TRAIL STOP-LOSS TO 10620

TRAIL STOP-LOSS TO 10620

WORLD MARKETS

US indices tumbled 0.9%-1.5%, with the S & P 500 and Nasdaq snapping five-day winning streak, on concerns over the threat to economic recovery of new coronavirus cases.

Texas reported more than 10,000 additional Covid-19 cases yesterday — a record-breaking daily surge. The Greater Miami area on Monday reversed some of its reopening efforts. In Australia, Victoria state imposed stay-at-home restrictions in areas such as metropolitan Melbourne for six weeks.

A World Health Organization official said yesterday that it shouldn’t “be a surprise” if coronavirus deaths start to rise again.

Brent crude futures fell 24 cents, or 0.6%, to $42.86 while WTI futures fell 1 cent to settle at $40.62 per barrel. 

Main European markets fell 0.7%-1.5%. German industrial production rose 7.8% in May, lower than the expected rise of 10%. European Commission now expects the 27-member region to contract by 8.3% this year, worse than the contraction of 7.4% projected earlier.

AT HOME

After falling about two third of a percent in the morning, Sensex and Nifty indices climbed a percent from the bottom of the day to end higher by 0.5% and 0.3% respectively. Sensex rose 187 points to settle at 36674 while Nifty finished at 10799, up 36 points. Both the indices ended at fresh four-month high and extended the rising streak to fifth straight day. BSE mid-cap and small-cap indices gained 0.6% each. BSE IT index and Bankex climbed 2.1% and 1.9% respectively, becoming top gainers among the sectoral indices while Oil & Gas and Utilities indices slipped 2.4% and 2.3% respectively, becoming top losers.

FIIs net bought stocks worth Rs 830 cr but net sold index futures and stock futures worth Rs 409 cr and 638 cr respectively. DIIs were net sellers to the tune of Rs 785 cr.

Rupee depreciated 26 paise to end at 74.93/$.

Bajaj Finance surged after the company, in its quarterly update to the exchanges, said that its AUM under moratorium has reduced from 27% as of April 30, 2020, to 15.5% as of June 30, 2020. New loans booked during the quarter plunged 76.3% to 1.7 million as compared to 7.3 million in the same period last year. The company said it may consider additional accelerated provisioning for COVID-19 in Q1FY21 as well to further strengthen its balance sheet.

OUTLOOK

Today morning, Asian markets are trading with gains of upto 0.6% and SGX Nifty is suggesting a marginally higher start for our market.

In yesterday's report we had said that 10890, where 200 Day Simple Moving Average is placed, was the next upside target/resistance to eye and had advised raising the stop-loss in trading longs to 10510.

Nifty, after touching a low of 10689, rebounded to end at 10799.

10890, where 200 Day Simple Moving Average is placed, continues to be next upside target/resistance to eye.

Immediate support on the hourly chart has moved up to 10620, with the stop-loss of which, existing longs can be held on to.