11390 CONTINUES TO BE IMMEDIATE HURDLE; TRAIL STOP-LOSS TO 11190

 

11390 CONTINUES TO BE IMMEDIATE HURDLE; TRAIL STOP-LOSS TO 11190

 

WORLD MARKETS

 

After trading in the positive territory for better part of the day on hopes of a new coronavirus relief package and optimism over Russia’s claim of developing a vaccine, Dow and S & P 500 plunged in late trade to end lower by 0.4% and 0.8% respectively on uncertainty over the package and fall in technology stocks. Nasdaq fell 1.7%. S & P 500 broke seven-day rising streak.

 

Russian President Vladimir Putin claimed the country had given regulatory approval for the world’s first Covid-19 vaccine.

 

Back in the US, Treasury Secretary Steven Mnuchin said Monday the White House is open to resuming coronavirus aid talks with Democrats. However, Senate Majority Leader Mitch McConnell said yesterday negotiations with Democrats were at a stalemate.

 

Earlier China reported a surge in car sales in July.

 

WTI crude settled 33 cents, or 0.8%, lower at $41.61 per barrel, while Brent fell 37 cents, or 0.8%, to $44.64 per barrel. Gold fell 5.5% to $1927 per ounce, the worst one-day decline in seven years.

 

European markets gained 1.7%-3%.

 

AT HOME

 

Benchmark indices gained nearly half a percent, with Nifty extending the winning streak to sixth straight day and closing at the highest level since 27th February. Sensex settled at 38407, up 225 points while Nifty added 52 points to finish at 11322. BSE mid-cap and small-cap indices however fell 0.2% each. BSE Metal index and Bankex gained 1.5% and 1.4% respectively, becoming top gainers among the sectoral indices while Telecom and Consumer Durables indices were the top losers, down 1.5% and 1.3% respectively.

 

FIIs net bought stocks and index futures worth Rs 1014 cr and 106 cr respectively but net sold stock futures worth Rs 2240 cr. DIIs were net sellers to the tune of Rs 1416 cr.

 

Rupee appreciated 12 paise to end at 74.77/$.

 

India's June IIP contracted 16.6% as against contraction of 33% in May and 57% in April.

 

OUTLOOK

 

Today morning, Nikkei is up 0.3% but Hang Seng and Shanghai are down 0.3% and 0.8% respectively. SGX Nifty is suggesting around 100 points lower start for our market.

 

In yesterday's report we had said that 11341, the top made on 29th July, continued to be immediate hurdle, upon crossover of which 11390, the top made on 5th March, would be the next target. We had also advised trailing stop-loss in long positions to 11137.

 

Nifty crossed 11341 hurdle and touched a high of 11376 before closing at 11322 but is set to open below 11250 today.

 

11390, the top made on 5th March, continues to be upside resistance to eye.

 

Immediate support on the hourly chart has moved up to 11190, with the stop-loss of which, trading longs should be held on to.

 

Ashok Leyland, Bharat Forge and Aurobindo Pharma will report their quarterly earnings today.

 

India's July CPI data will be released today.