NIFTY TAKES OUT 20-DMA HURDLE; STAY LONG WITH THE STOP-LOSS OF 10670

NIFTY TAKES OUT 20-DMA HURDLE; STAY LONG WITH THE STOP-LOSS OF 10670

WORLD MARKETS

US markets were shut yesterday for Independence Day.

In Europe, CAC was up 0.1% but FTSE and DAX fell 0.3% each. Technology stocks led the losses after a slide in U.S. chip makers in the previous session.

Britain's IHS Markit services PMI rose to an eight-month high of 55.1 in June, further supporting recent signs of the U.K.'s tentative economic recovery. For Germany, Markit's final services PMI rose to 54.1 in June, climbing to its highest level in four months.

Chinese yuan appreciated after notching an 11-month low against the dollar earlier this week. The stabilization in the currency came after the People's Bank of China reassured markets about the currency.

AT HOME

After falling about a fifth of a percent in the initial trade, benchmark indices surged just under a percent from the bottom of the day to end higher by about seven tenth of a percent. Sensex settled at 35645, up 267 points while Nifty added 70 points to finish at 10770. BSE mid-cap index however fell 0.2% while small-cap index gained 0.4%. BSE Auto and Energy indices were the top gainers among the sectoral indices, rising 1.3% and 1% respectively while IT and Teck indices were the top losers, down 0.6% each, followed by 0.5% lower Power and Consumer Durable indices.

FIIs net sold stocks and index futures worth Rs 285 cr and 550 cr respectively but net bought stock futures worth Rs 94 cr. DIIs were net buyers to the tune of Rs 611 cr.

Rupee depreciated 16 paise to end at 68.73/$.

The Union Cabinet approved the proposal to hike minimum support price (MSP) for all Kharif crops by 1.5 times of the input cost for the 2018-19 season.

Nikkei India Services Business Activity Index rose to 52.6 in June from 49.6 in May, marking a 12-month high. Composite PMI Output Index, has risen to 53.3 in June from 50.4 in May.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

Nifty yesterday soared 70 points to end at 10770, taking out the 20-DMA hurdle placed at 10750 decisively.

As mentioned yesterday, 10840, the top made on June 22nd, is the next target as well as hurdle to eye. Above 10840, 10900-10930 would be the tougher resistance zone to tackle.

Meanwhile, immediate support on the hourly chart is placed around 10670, with the stop-loss of which, trading longs should be held on to.