NIFTY RETREATS AFTER NEARLY ACHIEVING 11400 TARGET; TRAIL STOP-LOSS TO 11250

NIFTY RETREATS AFTER NEARLY ACHIEVING 11400 TARGET; TRAIL STOP-LOSS TO 11250

WORLD MARKETS

Dow and S & P 500 fell 0.3% and 0.1% respectively on renewed trade concerns while Nasdaq rose 0.5% as Apple soared.

Media report suggested that the Trump administration is looking at the possibility of slapping a 25% tariff on $200 billion worth of imported Chinese goods — after initially setting them at 10%.

US Fed left interest rate unchanged as expected but upgraded its view on the economy, calling it "strong." Treasury yields rose ahead of the Fed announcement, with the 10-year note yield breaking above 3% for the first time since June.

Apple surged more than 5% to hit record high after earnings and revenue for the previous quarter topped analyst expectations.

ADP and Moody's Analytics said the private payrolls in the U.S. grew by 219,000 in July, more than the 185,000 gain forecast.

U.S. crude futures fell 1.6% to $67.66 a barrel and Brent lost 2.5% to $72.39 a barrel following a surprise increase in U.S. crude inventory.

European markets fell 0.2%-1.9% with Italy leading the losses. Eurozone IHS Markit manufacturing PMI came in at 55.1, after hitting 54.9 in June.

AT HOME

Benchmark indices end modestly lower after a choppy trade, breaking 4-day winning streak. Sensex lost 85 points to settle at 37522 while Nifty finished at 11346, down 10 points. BSE mid-cap and small-cap indices gained 0.2% and 0.3% respectively. BSE Auto and Metal indices fell 0.8% and 0.6% respectively, becoming top losers among the sectoral indices while Healthcare and Oil & Gas indices were the top gainers, up 1.1% and 1% respectively.

FIIs net sold stocks worth Rs 96 cr but net bought index futures and stock futures worth Rs 1208 cr and 42 cr respectively. DIIs were net sellers to the tune of Rs 562 cr.

Rupee appreciated 11  paise to end at 68.43/$.

Monetary Policy Committee hiked repo rate by 25 bps to 6.50% while maintaining 'Neutral' stance. FY19 GDP growth forecast was maintained at 7.4%. Q2FY19 CPI forecast was pegged at 4.2% while that of H2FY19 period was raised to 4.8% from 4.7% earlier. For Q1FY20, CPI estimate stood at 5%.

Hero MotoCorp sold 6.79 lakh units in July, a growth of 9.1%. Eicher Motor Roal Enfield sales were up 7% at 69063 units. Maruti July sales fell 0.6% to 1.64 lakh units. Bajaj Auto sales surged 30% to 4 lakh units. Ashok Leyland total sales were up 27% at 15199 units. M & M total auto sales were up 13% at 47199 units while tractor sales rose 20% to 22679 units. 

OUTLOOK

Today morning, Hang Seng and Shanghai are down 0.8% each while Nikkei is down 0.2%. SGX Nifty is suggesting a flattish start for our market.

At the risk of repeating, we had been working with target of 11400 after 11230 target was achieved. Nifty yesterday touched a high of 11390, nearly achieving this target, from where it slipped to end at 11346.

11390, the top made yesterday, is now the immediate hurdle to eye above which 11470 would be the next target.

Immediate support on the hourly chart has moved up to 11250, with the stop-loss of which, trading longs should be held on to.

ONGC and Marico will report their quarterly earnings today.