TRAIL STOP-LOSS TO 11056

TRAIL STOP-LOSS TO 11056

WORLD MARKETS

Nasdaq plunged 2.3% while Dow and S & P 500 fell 1.3% and 1.2% respectively, as a sell-off in tech stocks and worse-than-expected jobless claims hit sentiment. S & P 500 snapped a four-day winning streak.

Microsoft shares slipped 4.3% despite reporting better-than-expected quarterly earnings. Tesla gave back its earlier gains and fell 5% despite reporting earnings that blew past analyst expectations. Apple fell 4.5%, while Amazon and Netflix dropped 3.6% and 2.5% respectively.

U.S. weekly jobless claims came in at 1.416 million for last week, higher than the expected 1.3 million figure and marking the 18th consecutive week that more than 1 million new unemployment claims have been filed.

Brent futures fell $1.01, or 2.3%, to $43.28 a barrel, while WTI crude settled 2%, or 83 cents, lower at $41.07 per barrel.

European markets ended little changed. Germany's GfK consumer confidence reading rose to -0.3 for August compared to -9.4 in July.

AT HOME

Bulls were back after yesterday's pause as benchmark indices climbed seven tenth of a percent to close at the highest level since 5th March, marking a fresh four and a half month high. Sensex gained 268 points to settle at 38140 while Nifty finished at 11215, up 82 points. BSE mid-cap and small-cap indices gained 1% and 0.6% respectively. BSE Energy index soared 2.4%, becoming top gainer among the sectoral indices, followed by 1.6% higher Healthcare and Realty indices. IT and Teck indices were the top losers, down 0.6% each.

FIIs net bought stocks and index futures worth Rs 1740 cr and 220 cr respectively but net sold stock futures worth Rs 1281 cr. DIIs were net buyers to the tune of RS 186 cr.

Rupee ended unchanged at 74.76/$.

OUTLOOK

Nikkei continues to be shut while Hang Seng and Shanghai are down 1.2% and 0.7% respectively. SGX Nifty is suggesting about 40 points lower start for our market.

Just to reiterate, we had turned our view on Nifty bullish after 11894 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

In yesterday's report we had said that 11238, the top made Wednesday, also coincided with the upper end of the gap, created by gap-down opening on 6th March and hence was the immediate hurdle to eye. 

Nifty yesterday soared to touch a high of 11239 before closing at 11215 and is set to open below 11200 today.

11244, the upper end of the gap created by gap-down opening on 6th March, continues to be immediate hurdle. Above 11244, 11390, the top made on 5th March, would be the next target/hurdle.

11056, the bottom made on Wednesday, is the immediate support to watch out now, with the stop-loss of which, trading longs should be held on to.

ITC, Asian Paints, JSW Steel and ZEEL will report their quarterly earnings today.