STAY LONG WITH THE STOP-LOSS OF 10675

STAY LONG WITH THE STOP-LOSS OF 10675

WORLD MARKETS

Dow rose 0.4% while S & P 500 and Nasdaq fell 0.1% and 0.7% respectively with the Nasdaq snapping a four-day winning streak. Dow was boosted by gains in McDonald's, which rose more than 4%.

Oil rose on worries about a drop in Venezuelan exports with WTI up 1.9% to $65.95 and Brent up 2.7% to $77.36.

Commerce Secretary Wilbur Ross said that the U.S. struck a deal with China's ZTE to end American sanctions against the company.

The 10-year U.S. Treasury note yield declined to 2.92% from around 2.97% seen on the day before.

Emerging markets, led by Brazil, sold-off. Brazillian real plunged against the dollar and the iShares MSCI Brazil ETF (EWZ) nosedived 5.1% on capital flows concerns.

European markets, except a 0.4% higher Spain, ended with modest cuts. German industrial orders dropped 2.5% in the month of April after falling 1.1% in the previous month, marking fourth consecutive negative reading. Eurozone grew 0.4% in the first quarter of the year — the lowest level since the third quarter of 2016.

AT HOME

Benchmark indices gained eight tenth of a percent, extending the winning streak to second straight day and closing at the highest level since 15th May. Sensex added 284 points to settle at 35463 while Nifty finished at 10768, up 83 points. BSE mid-cap and small-cap indices climbed 1.4% and 2% respectively. Except 0.2% lower Consumer Durable index, all the BSE sectoral indices ended in green with Realty index leading the tally, up 2.8%, followed by 1.6% higher Basic Material index.

FIIS net sold stocks worth Rs 525 cr but net bought index futures and stock futures worth Rs 101 cr and 694 cr respectively. DIIs were net buyers to the tune of Rs 1198 cr.

Rupee depreciated 20 paise to end at 67.12/$.

OUTLOOK

Today morning, Nikkei is marginally in the green while Hang Seng and Shanghai are down about 0.3% each. SGX Nifty is suggesting about 10726 about 46 points lower start for our market.

In yesterday's report we had said that 10770, the top made last week, was the immediate upside target as well as resistance above which, 10875, where a trendline adjoining tops made in January and May is placed, would be the next hurdle to eye.

Nifty crossed 10770 hurdle and surged all the way to 10818, but closed off-the day high at 10765. 10875 continues to be upside target as well as hurdle to eye. Immediate support on the hourly chart is placed around 10675, with the stop-loss of which, trading longs should be held on to.