TRAIL STOP-LOSS TO 10930

TRAIL STOP-LOSS TO 10930

WORLD MARKETS

US indices gained 0.2%-0.3% after digesting a slew of U.S.-China trade news along with a large bond buying program from Europe’s central bank.

President Trump agreed on Wednesday to delay an additional increase in tariffs on Chinese goods by two weeks “as a gesture of good will.

Yesterday, indices touched session highs after Bloomberg News reported that Trump’s advisors were considering an interim deal with China but came off the day high after a senior White House official denied such a deal.

European Central Bank cut its deposit rate to a record low -0.5% from -0.4% and said it will restart bond purchases of 20 billion euros a month from November to prop up euro zone growth.

Brent crude futures fell 74 cents, or 1.2%, to $60.07 a barrel while WTI futures fell 92 cents, or 1.7%, to $54.83 after a media report cast doubt on the possibility of an interim U.S.-China trade deal and as a meeting of the OPEC+ alliance yielded no decision on deepening crude supply cuts.

European markets rose 0.1%-0.9%.

AT HOME

After gaining nearly half a percent in the initial trade, benchmark indices reversed these gains through the sessions to end lower by about half a percent, with Nifty breaking 5-day winning streak. Sensex settled at 37104, down 166 points while Nifty lost 53 points to finish at 10982. BSE mid-cap index fell 0.2% while small-cap index rose 0.1%. BSE Auto and Telecom indices tumbled 1.9% and 1.7% respectively, becoming top losers among the sectoral indices while Finance index rose 0.4%, becoming top gainer, followed by 0.2% higher Bankex and Capital Goods indices.

FIIs net bought stocks worth Rs 784 cr but net sold index futures and stock futures worth Rs 1006 cr and 200 cr respectively. DIIs were net sellers to the tune of Rs 127 cr.

Rupee appreciated 52 paise to end at 71.13/$.

July IIP growth came in at 4.3%, up from 2% growth registered in June. August CPI rose marginally to 3.21% from 3.15% in July.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.9% and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had reiterated the view that 11140-11220 continues to be next target zone and had advised holding on to long positions with the stop-loss of 10900.

Nifty, after touching a high of 11081, slipped to end at 10982 and is set to open little changed today.

11140-11220 continues to be upside target/resistance zone to eye.

Immediate support on the hourly chart has moved up to 10930, with the stop-loss of which, existing longs can be held on to.