NIFTY RETREATS AFTER ACHIEVING 10630 TARGET; TRAIL STOP-LOSS TO 10515
S & P 500 ended flat while Dow and Nasdaq, pressured by rising rates and weak technology stocks, fell 0.1% and 0.2% respectively. Dow had its first four-day losing streak since March.
The 10-year Treasury note yield hit a high of 2.99%, the highest since January 2014. Dollar index rose about two third of a percent to 90.93, the highest level in nearly 3-months.
Oil prices rose with WTI up 24 cents to $68.64 and Brent up 65 cents to $74.71 a barrel.
Aluminium nosedived nearly 10% and Alcoa plunged 13.5% after the U.S. government said it would not impose previously announced sanctions against Rusal until October.
European markets gained 0.2%-0.6%.
After gaining about seven tenth of a percent, benchmark indices saw a sharp dip in late noon trade to end with just modest gains. Sensex settled 35 points higher at 34451 while Nifty finished at 10584, up 20 points. BSE mid-cap and small-cap indices climbed half a percent each. BSE Realty and Healthcare indices rose 1.8% and 1.3% respectively, becoming top gainers among sectoral indices while Metal and FMCG indices were the top losers, down 0.9% and 0.4% respectively.
FIIs net sold stocks and stock futures worth Rs 259 cr and 130 cr respectively but net bought index futures worth Rs 177 cr. DIIs were net buyers to the tune of Rs 387 cr.
Rupee depreciated 36 paise to end at 66.48/$, extending the losing streak to sixth straight day.
Today morning, Asian markets are trading with gains of 0.4%-0.6% and SGX Nifty is suggesting about 35 points lower start for our market.
After Nifty achieved 10560 target, we had given next target of 10630, in the vicinity of which couple of tops made in February were placed.
Yesterday, Nifty, after touching a high of 10638, slipped to end at 10584 and is set to open around 10550 today.
10515, the bottom made yesterday, is now the immediate support, a breach of which will generate a "sell" on the hourly chart and would pave the way for further correction.
10638, the top made yesterday, is the immediate hurdle, upon crossover of which, 10700, the 61.8% retracement level of the entire 11171-9951 fall, would be the next target to eye.
Traders are advised to trail stop-loss in long positions to 10515.
Bharti Airtel will report its quarterly earnings today.