NIFTY BREAKS OUT OF 6-DAY CONSOLIDATION; TRAIL STOP-LOSS TO 11000

NIFTY BREAKS OUT OF 6-DAY CONSOLIDATION; TRAIL STOP-LOSS TO 11000

WORLD MARKETS

Dow ended marginally in the red while S & P 500 and Nasdaq gained 0.2% and 0.3% respectively with the technology sector hitting an all-time high.

Bank shares rose sharply on the back of higher interest rates as the benchmark 10-year Treasury yield traded at 2.95% after the yield on the 10-year Japanese note climbed to its highest level since February

Google-parent Alphabet reported better-than expected earnings after the bell.

At a G-20 meeting in Argentina over the weekend, finance leaders from the world’s biggest economies called for more dialogue to help prevent geopolitical and trade tensions from negatively impacting global economic growth. The meeting however, failed to reach a significant agreement on trade.

European markets fell 0.1%-0.9% with Italy losing the most.

AT HOME

After trading in a narrow range, Sensex and Nifty saw a steep upmove in late noon trade to end with gains of 0.6% and 0.7% respectively, with Sensex hitting a record intraday and closing high while Nifty closed at the highest level since 29th January. Sensex gained 22 points to settle at 36719 while Nifty finished at 11085, up 75 points. BSE mid-cap and small-cap indices soared 1.3% and 0.9% respectively. Except a 0.4% lower Energy index, all the BSE sectoral indices ended in green with Telecom and FMCG indices leading the tally, up 2.5% and 2.3% respectively.

FIIs net bought stocks worth Rs 259 cr but net sold index futures and stock futures worth Rs 604 cr and 18 cr respectively. DIIs were net buyers to the tune of Rs 125 cr.

Rupee depreciated 1 paise to end at 68.85/$.

UPL soared after the company, on Friday after market hours, announced acquisition of Arysta LifeScience Inc. for approximately $4.2 billion.

Hero MotoCorp and Bajaj Auto plunged amid worries that Bajaj Auto Ltd.’s push to gain a bigger slice of the low-cost market will increase competition and hurt industry margins.

OUTLOOK

Today morning, Hang Seng and Nikkei are up 0.4% each while Shanghai is up 0.6%. SGX Nifty is suggesting a flattish start for our market.

While Nifty was in a consolidation mode after hitting a high of 11078 on 12th July, we had maintained the positive bias and had asked holding on to long positions with the stop-loss of 10890.

Nifty yesterday soared 75 points to settle at 11085, resolving this 6-day consolidation on the upside.

11171, the top made in January, is the next target above which 11230 would be the subsequent target.

Immediate support on the hourly chart has moved up to 11000, with the stop-loss of which, trading longs should be held on to.