10840 CONTINUES TO BE UPSIDE TARGET; TRAIL STOP-LOSS TO 10710

10840 CONTINUES TO BE UPSIDE TARGET; TRAIL STOP-LOSS TO 10710

WORLD MARKETS

US indices gained 0.4%-1.3% on Friday as stronger-than-expected employment data overshadowed trader war concerns.

The U.S. economy added 213,000 jobs in June as against expectation of a gain of 195,000. Unemployment, however, rose slightly to 4% percent from 3.8%. Wage growth also missed expectations, climbing 2.7% on a y-o-y basis, as against expected growth of 2.8%.

U.S. tariffs on $34 billion of Chinese goods came into effect earlier on Friday. China responded to the fresh tariffs by imposing its own retaliatory levies on imports from the States.

European markets rose upto 0.4%.  British Prime Minister Theresa May last week won agreement from her cabinet to remain in a free trade area for goods with the European Union, which markets see as a "soft Brexit.

For the week, US indices gained 0.8%-2.4% with Nasdaq on the top. In Europe, FTSE fell 0.2% but CAC and DAX rose 1% and 1.6% respectively. Asian markets ended with deep cuts with Shanghai down 3.5% and Hang Seng and Nikkei down 2.2% each.

AT HOME

After gaining more than half a percent, benchmark indices gave away most of the gains in last hour plunge to end higher by just a fifth of a percent. Sensex settled at 35658, up 83 points while Nifty added 23 points to finish at 10773. BSE mid-cap and small-cap indices gained 0.6% and 0.5% respectively. BSE Industrial and Realty indices climbed 1.5% and 1.3% respectively, becoming top gainers among the sectoral indices while Healthcare and Consumer Durable indices were the top losers, down 0.8% and 0.2% respectively.

FIIs net sold stocks worth Rs 968 cr but net bought index futures and stock futures worth Rs 156 cr and 480 cr respectively. DIIs were net buyers to the tune of Rs 1481 cr.

Rupee appreciated 7 paise to end at 68.87/$.

For the week, Sensex and Nifty gained 0.7% and 0.6% respectively.

OUTLOOK

Today morning, Hang Seng, Nikkei and Shanghai all are up a percent each and SGX Nifty is suggesting about 50 points higher start for our market.

Readers would recall that after Nifty took out the 20-DMA hurdle placed around 10745, we have been working with upside target of 10840, which was the top made on 22nd June.

Nifty, after touching a high of 10816 on Friday, eased to end at 10772 but is set to open above 10800 today.

10840 continues to be immediate upside target above which 10900-10930 would be the next major resistance area to watch.

Meanwhile, immediate support on the hourly chart has moved up to 10710, with the stop-loss of which, trading long should be held on to.