11700 ABOVE 11630; TRAIL STOP-LOSS TO 11440

 

11700 ABOVE 11630; TRAIL STOP-LOSS TO 11440

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.6% and 0.2% respectively, with the S & P 500 reaching a new all-time high for a fifth day in a row, while Nasdaq eased 0.3% as Apple and Amazon fell.

 

Fed Chair Powell announced a major policy shift by the U.S. central bank to “average inflation targeting.” That means the Fed will allow inflation to run “moderately” above the central bank’s 2% goal “for some time” after periods when it has run below that objective. The Fed also adjusted its view of full employment to allow gains in the labor market to run more broadly. That means the central bank will be less inclined to raise interest rates when the unemployment rate falls, as long as inflation does not creep up as well.

 

Brent crude futures fell 57 cents, or 1.3%, to $45.10 a barrel while WTI crude futures settled 35 cents, or 0.8%, lower at $43.04 per barrel.

 

Main European markets fell 0.6%-0.8%.

 

AT HOME

 

After rising more than half a percent in the morning, benchmark indices gave away most of the gains in noon trade to end just marginally higher. Sensex settled at 39113, up 39 points while Nifty added 9 points to finish at 11559. BSE mid-cap index ended flat while small-cap index rose 0.4%. BSE Realty index soared 6.6%, becoming top gainer among the sectoral indices, followed by 1% higher Auto index. Energy and Oil & Gas indices were the top losers, down 1% and 0.8% respectively.

 

FIIs net bought stocks and index futures worth Rs 1164 cr and 600 cr respectively but net sold stock futures worth Rs 72 cr. DIIs were net sellers to the tune of Rs 809 cr.

 

Rupee appreciated 48 paise to end at 73.81/$.

 

Realty stock surged after Maharashtra government slashed stamp duty to 2% from 5% for the September-December period in a bid to revive the industry.

 

For the August derivative series, Nifty gained 4.1%.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-0.4%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 11630 continued to be next upside target and had advised trailing the stop-loss in long positions to 11423.

 

Nifty, after touching a high of 11617, slipped to end at 11559 but is set to open near 11600 today.

 

11630 continues to be upside target/resistance to eye, upon crossover of which, 11700 would be next target.

 

Immediate support on the hourly chart has moved up to 11440, with the stop-loss of which, trading longs should be held on to.