STAY LONG WITH THE STOP-LOSS OF 15511

 

STAY LONG WITH THE STOP-LOSS OF 15511

 

WORLD MARKETS

 

US markets were shut yesterday for July 4 holiday.

 

In Europe, FTSE and CAC rose 0.9% and 0.4% respectively but DAX fell 0.3%. Euro zone producer prices for May rose 0.7% month-n-month and 36.3% y-o-y, slightly less than expected.

 

Dollar index was flat at 105.13. Gold fell 0.2% to $1807 per ounce.

 

Brent as well as WTI crude eased 0.3% each to $111.28 and $108.11 per barrel respectively.

 

AT HOME

 

After dipping nearly half a percent in the first hour, benchmark indices reversed the losses through the session to end higher by half a percent, snapping a 3-day losing streak. Sensex settled at 53234, up 326 points while Nifty finished at 15835, up 83 points. Nifty mid-cap and small-cap indices gained 0.7% and 0.64% respectively. BSE FMCG index climbed 2.5%, becoming top gainer among the sectoral indices, followed by 1.1% higher Bankex. Metal index was the top loser, down 1.5%, followed by half a percent lower Energy and Oil & Gas indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2150 cr, 615 cr and 358 cr respectively. DIIs were net buyers to the tune of Rs 1688 cr.

 

Rupee appreciated 10 paise to end at 78.95/$.

 

India's trade deficit soared to a record high of $25.63 bn in June from $24.3 bn in May. Exports rose 17% y-o-y while imports surged 51%.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1% each and Shanghai is marginally higher. US futures are up 0.4%-0.7%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had reiterated the view that 34-DMA, placed around 16030, was the immediate hurdle while 15511, the low made Friday, was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty rose to touch a high of 15852 before closing at 15835.

 

34-DMA, placed around 16020, continues to be immediate hurdle, upon crossover of which, 16172, the upper end of the gap created by gap-down opening on 13th June, would be the next target; 15511, the low made Friday, continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 34147, the top made last week, is the immediate hurdle, upon crossover of which, 34346, the upper end of the gap created by gap-down opening on 13th June, would be the next upside level to eye; Immediate support on the hourly chart has moved up to 33500, with the stop-loss of which, trading longs can be held on to.