17725 ACHIEVED; 17900 NEXT

 

17725 ACHIEVED; 17900 NEXT

 

WORLD MARKETS

 

After a higher start on the back of positive PPI data, US indices lost steam as the day progressed and ended off the day's highs. Dow ended marginally higher while S & P 500 and Nasdaq fell 0.1% and 0.6% respectively.

 

July producer price index showed a surprise decline of 0.5% month-on-month, compared with an estimate of a 0.2% gain. The PPI reading excluding food and energy rose less than expected.

 

US 10-year treasury yield rose 11 bps to 2.889%. Dollar index was flattish at 105.09. Gold was little changed at $1789 per ounce.

 

Oil prices rose after the International Energy Agency raised its oil demand growth forecast for this year. Brent crude futures gained 2.7% to $100.03 a barrel, while WTI crude futures advanced 3.2% to $94.87.

 

In Europe, FTSE fell 0.6%, DAX was flat while CAC rose 0.3%.

 

AT HOME

 

Sensex and Nifty gained 0.9% and 0.7% respectively to close at 4-month high. Sensex settled at 59332, up 515 points while Nifty added 124 points to finish at 17659. Nifty mid-cap and small-cap indices gained 0.9% each. BSE Bankex and IT indices gained 1.6% each, becoming top gainers among the sectoral indices while FMCG and Metal indices were the top losers, down 0.7% and 0.2% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2298 cr, 922 cr and 983 cr respectively. DIIs were net sellers to the tune of Rs 730 cr.

 

Rupee depreciated 12 paise to end at 79.64/$.

 

OUTLOOK

 

Today morning, Nikkei is up more than 2% while Hang Seng and Shanghai are modestly lower. SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had reiterated 17725 target and has advised trailing stop-loss in longs to 17420.

 

Nifty touched a high of 17719 before closing at 17659, nearly achieving target mentioned above and vindicating our view.

 

17719, the top made yesterday, is the immediate hurdle, upon crossover of which, 17900, around which a trendline adjoining tops made in October 2021 and January 2022 is placed, would be next upside level to eye; 17430 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

39425, the top made in February, is the next target for Banknifty; 38100 is immediate support.

 

Hero Motocorp and ONGC will report their quarterly earnings today.