NIFTY SET TO ACHIEVE 17725

 

NIFTY SET TO ACHIEVE 17725

 

WORLD MARKETS

 

US indices surged 1.6%-2.9%, after a key inflation reading showed a higher-than-expected slowdown for rising prices.

 

The headline consumer price index for July rose 8.5% y-o-y and was flat compared with June. Expected figures were 8.7% and 0.2%, respectively. Core inflation, which strips out volatile food and energy prices, also saw a smaller-than-expected increase.

 

US 10-year treasury yield was unchanged at 2.785%. Dollar index tumbled 1% to 105.20. Gold eased 0.2% to $1791 per ounce.

 

Brent crude futures rose 68 cents, or 0.7%, to $96.99 a barrel and WTI futures gained 83 cents, or 0.9%, to $91.33.

 

European markets rose 0.25%-1.2%. German final July consumer price inflation came in at 7.5% y-o-y and 0.9% monthly, roughly in line with expectations.

 

China's Producer price index for July rose by 4.2% annually while consumer prices increased by 2.7%, both slightly below analyst expectations.

 

AT HOME

 

Sensex ended marginally lower while Nifty inched up a bit after a rangebound session. Sensex settled at 58817, down 35 points while Nifty added 9 points to finish at 17534. Nifty mid-cap and small-cap indices fell 0.2% and 0.4% respectively. BSE Metal and Capital Goods indices climbed 1.9% and 1.3% respectively, becoming top gainers among the sectoral indices while IT and Realty indices were the top losers, down 1% and 0.8% respectively.

 

FIIs net bought stocks worth Rs 1062 cr but net sold index futures and stock futures worth Rs 877 cr and 461 cr respectively. DIIs were net sellers to the tune of Rs 768 cr.

 

Rupee appreciated 14 paise to end at 79.52/$.

 

Hindalco surged after the company posted highest ever quarterly profit at Rs. 4119 cr, up 48% y-o-y.

 

 

 

OUTLOOK

 

Nikkei is shut today while Hang Seng and Shanghai are up 1.2% and 0.5% respectively. SGX Nifty is suggesting around 180 points higher start for our market.

 

In yesterday's report we had said that 17725, around which a trendline adjoining tops made in January and April is placed, was the next target to eye while immediate support on the hourly chart had moved up to 17350, with the stop-loss of which, trading longs could be held on to.

 

Nifty ended little changed at 17535 and is set to open near 17700 today.

 

With today's gap-up opening, Nifty would nearly achieve 17725 target we have been mentioning. Above 17725, 17900 around which a trendline adjoining tops made in October 2021 and January 2022 is placed, would be next upside level to eye; 17420 would be immediate support after today's gap-up start, with the stop-loss of which, trading longs can be held on to.

 

38640, 39425 are upside levels for Banknifty; 38000 is immediate support.