TRAIL STOP-LOSS TO 9550

TRAIL STOP-LOSS TO 9550

WORLD MARKETS                             

US indices fell 0.1% each due to soft performance from financials and concerns over inflation after the Fed's Beige Book was released.

Beige Book revealed "some districts noted falling prices for certain final goods, including groceries, apparel and autos." Following the release of the Beige Book, the 10-year Treasury yield at one point dipped below 2.2% mark. Dollar index fell about 0.4% to 96.98.

In a tweet, Trump indicated that he might pull out of the Paris climate agreement.

WTI crude fell 2.7% to $48.32/bbl. Brent plunged 3% to $50.31.

European markets, except a marginally higher DAX, fell 0.1%-0.4%

AT HOME

Benchmark indices ended marginally in the red after trading in a narrow range through the session. Sensex lost 14 points to settle at 31146 while Nifty finished at 9621, down 3 points. BSE mid-cap and small-cap indices however climbed 0.9% and 1% respectively. BSE Metal index tumbled 1.4%, becoming top loser among the sectoral indices, followed by 0.8% cut in IT index.

FIIs net bought stocks and index futures worth Rs 1049 cr and 1129 cr respectively but net sold stock futures worth Rs 1072 cr. DIIs were net sellers to the tune of Rs 940 cr.

Rupee appreciated 15 paise to end at 64.50/$.

GDP growth slowed down to 6.1% in January-March quarter from 7% in the previous quarter. For the full year, growth stood at 7.1%, down from 7.9% in 2015-16.

Core sector growth slowed to 2.5% in April from 5.3% in March.

Petrol and diesel prices were hiked by Rs 1.23/litre and 89 paise/litre respectively.

OUTLOOK

China's May Caixin manufacturing PMI has come in at 49.6, down from 50.3 in April and marking an 11-month low.

Today morning, except a modestly lower Shanghai, other Asian markets are trading with gains of 0.2%-1% with Nikkei on the top and SGX Nifty is suggesting a flattish start for our market.

At the risk of repeating, we have been working with target area of 9700-9725 after 9530 hurdle was taken out.

Nifty yesterday touched a fresh record high of 9650 before closing at 9621, moving towards this target.

9700-9725 continues to be immediate target area. Immediate support on the hourly chart has moved up to 9550, with the stop-loss of which, trading longs should be held on to.