TRAIL STOP-LOSS TO 16860

 

TRAIL STOP-LOSS TO 16860

 

WORLD MARKETS

 

US indices gained 0.8%-2% on Friday, with the Dow rising for the fifth day in a row while S & P 500 and Nasdaq had their fourth consecutive positive day.

 

Stocks extended their gains following the report that Russia on Thursday reportedly made a $117 million bond payment in dollars, thereby avoiding what would be a historic foreign currency debt default. Meanwhile, Russian forces have continued to bombard Ukrainian cities, with several missiles hitting an aircraft repair center on the outskirts of Lviv on Friday.

 

US 10-year treasury yield fell 5 bps to 2.14%. Dollar index inched up 0.2% to 98.23, snapping a 4-day losing streak. Spot gold fell 1.14% to $1,920.56 per ounce,

 

Brent crude futures advanced 1.21%, or $1.29, to $107.93 per barrel, after surging nearly 9% on Thursday in the largest percentage gain since mid-2020. WTI crude futures settled 1.67%, or $1.72, higher at $104.70 per barrel, adding to an 8% jump on Thursday.

 

European markets rose0.1%-0.4%.

 

The Bank of England announced on Thursday that it would be raising rates for a third consecutive meeting. Meanwhile, the Bank of Japan on Friday decided to hold its monetary policy steady.

 

For the week, US indices climbed 5.5%-8.1%, posting their best week since November 2020. European markets rose 3.5%-5.8%. In Asia, except 1.8% lower Shanghai, other markets gained 4%-6.6%. Brent and WTI crude fell 4.8% and 3.5% respectively. Gold plunged 3.4%.

 

AT HOME

 

It was a spectacular end to the roaring week as benchmark indices soared 1.8% each, rising for the seventh day in past eight sessions and closing at one-month high. Sensex settled at 57863, up 1047 points while Nifty added 311 points to finish at 17287. Nifty mid-cap and small-cap indices rose 1.4% and 1.2% respectively. Except 0.4% and 0.3% lower IT and Teck indices respectively, all the BSE sectoral indices ended higher, with Realty index leading the tally, up 3.1%, followed by 2.7% higher Consumer Durables and Energy indices.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2800 cr, 4304 cr and 823 cr respectively. DIIs were net sellers to the tune of Rs 678 cr.

 

Rupee appreciated 47 paise to end at 75.80/$.

 

For the week, Sensex and Nifty soared 4.2% and 4% respectively, registering biggest weekly gain in 13-months.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.1%-0.6% and SGX Nifty is trading around 17380, suggesting around 50 points higher start when compared to Thursday's close of Nifty futures.

 

In Thursday's report we had mentioned that 17300, around which 34-week moving average was placed, was the next upside level to eye and that immediate support on the hourly chart had moved up to 16750, with the stop-loss of which, trading longs could be held on to.

 

Nifty soared to touch a high of 17344 before closing at 17287.

 

Upon crossover of last week's high of 17344, next upside levels to eye would be 17490, 17639 and 17794, which are the tops made on 16, 10 and 2 February respectively; Immediate support on the hourly chart has moved up to 16860, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 36700, around which, 34-DMA as well as 200-DMA are placed, is the immediate hurdle to eye, above which, 37000, around which 20 week as well as 34-week moving averages are placed, would be the next upside level to eye; Meanwhile, trading longs can be held on to with the stop-loss of 35400, which is the immediate support on the hourly chart.