TRAIL STOP-LOSS TO 10890

TRAIL STOP-LOSS TO 10890

WORLD MARKETS

Nasdaq surged 1.4% while Dow and S & P 500 gained 0.9% each on the back fo lack of escalation in trade tensions between the U.S. and China. Nasdaq hit a record high helped by all-time highs in Facebook and Amazon. Microsoft and Alphabet also hit intraday records.

Chinese commerce ministry said that China had not been in touch with the U.S. about restarting trade talks. U.S. Treasury Secretary Steven Mnuchin said that bilateral talks on trade could resume on the condition that China was open to making "serious efforts" to change.

The consumer price index rose at its fastest pace in six years and weekly jobless claims fell to 214,000 last week.

European markets gained 0.4%-0.8%.

AT HOME

Senesex and Nifty gained 0.7% and 0.8% respectively with Sensex closing at record high while Nifty closed at the highest level since 31st January. Sensex added 282 points to settle at 36548 while Nifty finished at 11023, up 75 points. BSE mid-cap and small-cap indices however fell 0.5% and 0.1% respectively. BSE Energy index soared 3.1%, becoming top gainer among the sectoral indices, followed by 1.6% higher Oil & Gas index. Realty and Auto indices were the top losers, down 1.1% and 0.8% respectively.

FIIs net sold stocks worth Rs 743 cr but net bought index futures and stock futures worth Rs 582 cr and 1165 cr respectively. DIIs were net buyers to the tune of Rs 366 cr.

Rupee appreciated 20 paise to end at 68.57/$.

India's retail inflation grew 5% in June, a five-month high, from May's 4.87%. Industrial production grew 3.2% in May as compared with 4.9% rise in April.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 1.3% and 0.7% respectively while Shanghai is down 0.2%. SGX Nifty is suggesting about 15 points higher start for our market.

Just to repeat, after Nifty achieved 10930 target, we have been working with next major target of 11171, the top made in January. Nifty yesterday touched a high of 11078 before closing at 11023 and is set to open higher today.

11171 continues to be upside target to eye. Immediate support on the hourly chart has moved up to 10890, with the stop-loss of which, existing longs can be held on to.

Infosys will report its quarterly earnings today.