TRAIL STOP-LOSS TO 19500

 

TRAIL STOP-LOSS TO 19500

 

WORLD MARKETS

 

U.S. indices gained 0.7%-1.1% on the back of better-than-expected earnings, with Dow rising the most and notching a seventh straight positive session. All three major averages posted their highest closes since April 2022.

 

Bank of America, Bank of New York Mellon and Morgan Stanley earnings all exceeding expectations.

 

U.S. retail sales rose less than expected at 0.2% in June. Data for May was revised higher to show sales gaining 0.5% instead of 0.3% as previously reported. Core sales, excluding automobiles, gasoline, building materials and food services, increased 0.6% in June. Data for May was revised higher to 0.3% instead of the previously reported 0.2%. Other data showed production at U.S. factories unexpectedly fell in June, but rebounded in the second quarter.

 

U.S. 10-year treasury yield fell 2 bps to 3.789%. Dollar index was flat at 99.92. Gold jumped 1.2% to $1978 per ounce.

 

Brent futures rose 1.4% to $79.63 a barrel and WTI crude rose 2.2% to settle at $75.75.

 

European markets rose 0.2%-0.6%.

 

AT HOME

 

Sensex and Nifty gained 0.3% and 0.2% respectively, extending the winning streak to fourth consecutive day and hit fresh record highs. Sensex settled at 66795, up 205 points while Nifty added 38 points to finish at 19749. Nifty mid-cap and small-cap indices fell 0.1% and 0.9% respectively. Nifty Media and PSU Bank indices were the top losers among the sectoral indices, down 1.8% and 1.2% respectively while IT index surged 1.1%, becoming top gainer, followed by 0.2% higher Oil & Gas index.

 

FIIs net bought stocks and index futures worth Rs 2116 cr and 501 cr respectively but net sold stock futures worth Rs 545 cr. DIIs were net sellers to the tune of Rs 1318 cr.

 

Rupee was unchanged at 82.04/$.

 

Indusind Bank reported strong numbers with Net Interest Margin hitting 8-year high while asset quality was best in 10 quarters.

 

OUTLOOK

 

Business sentiment among manufacturers in Japan declined for the first time in six months in July, according to the Reuters Tankan survey.

 

Today morning, Nikkei is up 1.1%, Shanghai is little changed while Hang Seng is down 1.4%. GIFT Nifty is suggesting around 35 points higher start for our market.

 

In yesterday's report we had said that Upon crossover of 19750, 20071 would be the next major target to eye and that 19500-19450 was the immediate support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 19819, slipped to end at 19749. The benchmark is set to open near 19800 today.

 

Upon crossover of yesterday's high, i.e. 19819, Nifty will March towards the big target of 20071, which is the Fibonacci extension level of the entire setup since the 15183 bottom made in June 2022; 19550-19500 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, upon crossover of yesterday’s high, i.e. 45905, next target to eye would around 46500; 44900 is the immediate support.

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