COMMODITIES CRUMBLE ON STRONG DOLLAR; STAY LONG WITH THE STOP LOSS OF
7960
WORLD MARKETS
Dow and
S & P 500 ended modestly lower as strong dollar weighed on commodity prices
and shares of related companies.
The U.S.
dollar index jumped to 82.97, marking an over one-year high on robust economic
data. The pace of manufacturing growth soared to a three-year high in August
while July construction spending was at its highest in over five years.
European
markets ended flat to modestly higher. Data for the euro zone showed that
producer prices fell 0.1% on the month in July, as expected. Year on year,
prices fell 1.1%. Construction data for the U.K. showed a better-than-expected
rise, with the index hitting its strongest in seven months in August.
Strong
dollar pushed Brent crude to $100.44/bbl, its lowest level since May 2013 and
gold plunged nearly 2% to $1267 an ounce. Nymex crude plunged more than 3% to
$92.9 a barrel.
AT HOME
It was yet another
record setting day as benchmark indices gained nearly two third of a percent to
scale fresh all-time high. Sensex climbed 152 points to settle at 27019 while
Nifty finished at 8083, up 55 points. BSE mid-cap and small-cap indices gained
0.8% and 0.9% respectively. BSE Consumer Durable and Healthcare indices gained
the most among the sectoral indices, rising 2.8% and 1.8% respectively whereas
Metal and Power indices lost 0.8% and 0.02% respectively.
FIIs net bought
stocks and index futures worth Rs 673 cr and 190 cr respectively but net sold
stock futures worth Rs 87 cr. DIIs were net sellers to the tune of Rs 168 cr.
Rupee fell 16 paise
to close at 60.68/$.
OUTLOOK
Today morning Asian
markets are trading with modest gains and SGX Nifty is suggesting a marginally
higher start for our market.
In yesterday's
report we had reminded of 8150 target projected in our SAMVAT report published
on 1st November 2013. Nifty yesterday touched a high of 8102 before closing at
8083.
8150 continues to
be the target on the way up and "hold trading longs with a trailing stop
loss" continues to be the advise. Immediate support on the hourly chart
has now moved up to 7960, which should serves as the new stop loss.
India’s HSBC
Services PMI for August will come out on today. In July, the data had shown
deterioration to 52.2 from 54.4 in June.
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