STAY LONG WITH THE STOP-LOSS OF 17610

 

STAY LONG WITH THE STOP-LOSS OF 17610

 

WORLD MARKETS

 

Dow and S & P 500 ended marginally higher while Nasdaq was little changed on Friday.

 

Bitcoin and technology stocks were negatively impacted after China’s central bank declared all cryptocurrency-related activities illegal.

 

Shares of China Evergrande Group in Hong Kong fell nearly 12% on reports that Chinese authorities have told local officials to prepare for the potential demise of Evergrande.

 

U.S. new-home sales increased for the month of August for the second straight month.

 

US 10-year treasury yield gained 4 bps to 1.453%. Dollar index eased slightly to 93.068. Spot gold rose 0.2% to $1,746.84 per ounce.

 

Brent crude rose 84 cents, or 1.1%, to settle at $78.09 a barrel, while WTI crude rose 68 cents, or 0.9%, to $73.98.

 

European markets fell 0.4%-1%. German business sentiment fell for the third consecutive month in September, a survey from the IFO Institute showed.

 

For the week, Dow and S & P 500 rose 0.6% and 0.5% respectively, with the former snapping 3-week losing streak while Nasdaq was little changed.

 

AT HOME

 

After gaining 0.7% in the initial trade, benchmark indices gave away more than half of the gains to end modestly higher. Sensex crossed 60000 milestone for the first time to settle at 60048, up 163 points while Nifty added 30 points to finish at 17853. Nifty mid-cap index fell 0.8% while small-cap index inched up 0.1%. BSE Telecom and Realty indices climbed 2.8% and 1.7% respectively, becoming top gainers among the sectoral indices while Metal index tumbled 2.3%, becoming the top loser, followed by 1.4% lower Healthcare index.

 

FIIs net bought stocks worth Rs 442 cr but net sold index futures and stock futures worth Rs 315 cr and 759 cr respectively. DIIs were net sellers to the tune of Rs 516 cr.

 

Rupee depreciated 5 paise to end at 73.69/$.

 

For the week, Sensex and Nifty gained 1.9% and 1.5% respectively, extending the winning streak to fifth consecutive week.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 0.4% and 0.3% respectively while Shanghai is little changed. SGX Nifty is suggesting around 100 points higher start for our market.

 

In Friday's report we had 18000-18050 was the next target zone for Nifty and had advised trailing the stop-loss in long positions to 17600.

 

Nifty, after touching a high of 17948, slipped to end at 17853 but is set to open near 17950 today.

 

18050-18100, where an upward sloping trendline adjoining recent tops is placed, continues to be the next target zone to eye. Above 18100, 18250 would be the next upside level to eye.

 

17646-17610, the gap created by Wednesday’s gap-up opening, is the immediate support area, and trading longs can be held on to with the stop-loss of 17610.