STAY LONG WITH THE STOP-LOSS OF 9225

STAY LONG WITH THE STOP-LOSS OF 9225

WORLD MARKETS                             

While Dow lost 0.1%, S & P 500 and Nasdaq gained 0.2% and 0.7% respectively yesterday with the later closing at record high.

Banking stocks whipsawed after President Trump, in a media interaction, said he is looking at breaking up the big banks.

The ISM manufacturing index slipped to 54.8 in April from 57.2 and came in below consensus. Construction spending in March fell from a record high. The Commerce Department said consumer spending remained flat in March, while personal income rose less than expected.

WTI crude fell 1% to $48.84 and Brent lost 53 cents to $51.52 a barrel.

Meanwhile, lawmakers reached a deal Sunday to keep the government funded for the next five months.

European markets were shut yesterday for Labor Day.

AT HOME

Benchmark indices ended lower by four tenth of a percent on the last trading day of the month and week and ahead of a long weekend. Sensex lost 111 points to settle at 29918 while Nifty finished at 9304, down 38 points. BSE mid-cap and small-cap indices however, gained 0.2% and 0.6% respectively. BSE Realty and FMCG indices tumbled 1.8% and 1.2% respectively, becoming top losers among the sectoral indices while Metal index climbed 1.5%, becoming top gainer, followed by 0.6% rise in Auto index.

Rupee depreciated 14 paise to end at 64.53/$.

For the week, Sensex and Nifty gained 1.9% and 2% respectively, breaking 2-week losing streak.

India's core sector, comprising of eight core industries, grew by 5% in March, up from 1% in February.

Maruti Suzuki reported 23.4% jump in April sales at 1.44 lac units. Tata Motors reported a 21% fall at 30972 units. Eicher Motor reported 25% growth in Royal Enfield sales at 60142 units.

For the month of April, Sensex and Nifty gained 1% and 1.4% respectively, extending the winning streak to fourth consecutive month.

OUTLOOK

Today morning, except a 0.3% lower Shanghai, other Asian markets are trading with gains of 0.3%-0.8% and SGX Nifty is suggesting about 25 points higher start for our market.

After Nifty crossed the immediate hurdle of 9200, we had given targets of 9273, 9350 and 9470 and have been asking holding on to long positions with a trailing stop-loss.

Nifty last week, touched a high of 9367 before closing at 9304, achieving the 9350 target.

9367 is the immediate hurdle above which 9470 would be the next major target to eye.

9250-9225, the gap created by the gap up opening last Tuesday, is the immediate support area, with the stop-loss of which, trading longs should be held on to.

Marico will report its quarterly earnings today.