STAY LONG WITH THE STOP-LOSS OF 17600

 

STAY LONG WITH THE STOP-LOSS OF 17600

 

WORLD MARKETS

 

US indices surged 1%-1.5%, extending Wednesday's upmove, after the Fed statements which were taken positively by the markets and helped by fading concerns over China’s cash-strapped property developer Evergrande.

 

Weekly jobless claims for the week ended Sept. 18 totaled 351,000, topping the 320,000 estimate.

 

US 10-year treasury yield jumped 10 bps to 1.434%, rising above 1.4% for the first time since July. Dollar index fell 0.5% to 93.037. Spot gold declined 0.9% to $1,751.56 per ounce.

 

Brent crude advanced 1.4% to settle at $77.25 a barrel while WTI crude rose 1.5% to $73.3 per barrel.

 

In Europe, FTSE eased 0.1% while DAX and CAC gained nearly a percent. The Bank of England kept monetary policy unchanged and downgraded economic growth projections for the third quarter of this year.

 

AT HOME

 

Benchmark indices soared 1.6% each to hit fresh record highs. Nifty had its best day in 4-months while Sensex gained the most after 3rd August. Sensex settled at 59885, up 958 points while Nifty added 276 points to finish at 17823. Nifty mid-cap and small-cap indices climbed 1.5% and 0.8% respectively with the former making a record high on closing basis. Except 0.1% lower FMCG index, all the BSE sectoral indices ended in green, with Realty index again leading the tally, up 8.7%, followed by 2.3% higher Bankex.

 

FIIs net bought stocks, index futures and stock futures worth Rs 358 cr, 742 cr and 651 cr respectively. DIIs were net buyers to the tune of Rs 1173 cr.

 

Rupee appreciated 23 paise to end at 73.64/$.

 

OUTLOOK

 

Today morning, Nikkei is up nearly 2% but Hang Seng and Shanghai are down 0.5% and 0.2% respectively. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 17623, the top made Monday, continued to be immediate hurdle, above which, 17793, the top made last week, would be the next target to eye.

 

Nifty crossed 17623 hurdle and surged all the way to 17844 before closing at 17823.

 

18000-18050, where a rising trendline adjoining recent tops is placed, is the next target zone to eye. Above 18050, 18200-18250 would be the next target area.

 

17600 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

38113, the top made last week, is the upside level to eye for Banknifty; 37150 is the immediate support.