TRAIL STOP-LOSS TO 16438

 

TRAIL STOP-LOSS TO 16438

 

WORLD MARKETS

 

US indices surged 1.3%-2.7% after private payrolls data disappointed, raising hopes that Federal Reserve could be less aggressive in tightening monetary policy.

 

Data from ADP showed private sector employment rose by just 128,000 in May, far short of the 299,000 estimate and marked a decline from the downwardly revised 202,000 in April.

 

US 10-year treasury yield were flat at 2.913%. Dollar index tumbled 0.8% to 101.75. Gold jumped 1.2% to $1869 per ounce.

 

OPEC and its oil-producing allies agreed to hike output in July and August by a larger-than-expected amount. Oil prices however reversed early losses to end higher. WTI crude futures ended the day at $116.87 per barrel for a gain of 1.4% and Brent crude added 1.14% to settle at $117.61.

 

In Europe, FTSE was closed while DAX and CAC rose 1% and 1.3% respectively.

 

AT HOME

 

Sensex and Nifty climbed 0.8% and 0.4% respectively, snapping 2-day losing streak. Sensex settled at 55818, up 436 points while Nifty added 105 points to finish at 16628. Nifty mid-cap and small-cap indices rose 0.7% and 0.6% respectively. BSE Energy and Oil & Gas indices climbed 2.3% and 2.1% respectively, becoming top gainers among the sectoral indices while Auto and Capital Goods indices were the top losers, down 0.6% and 0.4% respectively.

 

FIIs net sold stocks and index futures worth Rs 452 cr and 1350 cr respectively but net bought stock futures worth Rs 613 cr. DIIs were net buyers to the tune of Rs 131 cr.

 

Rupee depreciated 8 paise to end at 77.60/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-1% and SGX Nifty is suggesting around 180 points higher start for our market.

 

In yesterday's report we had said that 16370, the lower end of the gap created by Monday's gap-up opening, continued to be immediate support, while 16700, around which Nifty has made double top, continues to be immediate hurdle.

 

Nifty, after touching a low of 16443, rebounded to end at 16628. The benchmark is set to open above 16750 today.

 

16925, the 50% retracement level of the entire 18115-15735 fall, is the next upside level to eye; 16438, the low made Wednesday, would now act as immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, upon crossover of Monday's high, 36083, next upside level to eye would be 36566, the 61.8% retracement level of the entire 38765-33000 fall; 35285, the low made Wednesday, would act as immediate support, below which, 34900-34800 would be next support area.