NIFTY STAGES SMART REBOUND TO CLOSE AT RECORD HIGH
ON FRIDAY; STAY LONG WITH THE STOP LOSS OF 7660
WORLD MARKETS
US markets were
shut on Friday on account of Independence Day.
European markets,
except a flat FTSE, ended with cuts ranging from 0.2%-1.5%. A profit warning by
Austria's Erste Bank pushed banking stocks lower.
ECB policymaker and
president of the German Bundesbank, Jens Weidmann, warned later on Thursday
that ECB stimulus policies could eventually lead to financial risks such as
exorbitant gains in real estate markets.
For the week
however, European markets gained between 0.7%-2% and US indices advanced
1.3%-2% with Dow closing above the 17000 mark for the first time.
International
Monetary Fund chief Christine Lagarde warned over the weekend that the pace of
global growth may be weaker than expected in the second half of the year due to
weak investment. Lagarde also said she does not see a hard landing for China.
AT HOME
After falling
nearly two third of a percent in the first half, benchmark indices saw a smart
rebound in the second half to end higher by half a percent on Friday, marking a
fresh all time high. Sensex gained 138 points to settle at 25962 while Nifty
ended at 7752, up 38 points. BSE mid-cap and small-cap indices gained 0.6% and
0.8% respectively. BSE Oil & Gas and Realty indices climbed 1.7% and 1.1%
respectively, becoming top gainer among the sectoral indices while Metal and
Consumer Durable indices lost 0.9% and 0.4% respectively.
FIIs net bought
stocks and index futures worth Rs 943 cr and 53 cr respectively but net sold
stock futures worth Rs 756 cr. DIIs were net sellers to the tune of Rs 853 cr.
Rupee appreciated 1
paise to close at 59.72/$.
For the week,
Sensex and Nifty gained 3.4% and 3.2% respectively.
OUTLOOK
Today morning Asian
markets are trading mixed with modest changes and SGX Nifty is suggesting about
15 points higher opening for our market.
Ever since Nifty
regained the higher-top higher-bottom formation last Monday by closing above
7589, we have been working with the target of 7800-7850. That continues to be
the immediate target area on the way up.
7660, the low made
on Friday, is the immediate support, with the stop loss of which trading longs
should be held on to.
Budget session of
the Parliament starts today. Railway budget will be presented tomorrow,
Economic survey will be tabled on Wednesday and the Union budget will be
presented on Thursday.
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