STAY SHORT WITH THE STOP-LOSS OF 19550

 

STAY SHORT WITH THE STOP-LOSS OF 19550

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.8% each while Nasdaq tumbled 1.2%, extending the losing streak to third straight day

 

Cisco Systems gained more than 3% on a better-than-expected quarterly earnings but Walmart fell more than 2% even after reporting an earnings and revenue beat.

 

Jobless claims for the week ended Aug. 12 fell from the previous period and came in slightly under the estimate. The Philadelphia Federal Reserve also reported an uptick in its manufacturing index in August.

 

U.S. 10-year treasury yield rose 3 bps to 4.28%. Dollar index was flat at 103.44. Gold fell 0.1% to $1890 per ounce.

 

Brent crude futures rose 0.5% to $83.86 a barrel and WTI crude rose 0.9% to $80.13 a barrel, snapping a 3-day losing streak.

 

European markets fell 0.6%-1%.

 

AT HOME

 

Sensex and Nifty fell 0.6% and 0.5% respectively, snapping a 2-day winning streak and closing at the lowest level after 30th June and 10th July respectively. Sensex settled at 65151, down 388 points while Nifty lost 100 points to finish at 19365. Nifty mid-cap and small-cap indices gained 0.25% and 0.1% respectively, extending yesterday's rebound. Nifty Consumer Durables and PSU Bank indices climbed 1.8% and 1.4% respectively, becoming top gainers among the sectoral indices while FMCG and Oil & Gas indices were the top losers, down 0.9% and 0.8% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1511 cr, 216 cr and 3556 cr respectively. DIIs were net sellers to the tune of Rs 314 cr.

 

Rupee depreciated 20 paise to end at 83.15/$.

 

OUTLOOK

 

Japan’s core inflation rate fell to 3.1% in July, down from 3.3% in June. Headline inflation remained at 3.3%. Meanwhile, embattled Chinese real estate giant Evergrande has filed for bankruptcy protection in a U.S bankruptcy court.

 

Today morning, Shanghai is up 0.3% but Hang Seng and Nikkei are down 0.3% each. GIFT Nifty is suggesting around 80 points lower start for our market.

 

In yesterday's report we had said that 19160 and 18934, the 61.8% and 78.6% retracement levels of the 18646-19991 upmove seen since 26th June, were the next downside levels to eye and had advised holding on to short positions with the stop-loss of 19550.

 

Nifty fell to 19326 before closing at 19365. The benchmark is set to open near 19300 today.

 

19160 and 18934, the 61.8% and 78.6% retracement levels of the 18646-19991 upmove seen since 26th June, continue to be next downside levels to eye; 19550 continues to be immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 43345, the bottom made in June, is the next support;44500 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

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