TRAIL STOP-LOSS TO 16440

 

TRAIL STOP-LOSS TO 16440

 

WORLD MARKETS

 

US indices fell 0.7%-0.9% as the retail sales data disappointed. Dow and S & P 500 snapped 5-session winning streak.

 

Retail sales fell 1.1% in June, more than the expected 0.3% decline and compared to a revised 0.7% gain in June. Excluding autos, sales were down 0.4% compared to estimates of a 0.2% slowdown.

 

US 10-year treasury yield were flat at 1.258%. Dollar index rose 0.6% to 93.119Spot gold fell 0.2%. to $1,784.02 per ounce.

 

Oil fell for the fourth consecutive day. Brent crude eased 11 cents, or 0.2%, to $69.39 per barrel while WTI slid 38 cents, or 0.6%, to $66.91 a barrel.

 

In Europe, FTSE rose 0.4%, DAX was flat while CAC fell 0.3%. UK's headline unemployment rate for the second quarter came in at 4.7%, slightly lower than estimate.  Euro zone economy expanded 2% in the second quarter, reaffirming an earlier reading. Employment in the bloc rose 0.5% on a quarterly basis in the June quarter, matching estimate.

 

AT HOME

 

Sensex and Nifty gained 0.4% and 0.3% respectively, both hitting fresh record highs and the later extending the winning streak to seventh straight day. Sensex added 210 points to settle at 55792 while Nifty finished at 16614, up 51 points. Nifty mid-cap index rose 0.3% but the small-cap index fell 0.25%. BSE IT and Teck indices climbed 2.3% and 1.9% respectively, becoming top gainers among the sectoral indices while Metal index tumbled 2.6%, becoming the top loser, followed by 1.1% lower Telecom index.

 

FIIs net sold stocks and index futures worth Rs 344 cr and 459 cr respectively but net bought stock futures worth Rs 1580 cr. DIIs were net buyers to the tune of Rs 266 cr.

 

Rupee depreciated 10 paise to end at 74.35/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with modest gains and SGX Nifty is suggesting around 35 points higher start for our market.

 

Readers would recall that we had turned our view bullish after 15950 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

 

In yesterday's report we had reiterated the target zone of 16650-16700.

 

Nifty touched a high of 16628 before closing at 16615 and is set to open near 16650 today.

 

16700 continues to be next upside target.

 

Immediate support on the hourly chart has moved up to 16440, with the stop-loss of which, trading longs can be held on to.

 

36300 continues to be immediate hurdle for Banknifty above which 37200-37200 would be next target zone; 35531, the low made last week, is the important immediate support.