Monday, October 18, 2021

TRAIL STOP-LOSS TO 18060

 

TRAIL STOP-LOSS TO 18060

 

WORLD MARKETS

 

Dow climbed 1.6% while S & P 500 and Nasdaq surged 1.7% each on Thursday on better-than-expected earnings reports and jobless claim data while falling rates boosted technology stocks. S&P 500 posted its biggest jump since March. Shares of Walgreens Boots Alliance, UnitedHealth, Bank of America, Morgan Stanley and Citigroup rose after beating earnings expectations. Wells Fargo shares declined 1.6% despite an earnings beat.

 

Weekly jobless claims stood at 293,000, lower than the 318,000 estimate and dropping below 300,000 for the first time in 19 months. September’s producer price index increased by 0.5%, compared with estimate of 0.6% and marking the smallest gain in nine months.

 

Oil prices rose nearly a percent after Saudi Arabia dismissed requests for additional OPEC+ supply, while the International Energy Agency said spikes in natural gas prices could bolster oil demand from power generators.

 

On Friday, US indices gained 0.5%-1.1% on the back of strong retail sales data and better-than-expected earnings from Goldman Sachs.

 

Retail sales posted a surprise increase in September, rising 0.7% as against estimate of a 0.2% decline.

 

Goldman Sachs' surged 3.8% after results beat significantly on the top and bottom line.

 

US 10-year treasury yield climbed 5.3 bps to 1.572%. Dollar index was little changed at 94.034. Spot gold held steady at $1,794.09 per ounce.

 

Brent crude futures advanced 1% to settle at $84.86 per barrel while WTI futures settled 97 cents, or 1.2%, higher at $82.28 per barrel, boosted by forecasts of a supply deficit in the next few months as the easing of coronavirus-related travel restrictions spurs demand.

 

European markets rose 0.4%-0.8%. French September consumer price inflation came in at negative 0.2% month-on-month. On an annual basis, it was 2.7% higher.

 

For the week, US indices gained 1.6%-2.2%. European markets rose 2%-2.6%. In Asia, except 0.6% lower Shanghai, other markets gained 2%-3.6% with Nikkei on the top. WTI crude surged 3.9% to $82.66, extending the winning streak to eighth consecutive week and hitting 7-year high. Brent crude rose 2.8% to $84.9, rising for the sixth consecutive week and hitting 3-year high.

 

AT HOME

 

It was yet another bull day as benchmark indices soared nearly a percent, extending the winning streak to sixth consecutive day and hitting fresh record highs. Sensex settled at 61305, up 568 points while Nifty added 176 points to finish at 18338. Nifty mid-cap and small-cap indices gained 0.6% each. Except 0.7% lower Auto index, all the BSE sectoral indices ended in green, with Bankex leading the tally, up 1.7%, followed by 1.4% higher Finance and Metal indices.

 

Rupee appreciated 11 paise to end at 75.25/$.

 

For the week, Sensex and Nifty gained 2.1% and 2.5% respectively.

 

India's September WPI inflation eased to 10.66% from 11.39% in August.

 

HDFC Bank reported strong Q2 earnings and while HCL Tech was a miss on revenue as well as margin front.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-0.7%. SGX Nifty is trading around 18440, suggesting around 90 points higher start for our market when compared to Thursday's close of Nifty futures.

 

In Thursday's report we had said that 18400-18450 was the next target zone while immediate support on the hourly chart had moved up to 17950, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged to touch a high of 18350 before closing at 18338 and is set to open near 18400 today.

 

18450-18500, where a rising trendline adjoining recent tops is placed, is the next target/resistance zone to eye; Immediate support on the hourly chart has moved up to 18060, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 39900 is the next upside target, upon crossover of which, 40300-40500 would be the next target zone; 38500 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

L&T and Ultratech Cement will report their quarterly earnings today.

 

No comments:

Post a Comment