9725 CONTINUES TO BE IMMEDIATE UPSIDE TARGET; 9550 SUPPORT

9725 CONTINUES TO BE IMMEDIATE UPSIDE TARGET; 9550 SUPPORT

WORLD MARKETS                             

US indices gained 0.3%-0.9% on Friday, shrugging off weaker-than-expected jobs report and notching fresh record high.

US economy added 138,000 jobs last month, well below the expected 185,000. Wages also grew less than expected, with average hourly earnings rising at a 2.5%t annualized rate. The unemployment rate, however, fell to 4.3% from 4.4%.

The dollar subsequently slipped to seven-month lows against the euro.

WTI crude fell 1.5% to $47.66 a barrel for its lowest close since May 10. Brent slipped 1.3% to $49.95.

European markets, except a flat FTSE and Italy, gained 0.2%-1.2% with DAX on the top.

For the week US indices gained 0.6%-1.5%. In Europe, FTSE ended flat while CAC was up 0.1% and DAX soared 1.8%. In Asia, Shanghai was down 0.2% but Hang Seng and Nikkei added 1.1% and 2.5% respectively.

Over the weekend, at least seven people were killed and 48 injured in a possible terror in Central London.

AT HOME

Benchmark indices gained four tenth of a percent on Friday, breaking two-day losing streak and notching a fresh record high. Sensex added 136 points to settle at 31273 while Nifty finished at 9654, up 37 points. BSE mid-cap and small-cap indices gained 0.7% and 0.5% respectively. BSE Realty index gained 1.2%, becoming top gainer among the sectoral indices, followed by 1.1% each rise in Healthcare and Consumer Durable indices. Oil & Gas and Energy indices were the top losers, down 0.4% and 0.2% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 59 cr, 210 cr and 1 cr respectively. DIIs were net buyers to the tune of Rs 222 cr.

Rupee appreciated 4 paise to end at 64.44/$.

For the week, Sensex and Nifty gained 0.8% and 0.6% respectively, extending the winning streak to fourth straight week.

GST council fixed rates for remaining stuff over the weekend. GST for Gold, gold jewellery, silver and diamond was fixed at 3%. Footwear will now have two tax slabs - 5% for footwear priced lower than Rs 500 and 18% for higher. Readymade garments below Rs 1000 will be taxed at 5% and at 12% otherwise. Biscuits will attract a uniform rate of 18% across all categories.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points higher start for our market.

9700-9725 is the target area we have been working with ever since 9530 hurdle was taken out on 26th May. Nifty touched a high of 9673 on Friday before closing at 9654.

9700-9725 continues to be immediate upside target to eye above which 10000 is the next major target we have been working with ever since 8970, the monthly top made in September 2016, was crossed earlier this year.

9550 is the immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.