On Wednesday, Dow and S & P 500 rose 0.6% and 0.4% respectively while Nasdaq ended flat. Consumer prices increased 2.9% y-o-y, down from 3% in June and the lowest reading since March 2021. Month-over-month, prices ticked up 0.2%. Economists expected a 0.2% increase from the prior month and a 3% gain year-over-year.

Yesterday, U.S. indices gained 1.4%-2.3% as encouraging consumer and labor data helped ease recession worries. S & P 500 and Nasdaq notched six-day winning streak.

Retail sales increased 1% in July, far surpassing expected 0.3% uptick. Also separately, weekly jobless claims fell for the week.

Walmart surged 7% as it raised outlook and an earnings report topped analyst estimates.  Cisco Systems jumped 7% after announcing a fiscal fourth-quarter earnings and revenue beat and cuts to its global workforce.

U.S. 10-year treasury yield rose 8 bps to 3.915%. Dollar index jumped half a percent to 103.04. Gold rose 0.4% to $2457 per ounce.

WTI crude futures rose 1.5% to $78.16 while Brent futures rose 1.6% to $81.04 per barrel.

European markets gained 0.8%-1.7%. U.K. GDP data showed the economy expanded 0.6% in the second quarter, in line with expectations.

Benchmark indices ended flat to marginally higher after a rangebound session. Sensex settled at 79105, up 150 points while Nifty inched up 5 points to finish at 24144. Nifty mid-cap and small-cap indices fell 0.6% each. Nifty IT index surged 1.6%, becoming top gainer among the sectoral indices, followed by 0.1% higher Consumer Durables index. Metal and Media indices were the top losers, down 1.3% and 1.1% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 2595 cr, 769 cr and 1683 cr respectively. DIIs were net buyers to the tune of Rs 2236 cr.

Rupee appreciated 2 paise to end at 83.95/$.

Today morning, Nikkei and Hang Seng are up 3% and 1.7% respectively, Shanghai is up 0.4% and GIFT Nifty is suggesting around 170 points higher start for our market.

In Wednesday's report we had said that 23893, the bottom made last week, continued to be important immediate support while 20-DMA, placed around 24500, continued to be immediate hurdle.

Nifty ended flat at 24143 and is set to open near 24300 today.

20-DMA, placed around 24500, continues to be immediate hurdle; 23893, the bottom made last week, continues to be important immediate support.

For Banknifty, 48860, the 61.8% retracement level of the upmove seen since the election result day bottom, is the next downside level to eye. On the way up 50300 is the immediate hurdle.