NIFTY TAKES OUT 11650 HURDLE; STAY LONG WITH STOP-LOSS OF 11570

NIFTY TAKES OUT 11650 HURDLE; STAY LONG WITH STOP-LOSS OF 11570

WORLD MARKETS

US indices fell 0.1%-0.4%, with the Dow and S & P 500 snapping their four and five-day winning streak respectively, after Trump cast doubt on the trade progress between China and the U.S.

Trump said the two countries have a “long way to go” on trade, adding the U.S. can slap tariffs on an additional $325 billion worth of Chinese goods “if we want.”

US Retail sales advanced 0.4% last month, higher than expectations of a 0.1% increase.

Goldman Sachs and JP Morgan Chase rose after reporting better-than-expected results. Johnson & Jhohnson fell 1.6% despite reporting a 42% profit surge.

Brent futures fell $2.56 or 3.7% to $63.86 a barrel and WTI futures fell $2.46 or 4.2% to $57.09 after US State Secretary Pompeo said Iran is ready to negotiate about its missile program.

In Europe, FTSE and CAC gained 0.6% each while DAX was up 0.4%. Sterling slipped to around $1.24 as fears of a no-deal Brexit rose following comments from potential Conservative Party leader, Boris Johnson.The euro zone’s balance of trade for May came in at a surplus of 23 billion euros ($25.85 billion). Seasonally adjusted exports rose by 1.4% while imports were down 1%. July’s economic sentiment figures for Germany came in at -24.5 versus -22.3 expectations.

AT HOME

Sensex and Nifty gained six tenth of a percent to close at the highest level since the budget day. Sensex added 234 points to settle at 39131 while Nifty finished at 11661, up 72 points. BSE mid-cap and small-cap indices gained 0.7% and 0.3% respectively. Except 0.4% and 0.3% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Realty and Oil & Gas indices leading the tally, up 2% and 1.7% respectively.

FIIs net sold stocks and index futures worth Rs 445 cr and 53 cr respectively but net bought stock futures worth Rs 439 cr. DIIs were net buyers to the tune of Rs 638 cr.

Rupee depreciated 17 paise to end at 68.71/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4-0.8% and SGX Nifty is suggesting about 25 points lower start for our market.

For past couple of days we have been mentioning that 11650-11461 is the immediate range, a crossover of which, on either side, is required for a fresh move.

Nifty yesterday touched a high of 11670 before closing at 11662, crossing 11650 hurdle decisively.

11721, the 50% retracement level of the recent 11981-11461 fall, is the next upside target to eye above which, 11780 and 11810, which are the 61.8% and 67% retracement levels of this fall, would be next important targets/hurdles to eye.

11570 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

Wipro, Mindtree and Yes Bank will report their quarterly earnings today.