STAY LONG WITH THE STOP-LOSS OF 17575

 

STAY LONG WITH THE STOP-LOSS OF 17575

 

WORLD MARKETS

 

Dow and S & P 500 rose 0.7% and 0.2% respectively thanks to a boost from Walmart and Home Depot while Nasdaq ended lower by 0.2%.

 

Walmart reiterated its second-half outlook and Home Depot maintained its 2022 guidance.

 

Housing starts declined 9.6% in June, well above the expected 2.5% drop expected. Building permits slipped 1.3% but beat estimates. Industrial production rose more than expected in July.

 

US 10-year treasury yield rose 2 bps to 2.806%. Dollar index was flat at 106.48. Gold eased 0.2% to $1776 per ounce.

 

Brent as well as WTI crude futures ended the day 0.9% lower at $92.61 and $87.10 per barrel respectively.

 

In Europe, FTSE and CAC rose a third of a percent each while DAX gained 0.7%.

 

AT HOME

 

Sensex and Nifty gained 0.6% and 0.7% respectively to close at the highest level after 5th April and with Nifty extending the winning streak to sixth consecutive day. Sensex settled at 59842, up 379 points while Nifty added 127 points to finish at 17825. Nifty mid-cap and small-cap indices climbed 1.4% and 1% respectively. Except 0.2% lower Telecom and Metal indices, all the BSE sectoral indices ended higher, with Auto and Realty indices leading the tally, up 2.6% and 2% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1377 cr, 225 cr and 1314 cr respectively. DIIs were net sellers to the tune of Rs 136 cr.

 

India's July WPI inflation eased to 13.93% from 15.18% in the previous month.

 

OUTLOOK

 

Today morning, Nikkei is up 0.8% while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 17850-17900 is the next target area and had advised trailing stop-loss in longs to 17550.

 

Nifty touched a high of 17839 before closing at 17825.

 

17850-17900, around which a trendline adjoining tops made in October 2021 and January 2022 is placed, continues to be upside zone to eye; Once this hurdle is taken out, 18115, the top made in April, would be the next target. 17575 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

39760, the 78.6% retracement level of the entire 41830-34018 fall, is the next target for Banknifty; 38500 is the immediate support, with the stop-loss of which, trading longs can be held on to.