NIFTY ON TRACK TO ACHIEVE 9725 TARGET; TRAIL STOP-LOSS TO 9580

NIFTY ON TRACK TO ACHIEVE 9725 TARGET; TRAIL STOP-LOSS TO 9580

WORLD MARKETS                             

US indices ended with cuts of 0.1%-0.2%

IHS Markit U.S. services PMI for May came in at 53.6, up from 53.1 in April. The May ISM nonmanufacturing index, came in at 56.9, just below a consensus estimate of 57.0.

The dollar index hit its lowest level since the November U.S. election on Monday after a jobs report Friday came in lower-than-expected.

Brent crude fell 1.5% to $49.21 while US crude fell 1.2% to $47.08 a barrel. The commodity was initially up following news that Saudi Arabia and other countries in the Middle East had severed diplomatic ties with Qatar. Qatar is the world's largest liquefied natural gas (LNG) exporter.

European markets fell 0.2%-1% with Italy leading the losses. Car sales in the U.K. dropped 8.5% in May after a tax increase came into effect in April.

AT HOME

Benchmark indices ended with modest gains to notch fresh record intraday as well as closing high. Sensex added 36 points to settle at 31309 while Nifty finished at 9675, up 22 points. BSE mid-cap and small-cap indices gained 0.2% and 0.6% respectively. BSE Consumer Durable index climbed 5.8%, becoming top gainer among the sectoral indices, followed by 1% each gain in Realty and Consumer Discretionary Goods & Services indices. Metal and Utilities indices were the top losers, down 0.6% and 0.3% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 477 cr, 195 cr and 477 cr respectively. DIIs were net buyers to the tune of Rs 14 cr.

Rupee appreciated 7 paise to end at 64.37/$, a three-week high.

India's Nikkei/IHS Markit Services PMI rose to a seven-month high of 52.2 in May, from April's 50.2.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto half a percent but SGX Nifty is suggesting a marginally higher start for our market.

Nifty yesterday touched a high of 9687 before closing at 9675, moving towards the 9725 target area we have been working ever since 9530 hurdle was taken out.

9725 continues to be immediate upside target to eye.

Immediate support on the hourly chart has moved up to 9580, with the stop-loss of which trading longs should be held on to.