STAY LONG WITH THE STOP-LOSS OF 15780

 

STAY LONG WITH THE STOP-LOSS OF 15780

 

WORLD MARKETS

 

Dow inched up 0.2% while S & P 500 and Nasdaq fell 0.3% and 0.7% respectively.

 

Weekly jobless claims totaled 360,000, as expected, for the week ended July 10, compared to 373,000 the week prior and hit new pandemic era low.

 

Morgan Stanley's top and bottom line beat estimates thanks to strong trading and investment banking performance.

 

The yield on the benchmark 10-year Treasury note fell 6 bps to 1.296%. Dollar index, after touching a low of 92.272, rebounded to end 0.1% higher at 92.504. Spot gold rose 0.1% to $1,829.16 per ounce.

 

Brent oil dipped 1.73% to $73.47 per barrel while U.S. WTI crude finished 2.02% lower at $71.65 per barrel.

 

China's second quarter GDP grew at 7.9% y-o-y, falling short of estimate of 8.1% growth. Retail sales rose 12.1% y-o-y in June, more than the expected 11% level. Industrial production grew by 8.3%, greater than the 7.8% estimate.

 

European markets slipped 1%-1.5%. U.K. Bank of England Deputy Governor Wednesday said that the central bank may need to consider tightening policy sooner than expected as inflation could rise to 4% later this year.

 

AT HOME

 

Benchmark indices gained nearly half a percent to notch record highs. Sensex added 255 points to settle at 53159 while Nifty finished at 15924, up 70 points. Nifty mid-cap and small-cap indices rose 0.5% and 1% respectively, also hitting record highs.  BSE Realty index soared 4%, becoming top gainer among the sectoral indices, followed by 2% higher Capital Goods index. Oil & Gas and Telecom indices were the top losers, down 0.9% and 0.8% respectively.

 

FIIs net sold stocks worth Rs 265 cr but net bought index futures and stock futures worth Rs 706 cr and 154 cr respectively. DIIs were net buyers to the tune of Rs 439 cr.

 

Rupee appreciated 4 paise to end at 74.54/$.

 

Wipro reported strong numbers with a beat on revenue and margin front. Organic revenue growth was the highest in last 38 quarters.

 

OUTLOOK

 

Today morning, Nikkei is down a percent while Hang Seng and Shanghai are down 0.3% and 0.2% respectively. SGX Nifty is suggesting around 15 points higher start for our market.

 

In yesterday's report we had said that 15915 continued to be immediate hurdle, upon crossover of which 16200 would be the next upside target.

 

Nifty crossed 15915 hurdle and surged all the way to 15952 before closing at 15924.

 

16200 is the next upside target to eye.

 

Immediate support on the hourly chart has moved up to 15780, with the stop-loss of which, trading longs can be held on to.