11390 ABOVE 11341; TRAIL STOP-LOSS TO 11137

 

11390 ABOVE 11341; TRAIL STOP-LOSS TO 11137

 

WORLD MARKETS

 

Dow surged 1.3%, posting its seventh positive session in a row, while S & P 500 rose 0.3% on hopes for an agreement on more coronavirus-related economic stimulus. Nasdaq however fell 0.4% as profit booking in tech stocks extended.

 

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin on Sunday signaled a willingness to restart negotiations on a new coronavirus relief bill.

 

Data earlier showed China’s factory deflation eased in July.

 

Brent crude rose 82 cents, or 1.9%, to $45.22 a barrel while WTI crude settled 72 cents, or 1.7%, higher at $41.94 per barrel.

 

Main European markets gained 0.1%-0.4%, 

 

Meanwhile, China imposed sanctions on 11 U.S. citizens that included Senators Ted Cruz, Marco Rubio, Tom Cotton, Josh Hawley and Pat Toomey.

 

AT HOME

 

After rising nearly a percent in the morning, benchmark indices gave away half of the gains in noon to end higher by around half a percent. Sensex settled at 38182, up 141 points while Nifty added 60 points to finish at 11274. Nifty mid-cap and small-cap indices surged 1.4% and 1.7% respectively to close at their highest level since 3^rd March, marking a 5-month high. Except 1% and 0.1% lower Energy and Oil & Gas indices respectively, all the BSE sectoral indices ended in green with Healthcare and Capital Goods indices leading the tally, up 4.7% and 3.3% respectively.

 

FIIs net bought stocks and index futures worth Rs 303 cr and 24 cr respectively but net sold stock futures worth Rs 641 cr. DIIs were net sellers to the tune of Rs 505 cr.

 

Rupee appreciated 4 paise to end at 74.89/$.

 

Titan reported in-line with expected revenue but worse than expected operating and net loss. BoB reported Rs 860 cr loss as provisions remained elevated. Shree Cement's revenue was in-line but margin was a miss. Powergrid was a top-down miss.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.7%-2% and SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had reiterated the view that 11341, the top made on 29th July, continued to be important immediate target/resistance to eye while 11064, the bottom made on Wednesday, continued to be immediate support, with the stop-loss of which, trading longs should be held on to.

 

Nifty, after touching a high of 11337, slipped to end at 11270 but is set to open above 11300 today.

 

11341, the top made on 29th July, continues to be immediate hurdle, upon crossover of which 11390, the top made on 5th March, would be the next target.

 

Immediate support on the hourly chart has moved up to 11137, with the stop-loss of which, trading longs should be held on to.