12041 CONTINUES TO BE IMMEDIATE HURDLE; TRAIL STOP-LOSS TO 11836

12041 CONTINUES TO BE IMMEDIATE HURDLE; TRAIL STOP-LOSS TO 11836

WORLD MARKETS

US indices gained 0.2%-0.3%, rebounding from previous sessions' losses, but gains were kept in check as worries over global economy and trade persisted.

US 10-year treasury yield fell to 2.227%, near 20-month lows.

Media reports suggested that China has halted soy purchases from the U.S. Chinese Vice Foreign Minister Zhang Hanhui said yesterday that provoking trade disputes amounted to “naked economic terrorism.”

In economic news, the second read on first-quarter U.S. GDP showed the economy expanded by 3.1% on an annualized basis, lower than the first estimate of 3.2% but topping estimate of 3%.

US oil tumbled 3.8% to $56.59 and Brent eased 3.9% to $66.54 a barrel after Energy Information Administration (EIA) said crude stockpiles fell nearly 300,000 barrels last week, less than the 900,000-barrel decline forecast.

European markets, except 0.3% lower Italy, rose about half a percent each.

AT HOME

After a flattish start, benchmark indices saw a sustained northward move through the session to end with gains of about three fourth of a percent. Sensex settled at 39831, up 329 points while Nifty added 84 points to finish at 11945. These were the fresh record closing highs for both the indices. BSE mid-cap and small-cap indices however underperformed, rising just 0.3% and 0.1% respectively. BSE Power and Utilities indices climbed 1.6% and 1.5% respectively, becoming top gainers among the sectoral indices while Auto and Realty indices were the top losers, down 0.6% and 0.3% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1665 cr, 2221 cr and 1025 cr respectively. DIIs were net sellers to the tune of Rs 1123 cr.

Rupee depreciated 4 paise to end at 69.87/$.

ONGC's EBITDA and PAT were below expectation while revenue was a beat. Coal India reported better-than-expected numbers.

OUTLOOK

Prime Minister Modi along with 57 ministers took the oath yesterday evening. Significant changes, when compared to his first term, were inclusion of Amit Shah and former foreign secretary S Jaishankar and exclusion of Arun Jaitley, Sushma Swaraj, Suresh prabhu and Jayant Sinha.

First cabinet meeting of new government is scheduled at 5 pm today. Portfolio allocation is also likely to happen today.

Today morning, Nikkei is down about 0.8% while Hang Seng and Shanghai are marginally higher. SGX Nifty is suggesting about 15 points higher start for our market.

As we have been mentioning for past couple of days, 12041 and 11614, the top and bottom made on the election result day, are important support and resistance levels to eye.

Nifty has traded within this range for past five sessions and closed at 11945 after touching a high of 11968 yesterday.

12041 continues to be immediate hurdle to eye, a crossover of which is required for a fresh upmove. If that happens 12500 would be next major target.

11836, the low made Wednesday, is the immediate support below which 11614, the low made on the election result day, would be the crucial support to eye.

Traders are advised to hold long positions with the stop-loss of 11836.

India's Q4 GDP data will be released today and is expected to show a growth of 6.3%, down from 6.6% in the third quarter.

12041-11614 CONTINUES TO BE IMMEDIATE RANGE

12041-11614 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices fell 0.7%-0.9% as falling bond yields triggered concerns about economic outlook and trade tensions between US and China continued to weigh on the sentiment.

The 10-year Treasury note yield fell to its lowest level since September 2017 before rebounding to about 2.26%. A portion of the yield curve further inverted as 3-month Treasury bills last yielded 2.36%.

Meanwhile, a commentary piece in the People’s Daily — the official newspaper of the Communist Party of China - said “We advise the U.S. side not to underestimate the Chinese side’s ability to safeguard its development rights and interests. Don’t say we didn’t warn you!”

US crude fell 0.6% to $58.81 a barrel while Brent fell 0.9% to $69.46.

European markets tumbled 1.2%-1.8% amid worries over the U.S.-China trade war and a potential budget standoff between Italy and the EU. Reports suggested that the EU is considering disciplinary action over the Italian government’s failure to rein in debt.

AT HOME

Benchmark indices fell six tenth of a percent, breaking 3-day winning streak. Sensex lost 247 points to settle at 39502 while Nifty finished at 11861, down 67 points. BSE mid-cap and small-cap indices lost 0.8% and 0.6% respectively. BSE Telecom and Capital Goods indices fell 1.2% and 0.8% respectively, becoming top losers among the sectoral indices while IT and Teck indices soared 1.6% and 1.4% respectively, becoming top gainers.

FIIs net sold stocks, index futures and stock futures worth Rs 304 cr, 734 cr and 792 cr respectively. DIIs were net sellers to the tune of Rs 190 cr.

Rupee depreciated 14 paise to end at 69.83/$.

M & M reported better-than-expected numbers for the March quarter. Revenue rose 4.7% y-o-y to Rs 13808 cr., EBITDA fell 6.4% to Rs 1868 cr, margin contracted 160 bps to 13.5% and net profit slipped 16% to Rs 969 cr.

OUTLOOK

Today morning, Nikkei and Shanghai are off 0.4% each while Hang Seng is up 0.3%. SGX Nifty is suggesting a flattish start for our market.

At the risk of repeating, for past couple of days, we have been mentioning that 12041 and 11614, the top and bottom made on the election result day, are important support and resistance levels to eye and that long positions can be held with the stop-loss of 11614.

Nifty, since then has been trading within these two levels and after touching a high of 11958 on Tuesday, slipped to end at 11861 yesterday.

12041 continues to be immediate hurdle to eye, a crossover of which is required for a fresh upmove. If that happens 12500 would be next major target. 11614 continues to be immediate support, with the stop-loss of which, existing longs should be held on to.

Coal India and ONGC will report their quarterly earnings today.

The big event to watch out today would be portfolio allocation in the second term of Mr. Modi's government. Markets would particularly watch out for new Finance minister, after Mr. Jaitley expressed his inability to join government, citing health reasons.

12041 CONTINUES TO BE IMMEDIATE HURDLE; 11640 IMPORTANT SUPPORT

12041 CONTINUES TO BE IMMEDIATE HURDLE; 11640 IMPORTANT SUPPORT

WORLD MARKETS

US indices fell 0.4%-0.9% on persisting worries over US-China trade war and decline in interest rate which fueled economic slowdown concerns.

Trump said on Monday the U.S. was “not ready” to make a deal with China, before adding he expected one in the future. Trump also said tariffs on Chinese imports could go up “substantially.”

On the other side, a commentary piece in Chinese state-run newspaper Xinhua hinted China would not bend to U.S. demands to change its state-run economy. A Chinese official also hinted on Tuesday China could use its dominance over rare earth metals as leverage in the trade war.

The yield on the benchmark 10-year Treasury note dropped to around 2.26%, its lowest level in 19 months.

US crude rose 59 cents or 0.9% to 59.14 but Brent fell 3 cents to $70.08.

European markets eased 0.1%-0.5%. The GfK consumer sentiment indicator for June hit a worse-than-expected reading of 10.1 points.

AT HOME

After falling about half a percent, benchmark indices recouped all the losses in last hour to end marginally higher. Sensex settled at 39749, up 66 points while Nifty added 4 points to finish at 11928. BSE mid-cap and small-cap indices rose 0.1% and 0.4% respectively. BSE IT and Teck indices climbed 1.6% and 1.4% respectively, becoming top gainers among the sectoral indices while Telecom and Capital Goods indices were the top losers, down 1.2% and 0.8% respectively.

FIIs net sold stocks and index futures worth Rs 501 cr and 947 cr but net bought stock futures worth Rs 133 cr. DIIs were net buyers to the tune of Rs 269 cr.

Rupee depreciated 20 paise to end at 69.69/$.

Sun Pharma missed estimates on all parameters with profits declining by 53% y-o-y to Rs 636 cr. Revenue rose 2.7% to Rs 7164 cr, EBITDA plunged 40% to Rs 1017 cr and margin fell 990 bps to 14.2%. Auropbindo Pharma's topline beat estimate but operational performance and bottomline was a miss. Revenue rose 31% to Rs 5292 cr, EBITDA was up 34% at Rs 1057 cr, margin rose 50 bps to 20% and net profit was up 11% at Rs 585 cr.

OUTLOOK

Today morning, Nikkei is down more than a percent while Hang Seng and Shanghai are off about half a percent. SGX Nifty is suggesting about 30 points lower start for our market.

For past couple of days, we have been mentioning that 12041 and 11614, the top and bottom made on the election result day, are important support and resistance levels to eye and that long positions can be held with the stop-loss of 11614.

Yesterday, after touching an intraday low of 11864, Nifty rebounded to end at 11928 and is set to open modestly lower today.

12041 continues to be immediate hurdle to eye, a crossover of which is required for a fresh upmove. If that happens 12500 would be next major target.

11614 continues to be immediate support, with the stop-loss of which, existing longs should be held on to.

M & M will report its quarterly earnings today.

12041-11614 CONTINUES TO BE IMMEDIATE RANGE

12041-11614 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US markets were shut yesterday to observe Memorial Day.

European markets gained 0.4%-0.6% as an EU Parliament election showed Europhile parties still performing reasonably well despite a rise in support for nationalists. Italy however ended a tad lower after a report Brussels is considering disciplinary action over Rome’s failure to rein in public debt.

US oil rose 59 cents or 1% to $59.24 a barrel while Brent added $1.42 or 2.07% to reach $70.11.

U.S. President Trump is currently in Japan as part of a four-day state visit, where he said during a Monday news conference with Japanese Prime Minister Shinzo Abe that he hoped to announce a trade deal with the country soon.

AT HOME

Benchmark indices gained two-third of a percent, extending Friday's upmove. Sensex added 248 points to settle at 39683 while Nifty finished at 11924, up 80 points. BSE mid-cap and small-cap indices rose 1% and 1.6% respectively. BSE Capital Goods and Power indices soared 3.1% and 2.9% respectively, becoming top gainers among the sectoral indices while Energy and Healthcare indices were the top losers, down 0.8% and 0.3% respectively.

FIIs net bought stocks worth Rs 1215 cr but net sold index futures and stock futures worth Rs 587 cr and 374 cr respectively. DIIs were net sellers to the tune of Rs 328 cr.

Rupee appreciated 3 paise to end at 69.49/$.

OUTLOOK

Today morning, Nikkei is up 0.4% while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had reiterated the view that 12041 and 11614, the top and bottom made on the election result day, are important support and resistance levels to eye and had also advised holding on to long positions with the stop-loss of 11614.

Yesterday, Nifty, after touching a high of 11957, closed at 11924 and is set to open little changed today.

12041 continues to be immediate hurdle to eye, a crossover of which is required for a fresh upmove. If that happens 12500 would be next major target/

11614 continues to be immediate support, with the stop-loss of which, existing longs should be held on to.

12041 CONTINUES TO BE IMMEDIATE HURDLE; 11614 NEAREST SUPPORT

12041 CONTINUES TO BE IMMEDIATE HURDLE; 11614 NEAREST SUPPORT

WORLD MARKETS

Dow rose 0.4% while S & P 500 and Nasdaq gained 0.1% each on Friday.

Indices had rebounded slightly from sharp losses on Thursday after Trump said the ongoing trade war could be over quickly.

U.S. durable goods orders dropped 2.1% last month amid a slowdown in exports and a buildup in inventories. IHS Markit said Thursday that U.S. manufacturing activity fell to a nine-year low.

US oil rose 1.2% to $58.63 a barrel while Brent rose 93 cents, or 1.4% to $67.69.

European markets gained 0.5%-1.2%. UK Prime Minister Theresa May announced that she would resign as party leader on June 7, making way for a new PM to continue Brexit negotiations with the EU

For the week, Dow fell 0.7%, extending the losing streak to fifth consecutive week. S & P 500 and Nasdaq fell 1.2% and 2.3% respectively, marking third consecutive negative week. European markets fell 1%-2.2%. Asian markets were off 0.6%-2.1%. WTI plunged more than 6%, its biggest of 2019 and Brent fell more than 4.5%.

U.S. President Trump is on a state visit to Japan, where he said Tokyo and Washington were “getting close” to a deal that would address the U.S. trade deficit.

AT HOME

After Thursday's healthy profit booking, benchmark indices resumed their upward journey on Friday by surging 1.6% and hitting a record closing high. Sensex soared 623 points to settle at 39434 while Nifty finished at 11844, up 187 points. BSE mid-cap and small-cap indices climbed 2% and 2.4% respectively. All the BSE sectoral indices ended in green with Realty and Capital Goods indices leading the tally, up 4.2% and 4% respectively.

FIIs net bought stocks worth Rs 2026 cr but net sold index futures and stock futures worth Rs 9 cr and 365 cr respectively. DIIs were net sellers to the tune of Rs 195 cr.

Rupee appreciated 48 paise to end at 69.52/$.

OUTLOOK

Today morning, Nikkei is up 0.3% while Hang Seng and Shanghai are down 0.6% and 0.4% respectively. SGX Nifty is suggesting about 20 points lower start for our market.

In Friday's report we had mentioned that "Usually, the top/bottoms made on the big event day are crucial levels to eye. Hence, 12041, the top made yesterday, would be the important resistance going forward, a crossover of which would be required for a fresh upmove".

Nifty, on Friday, rose to touch a high of 11859 before closing at 11844 and is set to open a tad lower today.

12041, the top made on Thursday, continues to be important immediate hurdle, a crossover of which is required for a fresh upmove. On the way down, 10614, the bottom made on Thursday, is the immediate support to eye, with the stop-loss of which, trading longs can be held on to.

ZEE Entertainment, Adani Ports and GAIL will report their quarterly earnings today.

PROFIT BOOKING AS EXPECTED; OUTLOOK POSITIVE THOUGH

PROFIT BOOKING AS EXPECTED; OUTLOOK POSITIVE THOUGH

WORLD MARKETS

Equities, bond yields and crude tumbled yesterday on worries that the US-China trade war is slowing the economy. US indices nosedived 1.1%-1.6%.

IHS Markit said on Thursday that U.S. manufacturing activity grew at its slowest pace since September 2009 this month. Panasonic, Vodafone, BT Group and chip designer Arm Holding announced discontinuation of business relation with Huawei to comply with the US blacklisting of the company.

US oil plunged $3.51 or 5.7% to $57.91 a barrel while Brent tumbled $3.35 or 4.7% to $67.64 on the back of prolonged U.S.-China trade war and disappointing US manufacturing data.

The US 10-year yield fell to its lowest since October 2017.

European markets tumbled 1.4%-2.1%.

AT HOME

After climbing nearly 2.5% on the back evident NDA victory in the general election, benchmark indices saw a dramatic reversal to end lower by seven tenth of a percent. Sensex settled at 38811, down 299 points while Nifty lost 80 points to finish at 11657. BSE mid-cap and small-cap indices fell 0.2% and 0.1% respectively. BSE FMCG and Metal indices fell 1.8% and 1.6% respectively, becoming top losers among the sectoral indices while Telecom and Industrials indices were the top gainers, up 1% and 0.7% respectively.

FIIs net bought stocks worth Rs 1352 cr but net sold index futures and stock futures worth Rs 1414 cr and 372 cr respectively. DIIs were net sellers to the tune of Rs 594 cr.

Rupee depreciated 35 paise to end at 70.01/$.

It was a resounding victory for the BJP led NDA, which won 353 seats in 542 seats Lok Sabha, UPA won 92 seats and Others won 97 seats. BJP, on its own, crossed 300 mark to win 303 seats.

OUTLOOK

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

In yesterday's report we had clearly mentioned that market has already factored in a clean NDA victory and 300 to 330-340 seats would be a "Neutral" scenario in terms of market reaction. We had also said that above 11883, 12000-12080 would be the next resistance zone. As expected, after touching a high of 12041, profit booking set in and Nifty plunged all the way to 11614 before closing at 11657.

The benchmark is set to open above 11700 today.

Usually, the top/bottoms made on the big event day are crucial levels to eye. Hence, 12041, the top made yesterday, would be the important resistance going forward, a crossover of which would be required for a fresh upmove. If that happen, 12500 would be the next major target.

34-DMA, placed around 11575, would be the important immediate support to watch below which 11426, the lower end of the gap created by Monday's gap up opening, would be the next support to eye.

In our study of past three elections, markets have always given positive return in a one-year period post election result. Hence, now that the big event is out of the way, and that too with a positive outcome, we think this time as well, Nifty should follow the precedent, barring any unforeseen developments.

In the immediate future, markets would watch out for the portfolio allocation in the new government and vision/agenda of the new ministers.

HERE COME THE BIG DAY

HERE COME THE BIG DAY

WORLD MARKETS

US indices fell 0.3%-0.4% on persisting trade worries and declines in Qualcomm and retailer shares.

Treasury Secretary Steven Mnuchin said that a trip to Beijing to resume trade negotiations has not been scheduled yet, reducing hopes of a speedy resolution to the U.S.-China trade war.

Also, media reports from China suggested that restrictions on Chinese telecom giant Huawei have led China to rethink its entire economic relationship with the U.S and that China is considering dropping purchases of natural gas from the U.S.

Minutes from the U.S. Federal Reserve’s May meeting indicated the central bank will not make any moves regarding interest rates “for some time” even if the economy improves.

Qualcomm plunged 11% — it's biggest one-day drop since Jan. 23, 2017 — after a U.S. judge ruled the chipmaker violated antitrust law by unlawfully suppressing competition in the cellphone chip space. Lowe’s fell 11.9% on weaker-than-expected earnings. Nordstrom dropped 9.3% as its quarterly earnings and revenue missed expectations. Target on the other hand rose more than 9% as its earnings and revenue topped analyst expectations.

US crude plunged $1.71 or 2.7% to $61.39 and Brent fell $1.19 or 1.7% to $70.99 a barrel after data from EIA showed U.S. crude inventories swelled by 4.7 million barrels in the latest week to their highest since July 2017.

European markets ended mixed with modest changes.

AT HOME

It was a day of consolidation as benchmark indices ended modestly higher after trading in a narrow range through the session. Sensex added 140 points to settle at 39110 while Nifty finished at 11737, up 28 points. BSE small-cap index gained 0.5% but mid-cap index fell 0.2%. BSE Bankex and Capital Goods indices gained 0.9% each, becoming top gainers among the sectoral indices while FMCG index fell 0.8%, becoming top loser, followed by 0.6% lower Consumer Durable, IT and Teck indices.

FIIs net sold stocks and stock futures worth Rs 965 cr and 480 cr respectively but net bought index futures worth Rs 136 cr. DIIs were net sellers to the tune of Rs 158 cr.

Rupee appreciated 5 paise to end at 69.66/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-0.7% and SGX Nifty is suggesting about 30 points lower start for our market.

The big event to watch out today would be the counting of votes and actual result of the Parliament election.

We have already seen Nifty rising nearly 400 points reacting to exit polls and hence in our opinion, market has already factored in clear majority for NDA. Now further reaction will depend the exact number. In our opinion, 300 to 330-340 would be neutral, 350+ would be quite positive, below 300 to 270-260 would be slightly negative and below 250 would be very negative. 

In terms of levels, 11883, the top made on Tuesday, is the immediate hurdle, upon crossover of which 12000-12080 would be the next target zone. If this zone is also surpassed, the big target/resistance to watch out would be 12500, where the upward sloping trendline adjoining tops made in February 2018 and September 2018, is placed.

On the way down 11591-11426, the gap created by Monday's gap up opening, is the first support zone to eye, below which 11108, the low made last week, would be the next major support. In case of this level also giving way, 10585, the bottom made in February, would be the next support to eye.

Banking/Financial services, Capital Goods/Infra are the sectoral which react most on the either side and that is likely to be case even this time.

Counting days have usually been very volatile and today is unlikely to be any exception. Hence, traders are advised to exercise caution.

11591 CONTINUES TO BE IMMEDIATE SUPPORT; 11883 IMMEDIATE HURDLE

11591 CONTINUES TO BE IMMEDIATE SUPPORT; 11883 IMMEDIATE HURDLE

WORLD MARKETS

US indices gained 0.8%-1.1% following news that the U.S. temporarily eased restrictions on Chinese telecom giant Huawei.

The Commerce Department said it would allow Huawei to purchase American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets until Aug. 19. 

OECD released its growth outlook, projecting global economic growth of 3.2% in 2019, down 0.1% from its March forecast, and an unchanged 3.4% in 2020.

WTI crude fell 11 cents to $62.99 a barrel while Brent rose 6 cents to $72.03.

European markets gained 0.2%-0.8%. Streling surged after British Prime Minister offered lawmakers a vote on whether to have a second Brexit referendum if they approved her withdrawal deal.

AT HOME

Benchmark indices slipped a percent, giving back about a fourth of yesterday's mammoth upmove. Sensex settled at 38969, down 382 points while Nifty lost 119 points to finish at 11709. BSE mid-cap and small-cap indices fell 0.8% and 0.6% respectively. Except 0.6% and 0.2% higher Consumer Durable and Energy indices respectively, all the BSE sectoral indices ended in red, with Auto index leading the losses, down 2.6%, followed by 1.6% lower Telecom and Metal indices.

FIIs net bought stocks worth Rs 1185 cr but net sold index futures and stock futures worth Rs 86 cr and 884 cr respectively. DIIs were net sellers to the tune of Rs 1090 cr.

Rupee appreciated 3 paise to end at 69.71/$.

Tech Mahindra's numbers missed estimates. Dollar revenue grew just 0.5% q-o-q and EBIT margin fell to 15.4% from 16.1%.

OUTLOOK

Today morning, Shanghai is flat while Hang Seng and Nikkei are up 0.4% and 0.2% respectively. SGX Nifty is suggesting about 20 points higher start for our market.

In yesterday's report we had said that "11856 continues to be immediate hurdle to eye, upon crossover of which 11920 and 12010 would be next upside targets".

Nifty, after touching a high of 11883 in the initial trade, slipped to end at 11709, and is set to open higher today.

11883, the top made yesterday, is the immediate hurdle to eye, upon crossover of which, 11960 and 12035 would be next upside targets.

11591, the low made on Monday, continues to be immediate support, below which, 11426, the lower end of the gap created by Monday's gap up opening, would be the next support to eye.

Indusind Bank will report its quarterly earnings today.

NIFTY NEARLY ACHIEVES 11856 TARGET; TRAIL STOP-LOSS TO 11591

NIFTY NEARLY ACHIEVES 11856 TARGET; TRAIL STOP-LOSS TO 11591

WORLD MARKETS

US indices fell 0.3%-1.5% as the intensifying fallout from a U.S. crackdown on Chinese telecom giant Huawei pressured the technology sector.

Alphabet’s Google has suspended business with Huawei that involves transferring hardware, software and other technical services. Also, media reports suggested that companies like Intel, Qualcomm and Broadcom will not supply Huawei until further notice.

US crude rose 34 cents to $63.10 a barrel while Brent fell 24 cents to $71.97.

European markets fell 0.5%-2.7%.

AT HOME

Benchmark indices soared 3.7% each to hit a record closing high and registering the biggest single day gain since 10th September 2013, responding to the exit polls showing comfortable majority for the BJP led NDA. Sensex added 1421 points to settle at 39352 while Nifty finished at 11828, up 421 points. BSE mid-cap and small-cap indices climbed 3.6% each. All the BSE sectoral indices ended in green with Industrials and Realty indices leading the tally, up 5.6% and 5.5% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1734 cr, 1071 cr and 793 cr respectively. DIIs were net sellers to the tune of Rs 543 cr.

Rupee appreciated 48 paise to end at 69.73/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.1%-0.5% and SGX Nifty is suggesting a modestly higher start for our market.

Readers would recall that we had advised going long on Nifty after 11320-11350 resistance zone was taken out. In yesterday's report we had said that 11650, where a trendline adjoining recent tops on the daily chart is placed, was the immediate target, upon crossover of which 11856, the top made last month, would be the next major target.

Nifty soared to touch a high of 11845, coming very close to 11856 target before closing at 11828, vindicating our view.

11856 continues to be immediate hurdle to eye, upon crossover of which 11920 and 12010 would be next upside targets.

11591, the low made yesterday, also coincides with 34-DMA, and hence is the immediate support, with the stop-loss of which, existing longs can be held on to.