10334 ABOVE 10176; TRAIL STOP-LOSS TO 9800

10334 ABOVE 10176; TRAIL STOP-LOSS  TO 9800

WORLD MARKETS

US indices gained 0.8%-2.1%, with the S & P 500 and Nasdaq rising for the fourth consecutive day while Dow rose for the third straight day. Nasdaq composite is now just 1.58% below its all-time high.

Yesterday's upmove came as Data from ADP showed private payrolls fell by 2.76 million in May — much less than the 8.75 million expected, giving credence to the notion that the worst of the Covid-19 economic slump may well be behind us.

Brent crude futures for August fell 7 cents, or 0.2%, to $39.50 a barrel while WTI crude for July gained 48 cents, or 1.3%, to settle at $37.29 per barrel.

European markets surged 2.6%-3.9%. IHS Markit’s final composite PMI for May came in at 31.9 as against April’s 13.6 reading.

AT HOME

After rising nearly 2%, benchmark indices gave away more than half of the gains in last hour plunge to end higher by 0.8%, extending the winning streak to sixth straight day and closing at the highest level since 11th March. Sensex settled at 34109, up 284 points while Nifty added 82 points to finish at 10061. BSE mid-cap and small-cap indices gained 0.3% and 1.2% respectively.  BSE Realty index and Bankex were the top gainers among the sectoral indices, rising 3.1% and 2.1% respectively while Telecom and Power indices were the top losers, down 1% and 0.8% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1851 cr, 532 cr and 1635 cr respectively. DIIs were net sellers to the tune of Rs 782 cr.

Rupee depreciated 10 paise to end at 75.46/$.

OUTLOOK

Today morning, Nikkei and Hang Seng are up nearly half a percent while Shanghai is little changed. SGX Nifty is suggesting about 30 points higher start for our market.

In yesterday's report we had said that 20-month moving average, placed around 10111, which roughly coincided with the 10159 top made on 13th March (the day on which we had also seen a bottom of 8555), was the next target/resistance to eye.

Nifty hit a high of 10176 to achieve 10159 target mentioned above, but slipped from there to end at 10061.

10176, the top made yesterday, is the immediate hurdle to eye, upon crossover of which, 10334, the upper end of the gap created by gap-down opening on 12th March, would be the next target.

Immediate support on the hourly chart has moved up to 9800, with the stop-loss of which, trading longs can be held on to.