NIFTY HITS 16500-16550 TARGET ZONE

 

NIFTY HITS 16500-16550 TARGET ZONE

 

WORLD MARKETS

 

Dow and Nasdaq ended marginally in the green while S & P 500 added 0.2% on Friday.

 

Shares of Disney jumped 1% after it reported blowout fiscal third-quarter earnings.

 

The University of Michigan’s sentiment read for August came in at just 70.2,  the weakest since December 2011.

 

US 10-year treasury yield fell 8 bps to 1.287%. The dollar index fell 0.4% to 92.60. Spot gold jumped over 1% to $1,772.80 per ounce

 

Brent crude fell 21 cents, or 0.3%, to $71.10 per barrel while US crude was off by 12 cents, or 0.2%, at $68.97 a barrel.

 

European markets gained 0.2%-0.4%

 

For the week, Dow and the S&P 500 rose 0.8% and 0.7%, respectively while Nasdaq eased 0.1%. Oil was little changed this week.

 

AT HOME

 

Benchmark indices soared a percent to hit fresh record highs. Sensex settled at 55437, up 593 points while Nifty added 164 points to finish at 16529. Nifty mid-cap and small-cap indices however ended lower by 0.3% and 0.4% respectively. BSE Telecom index was the top gainer among the sectoral indices, up 1.8%, followed by 1.6% higher Teck and Capital Goods indices. Realty and Healthcare indices were the top losers, down 0.8% each.

 

FIIs net bought stocks, index futures and stock futures worth Rs 820 cr, 631 cr and 1437 cr respectively. DIIs were net buyers to the tune of Rs 150 cr.

 

Rupee was unchanged at 74.25/$.

 

For the week, Sensex and Nifty gained 2.1% and 1.8% respectively, extending the winning streak to second straight week. Nifty mid-cap and small-cap indices however ended lower by 1.4% and 2.3% respectively.

 

OUTLOOK

 

Today morning, Shanghai and Hang Seng are marginally in the red while Nikkei is down 1.6%. SGX Nifty is suggesting around 20 points lower start for our market.

 

In Friday's report we had said that 16500-16550 continued to be next target zone.

 

Nifty touched a high of 16543 before closing at 16529, achieving the target zone mentioned above and vindicating our view.

 

Upon crossover of 16550, 16650-16700 would be the next target zone.

 

16325 is the immediate support on the hourly chart, with the stop-loss of which, positional longs can be held on to.