TRAIL STOP-LOSS TO 11500

 

TRAIL STOP-LOSS TO 11500

 

WORLD MARKETS

 

US indices rose 0.6%-0.7% on Friday with the Dow Jones Industrial Average erasing its losses of 2020.

 

U.S. consumer spending rose 1.9% in July, topping forecast of a 1.5% gain. Personal income rose 0.4%, beating the expectation of a drop of 0.2%.

 

Brent crude futures fell 5 cents to $45.04 a barrel while WTI crude settled 7 cents, or 0.2%, lower at $42.97 per barrel.

 

Main European markets fell 0.3%-0.6%.  France’s second-quarter GDP was confirmed at -13.8% and household consumption rose 0.5% in July from the previous month. In Spain, retail sales dropped 3.9% year-on-year in the month of July, a slight improvement from the previous reading.

 

For the week, US indices climbed 2.6%-3.3% with the S & P 500 and Nasdaq notching five-week winning streak.

 

AT HOME

 

Sensex and Nifty climbed 0.9% and 0.8% respectively, extending the winning streak to sixth straight day and closing at fresh six-month high. Sensex settled at 39467, up 353 points while Nifty added 96 points to finish at 11655. BSE mid-cap index rose 0.6% but small-cap index fell 0.2%. BSE Bankex surged 4%, becoming top gainer among the sectoral indices, followed by 2.4% higher Telecom index. Auto and Utilities indices were the top losers, down 0.9% each.

 

FIIs net bought stocks and index futures worth Rs 1004 cr and 351 cr respectively but net sold stock futures worth Rs 807 cr. DIIs were net sellers to the tune of Rs 511 cr.

 

Rupee appreciated 42 paise to end at 73.38/$.

 

For the week, Sensex and Nifty gained 2.7% and 2.5% respectively.

 

Government unveiled unlock 4.0 guideline according to which states cannot impose lockdown outside Containment Zones. Also, metro rail will be allowed to operate with effect from 7th Septemebr in a graded manner.

 

Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd, announced that it is acquiring the entire retail, wholesale, logistics and warehousing businesses from the Future Group on a slump sale basis for a total consideration of Rs 24,713 crore .

 

OUTLOOK

 

China's official manufacturing PMI for the month of August came in at 51 v/s 51.1 in July.

 

Today morning, Asian markets are trading with gains of 0.6%-1.8% and SGX Nifty is suggesting around 70 points higher start for our market.

 

Readers would recall that we had turned our view on Nifty bullish after 11373 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

 

On Friday, we had said that above 11630, 11700 would be the next target. Nifty, after touching a high of 11686, closed at 11647 and is set to open above 11700 today.

 

12012-12071, the gap created by gap-down opening on 24th February, is now the next major target/resistance to eye.

 

Immediate support on the hourly chart has moved up to 11500, with the stop-loss of which, trading longs should be held on to.

 

India's Q1 GDP data will be released today and is expected to show a contraction of 19.6%.

11700 ABOVE 11630; TRAIL STOP-LOSS TO 11440

 

11700 ABOVE 11630; TRAIL STOP-LOSS TO 11440

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.6% and 0.2% respectively, with the S & P 500 reaching a new all-time high for a fifth day in a row, while Nasdaq eased 0.3% as Apple and Amazon fell.

 

Fed Chair Powell announced a major policy shift by the U.S. central bank to “average inflation targeting.” That means the Fed will allow inflation to run “moderately” above the central bank’s 2% goal “for some time” after periods when it has run below that objective. The Fed also adjusted its view of full employment to allow gains in the labor market to run more broadly. That means the central bank will be less inclined to raise interest rates when the unemployment rate falls, as long as inflation does not creep up as well.

 

Brent crude futures fell 57 cents, or 1.3%, to $45.10 a barrel while WTI crude futures settled 35 cents, or 0.8%, lower at $43.04 per barrel.

 

Main European markets fell 0.6%-0.8%.

 

AT HOME

 

After rising more than half a percent in the morning, benchmark indices gave away most of the gains in noon trade to end just marginally higher. Sensex settled at 39113, up 39 points while Nifty added 9 points to finish at 11559. BSE mid-cap index ended flat while small-cap index rose 0.4%. BSE Realty index soared 6.6%, becoming top gainer among the sectoral indices, followed by 1% higher Auto index. Energy and Oil & Gas indices were the top losers, down 1% and 0.8% respectively.

 

FIIs net bought stocks and index futures worth Rs 1164 cr and 600 cr respectively but net sold stock futures worth Rs 72 cr. DIIs were net sellers to the tune of Rs 809 cr.

 

Rupee appreciated 48 paise to end at 73.81/$.

 

Realty stock surged after Maharashtra government slashed stamp duty to 2% from 5% for the September-December period in a bid to revive the industry.

 

For the August derivative series, Nifty gained 4.1%.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-0.4%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 11630 continued to be next upside target and had advised trailing the stop-loss in long positions to 11423.

 

Nifty, after touching a high of 11617, slipped to end at 11559 but is set to open near 11600 today.

 

11630 continues to be upside target/resistance to eye, upon crossover of which, 11700 would be next target.

 

Immediate support on the hourly chart has moved up to 11440, with the stop-loss of which, trading longs should be held on to.

TRAIL STOP-LOSS TO 11423

TRAIL STOP-LOSS TO 11423

 

WORLD MARKETS

 

US indices gained 0.3%-1.7% with Nasdaq leading the tally after some of the nation’s largest technology and consumer communications companies rallied.

 

Salesforce soared 26% after reporting blowout earnings. Netflix and Facebook climbed 11.6% and 8.2% respectively, while Apple added 1.4%, Amazon advanced 2.8% and Microsoft climbed 2.1%.

 

Biotech firm Moderna announced that its potential coronavirus vaccine generated a promising immune response in elderly patients during an early stage clinical trial.

 

Brent crude fell 22 cents to $45.64 a barrel, while WTI settled 4 cents higher at $43.39 per barrel.

 

European markets gained 0.1%-1%.

 

AT HOME

 

Benchmark indices gained six tenth of a percent, extending the winning streak to fourth straight day and closing at six-month high. Sensex added 230 points to settle at 39073 while Nifty finished at 11549, up 77 points. BSE mid-cap and small-cap indices rose 0.4% and 0.7% respectively. BSE Energy index climbed 2.1%, becoming top gainer among the sectoral indices, followed by 1.5% higher Auto index and Bankex. Telecom index tumbled 2%, becoming top loser, followed by 0.2% lower Basic Material index.

 

FIIs net bought stocks and index futures worth Rs 1581 cr and 360 cr respectively but net sold stock futures worth Rs 778 cr. DIIs were net sellers to the tune of Rs 1195 cr.

 

Rupee appreciated 3 paise to end at 74.29/$.

 

Tata Motors surged, extending the rising streak to second straight day, after the company said it proposed to reduce its debt to near-zero levels.

 

Hero Motocorp climbed after finance minister Nirmala Sitharaman endorsed the need for a cut in goods and services (GST) tax on two-wheelers.

 

OUTLOOK

 

Today morning, Shaghai is little changed while Nikkei and Hang Seng are down 0.4% and 0.8% respectively. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 11536, the upper end of the gap created by gap-down opening on 28th February, continued to be immediate resistance, above which, 11630 would be the next target. We had also said that 11362, the low made Friday, continued to be immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty rose to cross the 11536 and touched a high of 11561 before closing at 11549.

 

11630 continues to be next upside target.

 

11423, the low made Wednesday, would now act as immediate support, with the stop-loss of which, trading longs should be held on to.

 

Century Textiles, Equitas and Ujjivan will be excluded from F & O segment after August derivative expiry.

 

41st GST Council meeting will be held today. Key agenda is to make up for shortall in states' revenue.  

 

Markets will watch out for Fed Chair Powell's speech at the Federal Reserve’s annual virtual symposium on monetary policy today, for clues on further stimulus, inflation and its impact on the dollar.

  

NIFTY RETREATS FROM 11536 HURDLE; 11362 CONTINUES TO BE IMMEDIATE SUPPORT

 

NIFTY RETREATS FROM 11536 HURDLE; 11362 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow fell 0.2% while S & P 500 and Nasdaq rose 0.4% and 0.8% respectively to hit fresh record highs.

 

U.S. Census reported a 36% surge in sales of newly built homes in July. The Conference Board Consumer Confidence Index, however, fell for a second straight month to 84.8 in August from July’s 91.7.

 

China and the U.S. resumed trade talks. In a statement, the Office of the U.S. Trade Representative said that both sides made “progress and are committed to taking the steps necessary to ensure the success of the” phase one trade deal.

 

Brent crude futures rose 83 cents, or 1.8%, to $45.96 a barrel, while WTI crude rose 73 cents, or 1.7%, to settle at $43.35 per barrel.

 

In Europe, FTSE slipped 1.1% while DAX and CAC were flat. Data showed Germany's second quarter GDP shrank by 9.7% from the previous three month period.

 

AT HOME

 

After rising half a percent in the initial trade, benchmark indices gave away most of the gains through the session to end just marginally higher. Sensex settled at 38843, up 44 points while Nifty added 6 points to finish at 11472. Nifty mid-cap and small-cap indices gained 0.3% and 0.5% respectively. BSE Bankex and Finance indices climbed 1.2% and 1% respectively, becoming top gainers among the sectoral indices while Realty index tumbled 2.1%, becoming top loser, followed by 0.6% lower Utilities and FMCG indices.

 

FIIs net bought stocks worth Rs 1481 cr but net sold index futures and stock futures worth Rs 144 cr and 328 cr respectively. DIIs were net buyers to the tune of Rs 173 cr.

 

Rupee depreciated 1 paise to end at 74.32/$.

 

Finance Minister Nirmala Sitharaman said the GST Council would look into the auto industry’s demand for lowering the tax rate on two-wheelers

 

OUTLOOK

 

Today morning, Nikkei is little chagegd while Hang Seng and Shanghai are up around three tenth of a percent. SGX Nifty is suggesting around 20 points higher start for our market.

 

In yesterday's report we had said that 11536, the upper end of the gap created by gap-down opening on 28th February, continued to be the next target/resistance and had advised trailing stop-loss in long positions to 11362.

 

Nifty, after touching a high of 11526, retreated to end at 11472 and is set to open near 11500 today.

 

11536, the upper end of the gap created by gap-down opening on 28th February, continues to be immediate resistance, above which, 11630 would be the next target.

 

11362, the low made Friday, continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

TRAIL STOP-LOSS TO 11362

 

TRAIL STOP-LOSS TO 11362

 

WORLD MARKETS

 

US indices climbed 0.6%-1.4%, with the S & P 500 and Nasdaq hitting fresh record highs, on the back of positive sentiment surrounding the coronavirus pandemic situation in the U.S.

 

Data compiled by Johns Hopkins University showed newly confirmed virus infections falling under 37,000 and have been below 50,000 since mid-August. The Food and Drug Administration also approved the use of convalescent plasma as a treatment for coronavirus patients. News reports also suggested that Trump administration is also considering fast-tracking an experimental vaccine from the U.K.

 

WTI crude gained 28 cents, or 0.7%, to settle at $42.62 per barrel while Brent crude advanced 78 cents, or 1.8%, to $45.13.

 

European markets surged 1.7%-2.4%.

 

AT HOME

 

Sesnex and Nifty climbed 1% and 0.8% respectively, extending the winning streak to second straight day and closing at the highest level since 27th February, marking a near 6-month high. Sensex added 364 points to settle at 38799 while Nifty finished at 11466, up 94 points. BSE mid-cap and small-cap indices gained 0.4% and 1.6% respectively. BSE Bankex and Finance indices soared 2.4% and 2% respectively, becoming top gainers among the sectoral indices while Realty and Utilities indices were the top losers, down 1.2% and 0.5% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 219 cr, 786 cr and 428 cr respectively. DIIs were net sellers to the tune of Rs 336 cr.

 

Rupee appreciated 53 paise to end at 74.31/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-1.4% and SGX Nifty is suggesting around 25 points higher start for our market.

 

In yesterday's report we had said that 11460, the top made last week, continued to be immediate hurdle, upon crossover of which, 11536, the upper end of the gap created by gap-down opening on 28th February would be the next target/resistance. We had also said that 11285 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

Nifty touched a high of 11497 before closing at 11466 and is set to open near 11500 today.

 

11536, the upper end of the gap created by gap-down opening on 28th February, continues to be the next target/resistance. Above 11530, 11630 would be the next target.

 

11362, the low made Friday, would now act as the immediate support, with the stop-loss of which, trading longs should be held on to.

 

11285-11460 CONTINUES TO BE IMMEDIATE RANGE

 

11285-11460 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

US indices gained 0.3%-0.7% on Friday on the back of strong economic data. Both S & P 500 and Nasdaq made new record closing highs.

 

Data from IHS Markit showed U.S. manufacturing activity hit its highest level in 19 months in August, while services were at their highest level in 17 months. Existing-home sales for July saw a record month-over-month spike of 24.7%.

 

Brent crude futures fell 84 cents, or 1.9%, to $44.06 a barrel while WTI futures settled 48 cents, or 1.12%, lower at $42.34 per barrel.

 

European markets fell 0.2%-0.5% as economic data disappointed. Eurozone composite PMI fell to 51.6 from July’s 54.9, considerably below market expectations. U.K. August composite PMI came in at 60.3, outstripping expectations of 57.1 and a marked improvement from July’s 57.0.

 

For the week, Nasdaq climbed 2.5%, S & P 500 rose 0.7% while Dow ended flat.

 

AT HOME

 

After opening with a gap of nearly a percent, benchmark indices gave away nearly half of the gains through the session to end higher by nearly half a percent. Sensex settled at 38434, up 214 points while Nifty added 59 points to finish at 11371. BSE mid-cap and small-cap indices gained 0.6% and 1.4% respectively. BSE Power and Utilities indices climbed 2.8% and 2.6% respectively, becoming top gainers among the sectoral indices while Telecom and Energy indices were the top losers, down 0.8% and 0.6% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 410 cr, 1236 cr and 315 cr respectively. DIIs were net sellers to the tune of Rs 251 cr.

 

Rupee appreciated 18 paise to close at 74.84/$.

 

For the week, Sensex and Nifty gained 1.5% and 1.7%.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 1.4% and 0.4% respectively while Shanghai is off 0.3%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In Friday's report we had said that 11285 continued to be immediate support, while 11460, the top made on Wednesday, continued to be immediate hurdle.

 

Nifty, after touching a high of 11418 in the initial trade, slipped to end at 11371 and is set to open near 11400 today.

 

11460, the top made last week, continues to be immediate hurdle, upon crossover of which, 11536, the upper end of the gap created by gap-down opening on 28th February would be the next target/resistance.

 

11285 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

NIFTY REBOUNDS FROM 11285 SUPPORT; 11460 CONTINUES TO BE IMMEDIATE HURDLE

 

NIFTY REBOUNDS FROM 11285 SUPPORT; 11460 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

After opening in red, US indices saw a sustained northward move through the session to end with gains of 0.2%-1.1% as gains in heavyweight tech stocks outweighed weaker-than-expected jobs data.

 

Initial weekly jobless claims came in above 1 million, surpassing estimate of 923,000. Continuing claims— those receiving unemployment benefits for at least two straight weeks — decreased by more than 600,000.

 

Meanwhile,  Chinese commerce ministry announced that Washington and Beijing will be back around the negotiating table in the coming days.

 

Brent crude fell $1.24, or 2.7%, to $44.13 a barrel, while WTI settled 35 cents, or 0.8%, lower at $42.58 per barrel.

 

European markets fell 1.1%-1.6%

 

AT HOME

 

Sensex and Nifty slipped 1% and 0.8% respectively, snapping 3-day rising streak. Sensex lost 394 points to settle at 38220 while Nifty finished at 11312, down 96 points. Nifty mid-cap and small-cap indices however climbed 0.8% and 0.7% respectively to extend their winning streak to fourth straight day and closing at the highest level since 3rd March. BSE Utilities and Power indices surged 4.2% and 4.1% respectively, becoming top gainers among the sectoral indices while Telecom index and Bankex were the top losers, down 1.8% and 1.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 268 cr, 1697 cr and 965 cr respectively. DIIs were net sellers to the tune of Rs 672 cr.

 

Rupee depreciated 20 paise to end at 75.02/$.

 

Divi's Lab and SBI Lfe will replace Bharti Infratel and Zee Entertainment in Nifty effective September 25.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.3%-0.8%. SGX Nifty is suggesting around 75 points higher start for our market.

 

In yesterday's report we had said that 11285 continued to be immediate support on the hourly chart.

 

Nifty, after touching  a low of 11289, closed at 11312 and is set to open near 11400 today.

 

11285 continues to be immediate support, upon breach of which, an upward sloping trendline adjoining recent bottoms on the daily chart, would land the support around 11225.

 

11460, the top made on Wednesday, continues to be immediate hurdle.

 

Meanwhile, continue to hold trading longs with the stop-loss of 11285.

11200 BELOW 11285; 11460 IS THE IMMEDIATE HURDLE

 

11200 BELOW 11285; 11460 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.3%-0.6%, reacting to the cautious outlook from the minutes of the latest Fed meeting.

 

In the minutes from its July meeting, the Fed said “the ongoing public health crisis would weigh heavily on economic activity, employment, and inflation in the near term and was posing considerable risks to the economic outlook over the medium term.”

 

Apple, however, made history by becoming the first U.S. company to reach a market cap of $2 trillion.

 

Meanwhile, President Trump on Tuesday said he has postponed trade talks with China and does not want to speak with China right now. White House Chief of Staff Mark Meadows later told reporters that there were no new high-level talks scheduled between Washington and Beijing.

 

Brent crude futures fell 13 cents to $45.33 a barrel, while WTI crude settled 4 cents higher at $42.93 per barrel.

 

European markets gained 0.6%-1.1%. U.K. inflation unexpectedly jumped to a four-month high in July at 1.0%, surpassing expectations of 0.6%.

 

AT HOME

 

After opening higher by nearly two third of a percent, benchmark indices gave away most of the gains through the session to end just modestly higher. However, this was the third straight day of gains and fresh highest close in more than five and a half months for both Sensex and Nifty. Sensex settled at 38614, up 86 points while Nifty added 23 points to finish at 11408. BSE mid-cap and small-cap indices rose 0.6% and 1.2% respectively. BSE Telecom and Realty indices gained 1.5% and 1.4% respectively, becoming top gainers among the sectoral indices while IT and FMCG indices were the top losers, down 0.5% and 0.4% respectively.

 

FIIs net bought stocks worth Rs 459 cr but net sold index futures and stock futures worth Rs 250 cr and 669 cr respectively. DIIs were net sellers to the tune of Rs 97 cr.

 

Rupee depreciated 6 paise to end at 74.82/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-1.5% and SGX Nifty is suggesting around 130 points lower start for our market.

 

In yesterday's report we had said that 11536, the upper end of the gap created by gap-down opening on 28th February, was the next upside target while 11285 was the immediate support on the hourly chart with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 11460, slipped to end at 11408 and is set to open near 11300 today.

 

11285 continues to be immediate support on the hourly chart, upon breach of which 11200, where a trendline adjoining recent bottoms on the daily chart is placed, would be the important support.

 

11460, the top made yesterday, would now act as immediate hurdle, upon crossover of which, 11536, the upper end of the gap created by gap-down opening on 28th February, would be the next target.

 

Meanwhile, trading longs should be cut if Nifty sustains below 11285.

11536 IS THE NEXT UPSIDE LEVEL TO EYE; STAY LONG WITH THE STOP-LOSS OF 11285

 

11536 IS THE NEXT UPSIDE LEVEL TO EYE; STAY LONG WITH THE STOP-LOSS OF 11285

 

WORLD MARKETS

 

Dow fell 0.2% while S & P 500 and Nasdaq rose 0.2% and 0.7% respectively, with the S & P 500 hitting a record high.

 

Technology stocks once again led from the front while shares of retailers fell despite Walmart and Home Depot’s better-than-expected quarterly results. Kohl’s plunged more than 14% after the company offered a grim outlook ahead of the all-important holiday season.

 

Developments over fresh coronavirus stimulus continued to be in focus. Treasury Secretary Steven Mnuchin criticized Democratic leaders as obstinate and unwilling to discuss a smaller relief package; however, House Speaker Nancy Pelosi said she is was willing to cut some demands to get an agreement on the bill.

 

Brent crude futures rose 4 cents to $45.41 a barrel while WTI futures were unchanged at $42.89 per barrel.

 

European markets fell 0.3%-0.8%.

 

AT HOME

 

Sensex and Nifty soared a percent and quarter each to close at the highest level since 3rd March and 27th February respectively. Sensex settled at 38528, up 477 points while Nifty added 138 points to finish at 11385. BSE mid-cap and small-cap indices gained 1.1% and 1.3% respectively. Except 0.2% and 0.1% lower Utilities and Healthcare indices respectively, all the BSE sectoral indices ended in green with Realty index climbing 4.2% to become top gainer, followed by 2.2% higher Bankex.

 

FIIs net bought stocks and stock futures worth Rs 1135 cr and 39 cr respectively but net sold index futures worth Rs 161 cr. DIIs were net sellers to the tune of Rs 379 cr.

 

Rupee appreciated 13 paise to end at 74.75/$.

 

OUTLOOK

 

Today morning, Shanghai is off 0.6% while Nikkei and Hang Seng are modestly higher. SGX Nifty is suggesting around 25 points higher start for our market.

 

In yesterday's report we had reiterated the view that 11111, the low made on Friday, continued to be immediate support while 11373, the top made last week, continued to be important resistance.

 

Nifty soared to cross 11373 hurdle and touched a high of 11402 before closing at 11385.

 

11536, the upper end of the gap created by gap-down opening on 28th February, is the next upside target to eye.

 

11285 is the immediate support on the hourly chart with the stop-loss of which, trading longs can be held on to.