wait and watch for the day ahead of week end and Important data to be released from the US after markets.

Nifty support and Resistance:-

Nifty spot support at 7730 and Resistance 7830  for the day

FII and DII Activity:-

FII sold around 1654 crores worth of stocks in Equity and DII added 1420 crores in Equity.

Macro-Economic Data:-

On Friday, markets will move on the U.S. nonfarm payrolls and the unemployment reports, while the Institute of Supply Management is to release data on manufacturing activity.

Conclusion:-

Just wait and watch for the week end trade ahead of Un-employment report and ADP non farm payroll data…

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