19645 NEXT; TRAIL STOP-LOSS TO 19400

 

19645 NEXT; TRAIL STOP-LOSS TO 19400

 

WORLD MARKETS

 

U.S. indices fell 0.1%-0.6% as rise in treasury yield and oil weighed on the stocks.

 

U.S. 10-year treasury yield rose 8 bps to 4.264%. Dollar index jumped 0.7% to 104.79. Gold fell 0.6% to $1926 per ounce.

 

Oil prices rose to their highest in 10-months after Saudi Arabia and Russia extended their voluntary supply cuts to the end of the year. Brent crude futures

 rose 1.2% to $90.04 a barrel and WTI futures gained 1.3% to $86.69 a barrel.

 

In Europe, FTSE fell 0.2% while DAX and CAC fell a third of a percent each. Eurozone composite PMI for August came in at 46.7, below a preliminary read of 47 and marked the steepest fall in nearly three years as the services industry joined manufacturing in contraction territory.

 

China's August Caixin Services PMI hit an 8-month low at 51.8 Vs 54.1 Month-on-Month.

 

AT HOME

 

Benchmark indices gained nearly quarter of a percent each, extending the winning streak to third consecutive day and closing at the highest level after 9th August. Sensex settled at 65780, up 152 points while Nifty added 46 points to finish at 19575. Nifty mid-cap and small-cap indices gained surged 1.1% and 0.8% respectively, extending the winning streak to seventh straight day and hitting fresh record highs. Nifty Media and Healthcare indices climbed 3.2% and 1.6% respectively, becoming top gainers among the sectoral indices while Financial Services and Bank indices were the top losers, down 0.2% and 0.1% respectively.

 

FIIs net sold stocks and stock futures worth Rs 1725 cr and 1867 cr respectively but net bought index futures worth Rs 269 cr. DIIs were net buyers to the tune of Rs 1078 cr.

 

Rupee depreciated 25 paise to end at 83/$.

 

India's August Composite PMI came in at 60.9 Vs 61.9 in July.

 

OUTLOOK

 

Today morning, Nikkei is up 0.4% but Hang Seng and Shanghai are down 0.9% and 0.4% respectively. GIFT Nifty is suggesting a flattish start for our market.

 

In yesterday's report that upon crossover of 19545, 19645, the top made on 9th August, would be next upside level to eye and had advised holding on to trading longs with the stop-loss of 19400-19350 support zone.

 

Nifty rose to touch a high of 19587 before closing at 19575.

 

19645, the top made on 9th August, is the next upside level to eye; 19400 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty 34-DMA, placed around 44800 is the immediate hurdle, upon crossover of which, 45300, followed by 45775, the 61.8% and 78.6% retracement level of the 46370-43600 fall, would be next upside levels to eye; On the way down, 43830, the bottom made last week, is the immediate support.

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