STAY LONG WITH THE STOP-LOSS OF 17200

 

STAY LONG WITH THE STOP-LOSS OF 17200

 

WORLD MARKETS

 

After a positive start on the back of better-than-feared inflation reading, US indices saw a sustained downward move through the session to end with cuts of 0.5%-0.8%.

 

August consumer price index rose 0.3% month-on-month, or 5.3% y-o-y, below the 0.4% increase and 5.4% annual gain expected. Core CPI, which excludes volatile food and energy prices, increased 4.0% after gaining 4.3% in July and rose just 0.1% month-on-month, coming in below expectations of 0.3%.

 

US 10-year treasury yield fell 4.7 basis points to 1.277%. Dollar index, after starting lower at 92.32, rebounded to end little changed near 92.60. Spot gold rose 0.6% to $1,803.69 per ounce.

 

Brent crude rose 13 cents, or 0.2% to $73.64 a barrel while WTI crude was unchanged at $70.45.

 

In Europe, FTSE and CAC fell 0.5% and 0.4% respectively, while DAX inched up 0.1%.

 

AT HOME

 

After rising half a percent at the open, benchmark indices gave away most of the gains to end just marginally higher. Sensex settled at 58247, up 69 points while Nifty added 24 points to finish at 17380. Nifty mid-cap index soared 1.2% while small-cap index added 0.3%. BSE Utilities and Consumer Discretionary Goods & Services indices climbed 1.6% and 1.3% respectively, becoming top gainers among the sectoral indices, while Metal and FMCG indices were the top losers, down 0.4% and 0.2% respectively.

 

FIIs net bought stocks worth Rs 1650 cr but net sold index futures and stock futures worth Rs 197 cr and 196 cr respectively. DIIs were net sellers to the tune of Rs 310 cr.

 

Rupee depreciated 1 paise to end at 73.68/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-1.2% but SGX Nifty is suggesting around 25 points higher start for our market.

 

In yesterday's report, we had said that, 17436, the top made last week, continued to be immediate hurdle, upon crossover of which, 17600-17650 would be the next target zone and had advised holding on to long positions with the stop-loss of 17200.

 

Nifty, after touching a high of 17438 in the initial trade, slipped to end at 17380.

 

17430-17440 is the congestion zone, where Nifty is repeatedly getting resisted. Upon decisive crossover of this, 17600-17650 would be the next target zone.

 

17250-17200 continues to be the support zone and trading longs can be held on to with the stop-loss of 17200. 

 

36151, the low made last week, continues to be the immediate support for Banknifty; 37140, the top made on 3rd September, is the immediate hurdle.