NIFTY MOVES CLOSER TO 10550 TARGET; TRAIL STOP-LOSS TO 10175

NIFTY MOVES CLOSER TO 10550 TARGET; TRAIL STOP-LOSS TO 10175

WORLD MARKETS

US indices gained 0.4%-0.7%, with Nasdaq extending rising streak to eighth consecutive day and hitting fresh record high

Apple rose 2.1% on to reach a new all-time high, after it unveiled new operating systems for its iPhone and computers.

Meanwhile, White House health advisor Dr. Anthony Fauci said  parts of the U.S. are beginning to see a “disturbing surge” of Covid-19 cases. He however struck a more upbeat tone on a vaccine potential and said he expects one by early 2021.

Brent crude fell 45 cents, or 1%, to settle at $42.63 per barrel while WTI settled 36 cents, or 0.89%, lower at $40.37 per barrel.

European markets climbed 1.2%-2.1%. IHS Markit’s flash composite PMI for the euro zone increased to 47.5 in June from 31.9 in May and a record low 13.6 in April.

AT HOME

Benchmark indices soared a percent and half, extending the winning streak to fourth straight day and closing at the highest level since 11th March and 6th March respectively, marking three and a half month high. Sensesx settled at 35430, up 519 points while Nifty added 160 points to finish at 10471. BSE mid-cap and small-cap indices gained 1.7% and 1.8% respectively. Except 1% lower Energy index, all the BSE sectoral indices ended in green with Power and Capital Goods indices leading the tally, up 4.2% and 4.1% respectively.

FIIs net bought stocks and stock futures worth Rs 169 cr and 116 cr respectively but net sold index futures worth Rs 115 cr. DIIS were net buyers to the tune of Rs 454 cr.

Rupee appreciated 37 paise to end at 75.64/$.

Department of Revenue yesterday notified anti-dumping duty on flat rolled zinc/aluminium coated steel imports from Korea, Vietnam and China for a period of 5 years.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting around 15 points lower start for our market.

At the risk of repeating, we had turned our view on Nifty bullish after 10070 hurdle was taken out and have been advising holding on to long positions with the trailing stop-loss.

After 10328 target was achieved, we have been working with next target of 10550, the 61.8% retracement level of the entire 12430-7511 fall.

Nifty yesterday surged to 10484 before closing at 10471 and is set to open near 10450 today.

10550, the 61.8% retracement level of the entire 12430-7511 fall, continues to be next upside target. Upon decisive crossover of 10550, 10770, where 34-week moving average is placed, would be the next major target/resistance to eye.

Immediate support on the hourly chart has moved up to 10175, with the stop-loss of which, trading longs can be held on to.