20250 NEXT; TRAIL STOP-LOSS TO 19700

 

20250 NEXT; TRAIL STOP-LOSS TO 19700

 

WORLD MARKETS

 

U.S. indices gained 0.25%-1.1% with Nasdaq on the top.

 

Tesla shares jumped 10% after Morgan Stanley upgraded the stock.  Qualcomm rose nearly 4% after the semiconductor company said it will supply Apple with 5G modems for smartphones through 2026.

 

The Wall Street Journal reported Sunday that there was a consensus within the Fed to not hike rates this month.

 

U.S. 10-year treasury yield rose 3 bps to 4.294%. Dollar index slipped half a percent to 104.52. Gold inched up 0.2% to $1922 per ounce.

 

The yen strengthened sharply against the dollar after comments from Bank of Japan Governor Kazuo Ueda that the BOJ could end its negative interest rate policy if it is determined the inflation target can be achieved.

 

Brent crude settled down 1 cent to $90.64 a barrel while U.S. West Texas Intermediate crude settled down 22 cents to $87.29.

 

European markets rose 0.25%-1%.

 

AT HOME

 

Sensex and Nifty surged 0.8% and 0.9% respectively, extending the winning streak to seventh straight day. Sensex settled at 67127, up 528 points. Nifty crossed 20000 mark for the first time and settled 176 points higher at 19996. Nifty mid-cap and small-cap indices soared 1.1% and 1.3% respectively, extending the winning streak to 11th consecutive day and hit fresh record highs. Except 0.3% lower Media index, all the NSE sectoral indices ended higher with PSU Bank index being the top gainer, up 3.1%, followed by 1.8% higher Metal index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1473 cr, 788 cr and 132 cr respectively. DIIs were net buyers to the tune of Rs 366 cr.

 

Rupee depreciated 8 paise to end at 83.03/$.

 

OUTLOOK

 

Today morning, Nikkei is marginally in the green but Hang Seng and Shanghai are down 0.8% and 0.2% respectively. GIFT Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that 19991, the record high made on 20th July, was the next upside level to eye while 19600 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged to touch a high of 20008 before closing at 19996.

 

20250, around which, a rising trendline adjoining tops made in December 2022 and July 2023 is placed, is the next upside target to eye; 19700 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 45777, the 78.6% retracement level of the 46370-43600 fall seen since 21st July, is the next upside level to eye, above which, 46370, the record high made on 21st July can be retested; On the way down, 44800 is the immediate support on the hourly chart.

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