TRAIL STOP-LOSS TO 11423

TRAIL STOP-LOSS TO 11423

 

WORLD MARKETS

 

US indices gained 0.3%-1.7% with Nasdaq leading the tally after some of the nation’s largest technology and consumer communications companies rallied.

 

Salesforce soared 26% after reporting blowout earnings. Netflix and Facebook climbed 11.6% and 8.2% respectively, while Apple added 1.4%, Amazon advanced 2.8% and Microsoft climbed 2.1%.

 

Biotech firm Moderna announced that its potential coronavirus vaccine generated a promising immune response in elderly patients during an early stage clinical trial.

 

Brent crude fell 22 cents to $45.64 a barrel, while WTI settled 4 cents higher at $43.39 per barrel.

 

European markets gained 0.1%-1%.

 

AT HOME

 

Benchmark indices gained six tenth of a percent, extending the winning streak to fourth straight day and closing at six-month high. Sensex added 230 points to settle at 39073 while Nifty finished at 11549, up 77 points. BSE mid-cap and small-cap indices rose 0.4% and 0.7% respectively. BSE Energy index climbed 2.1%, becoming top gainer among the sectoral indices, followed by 1.5% higher Auto index and Bankex. Telecom index tumbled 2%, becoming top loser, followed by 0.2% lower Basic Material index.

 

FIIs net bought stocks and index futures worth Rs 1581 cr and 360 cr respectively but net sold stock futures worth Rs 778 cr. DIIs were net sellers to the tune of Rs 1195 cr.

 

Rupee appreciated 3 paise to end at 74.29/$.

 

Tata Motors surged, extending the rising streak to second straight day, after the company said it proposed to reduce its debt to near-zero levels.

 

Hero Motocorp climbed after finance minister Nirmala Sitharaman endorsed the need for a cut in goods and services (GST) tax on two-wheelers.

 

OUTLOOK

 

Today morning, Shaghai is little changed while Nikkei and Hang Seng are down 0.4% and 0.8% respectively. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 11536, the upper end of the gap created by gap-down opening on 28th February, continued to be immediate resistance, above which, 11630 would be the next target. We had also said that 11362, the low made Friday, continued to be immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty rose to cross the 11536 and touched a high of 11561 before closing at 11549.

 

11630 continues to be next upside target.

 

11423, the low made Wednesday, would now act as immediate support, with the stop-loss of which, trading longs should be held on to.

 

Century Textiles, Equitas and Ujjivan will be excluded from F & O segment after August derivative expiry.

 

41st GST Council meeting will be held today. Key agenda is to make up for shortall in states' revenue.  

 

Markets will watch out for Fed Chair Powell's speech at the Federal Reserve’s annual virtual symposium on monetary policy today, for clues on further stimulus, inflation and its impact on the dollar.