NIFTY ACHIEVES 20-DMA TARGET; TRAIL STOP-LOSS TO 10775

NIFTY ACHIEVES 20-DMA TARGET; TRAIL STOP-LOSS TO 10775

WORLD MARKETS

US indices fell 0.1%-0.2% on concerns over U.S.-China trade talks.

Trump said he doubted high-level U.S.-China trade negotiations would be successful as China, and other U.S. trading partners, had "become very spoiled." His comments came as a second round of the bilateral talks began in Washington on Thursday.

The yield on the 10-year U.S. Treasury note climbed to 3.122% — its highest level since August 2008.

Brent, after hitting a high of $80.50 a barrel, eased to end 9 cents lower at $79.19. US oil ended flat at $71.49 after hitting a high of $72.30.

European markets gained 0.3%-1%.

AT HOME

Sensex and Nifty fell 0.7% and 0.5% respectively, extending the losing streak to third straight day. Sensex lost 239 points to settle at 35149 while Nifty finished at 10682, down 58 points. BSE mid-cap and small-cap indices however gained 0.7% and 0.4% respectively. BSE FMCG index tumbled 0.9%, becoming top losers among the sectoral indices followed by 0.6% lower Bankex and Metal indices. Consumer Durable index surged 1.4%, becoming top gainer, followed by 0.4% higher Realty and Telecom indices.

FIIs net sold stocks, index futures and stock futures worth Rs 831 cr, 30 cr and 244 cr respectively. DIIs were net buyers to the tune of Rs 429 cr.

Rupee appreciated 9 paise to end at 67.70/$.

Bajaj Finance soared 7.7% after reporting stellar set of earnings. Net profit surged 61% y-o-y to Rs 721 cr and NII soared 40% to Rs 2365 cr. Asset quality improved with Gross NPA ratio down to 1.48% from 1.67% q-o-q and net NPA ratio at 0.38% from 0.53%.

OUTLOOK

Today morning, Shanghai is flat while Nikkei and Hang Seng are up 0.5% and 0.3% respectively. SGX Nifty is suggesting about 30 points lower start for our market.

After Nifty broke the immediate support of 10760, we had given downside target of 20-DMA, which was placed around 10680 and had also said that below 10680, next downside target would be 10600.

Nifty yesterday touched a low of 10664 before closing at 10682 and is set to open around 10650 today.

10600, the bottom made in early May, is the next downside target as well as the support.

10775 is the immediate resistance, with the stop-loss of which, trading shorts should be held on to.

Bajaj Auto and Ashok Leyland will report their quarterly earnings today.