NIFTY ACHIEVES 10807 TARGET; TRAIL STOP-LOSS TO 10510

NIFTY ACHIEVES 10807 TARGET; TRAIL STOP-LOSS TO 10510

WORLD MARKETS

US indices soared 1.6%-2.2%, with the S & P 500 rising for the fifth consecutive day and Nasdaq hitting an all-time high, on the back of strong economic data and surge in technology stocks.

Institute for Supply Management's nonmanufacturing index rose to 57.1 in June, topping estimate of 50.1.

Amazon surged 5.7% to trade above $3,000 for the first time ever. Netflix jumped 3.5% to hit a record high, while Apple, Microsoft, Google-parent Alphabet and Facebook all gained at least 2% each.

Meanwhile, the number of people hospitalized with Covid-19 grew by 5% or more Sunday in 23 states of US, including Texas, which reported a record of more than 8,000 hospitalizations on Sunday. California Gov. Gavin Newsom on Monday asked six additional counties to close their indoor businesses

European markets gained 1.5%-2.1%.

Brent crude rose 73 cents, or 1.7%, to $43.53 per barrel while WTI rose 28 cents, or 0.7%, to $40.93.

AT HOME

New week began on a buoyant note as benchmark indices climbed nearly a percent and half, extending the winning streak to fourth straight day and closing at fresh four-month high. Sensex settled at 36487, up 465 points while Nifty finished at 10763, up 156 points. BSE mid-cap and small-cap indices gained 1.3% each. BSE Energy and Realty indices soared 3% each, becoming top gainers among the sectoral indices, followed by 2.9% higher Auto index. FMCG and Telecom indices were the top losers, down 0.8% and 0.6% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 348 cr, 704 cr and 408 cr respectively. DIIs were net buyers to the tune of Rs 263 cr.

Rupee depreciated 4 paise to end at 74.67/$.

OUTLOOK

Today morning, Shanghai and Hang Seng are up 0.8% and 0.2% respectively while Nikkei is off 0.6%. SGX Nifty is suggesting around 30 points lower start for our market.

In yesterday's report we had said that 34-week moving average, placed around 10725, continued to be next upside target, upon crossover of which, 10807, the 67% retracement level of the 12430-7511 fall, would be the next major target/resistance to eye.

Nifty achieved 10725 target at the open itself and surged all the way to 10811 before closing at 10763, achieving 10807 target and vindicating our view.

10890, where 200 Day Simple Moving Average is placed, is the next upside target/resistance to eye.

Immediate support on the hourly chart has moved up to 10510, with the stop-loss of which, trading longs should be held on to.