NIFTY ACHIEVES 8295 TARGET; TRAIL STOP LOSS TO 8150

NIFTY ACHIEVES 8295 TARGET; TRAIL STOP LOSS TO 8150

WORLD MARKETS                             

US indices soared 1.3% each, extending the plus-1 percent gains to third straight day and recovering about 80% of post-Brexit losses.

US oil fell 3.1% to $48.33 a barrel as returning supply from Nigeria added pressure to the market.

Dollar index rose to 95.96 from 95.66. Gold fell $6 to $1321 an ounce.

US weekly jobless claims came in at 268,000, slightly above the expected 267,000. The Chicago PMI for June came in at 56.8, well above a May reading of 49.3.

European markets, after trading in a narrow range for much of the session, spiked up to close with gains of 0.7%-2.3% after the Bank of England governor Mark Carney, in a speech said that the bank could deploy further stimulus this summer and had a wide range of tools available.

Pound fell more than a percent to 1.3204 before recovering to 1.3327

On the data front, the U.K. economy grew by 0.4% in the first quarter of 2016, in line with expectations; while annual inflation in the euro zone is expected to come in at 0.1% for June, up from -0.1% in May, according to a flash estimate.

AT HOME

Bulls continued to call the shots as benchmark indices soared a percent on the last day of the month and quarter, extending the winning streak to fourth straight day. Sensex added 259 points to settle at 27000 while Nifty finished at 8288, up 84 points. For Nifty, it was the highest closing since 23rd October. BSE mid-cap and small-cap indices gained 1.3% and 0.9% respectively. All the BSE sectoral indices ended in green with Realty and Power indices leading the tally, up 2.4% and 2.2% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1107 cr, 2840 cr and 226 cr respectively. DIIs were net sellers to the tune of Rs 191 cr.

Rupee appreciated 16 paise to end at 67.52/$.

India's core sector output in May fell to 2.8% from 8.5% in April.

Oil marketing companies cut petrol and diesel price by 89 paise and 49 paise per liter respectively.

OUTLOOK

China's June official manufacturing PMI has come in at 50, slightly down from 50.1 month on month. Caixin Services PMI has improved to 53.7 from 53.1.

Asian markets are trading with gains of upto a percent and SGX Nifty is suggesting a flattish start for our market.

We had advised going long after Nifty crossed 8150-8188 resistance are for the target of 8295, which was the top made in early June. The benchmark touched a high of 8308 before closing at 8287, achieving this target.

As mentioned yesterday, a decisive crossover of 8295 is required for fresh upmove and if that happens next major target to eye would be 8655, which is the 52-week high made in July last year.

Meanwhile immediate support on the hourly chart has moved up to 8150, with the stop loss of which trading longs can be held on to.

Auto companies will report June sales figures.