TRAIL STOP-LOSS TO 11500

 

TRAIL STOP-LOSS TO 11500

 

WORLD MARKETS

 

US indices rose 0.6%-0.7% on Friday with the Dow Jones Industrial Average erasing its losses of 2020.

 

U.S. consumer spending rose 1.9% in July, topping forecast of a 1.5% gain. Personal income rose 0.4%, beating the expectation of a drop of 0.2%.

 

Brent crude futures fell 5 cents to $45.04 a barrel while WTI crude settled 7 cents, or 0.2%, lower at $42.97 per barrel.

 

Main European markets fell 0.3%-0.6%.  France’s second-quarter GDP was confirmed at -13.8% and household consumption rose 0.5% in July from the previous month. In Spain, retail sales dropped 3.9% year-on-year in the month of July, a slight improvement from the previous reading.

 

For the week, US indices climbed 2.6%-3.3% with the S & P 500 and Nasdaq notching five-week winning streak.

 

AT HOME

 

Sensex and Nifty climbed 0.9% and 0.8% respectively, extending the winning streak to sixth straight day and closing at fresh six-month high. Sensex settled at 39467, up 353 points while Nifty added 96 points to finish at 11655. BSE mid-cap index rose 0.6% but small-cap index fell 0.2%. BSE Bankex surged 4%, becoming top gainer among the sectoral indices, followed by 2.4% higher Telecom index. Auto and Utilities indices were the top losers, down 0.9% each.

 

FIIs net bought stocks and index futures worth Rs 1004 cr and 351 cr respectively but net sold stock futures worth Rs 807 cr. DIIs were net sellers to the tune of Rs 511 cr.

 

Rupee appreciated 42 paise to end at 73.38/$.

 

For the week, Sensex and Nifty gained 2.7% and 2.5% respectively.

 

Government unveiled unlock 4.0 guideline according to which states cannot impose lockdown outside Containment Zones. Also, metro rail will be allowed to operate with effect from 7th Septemebr in a graded manner.

 

Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Ltd, announced that it is acquiring the entire retail, wholesale, logistics and warehousing businesses from the Future Group on a slump sale basis for a total consideration of Rs 24,713 crore .

 

OUTLOOK

 

China's official manufacturing PMI for the month of August came in at 51 v/s 51.1 in July.

 

Today morning, Asian markets are trading with gains of 0.6%-1.8% and SGX Nifty is suggesting around 70 points higher start for our market.

 

Readers would recall that we had turned our view on Nifty bullish after 11373 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

 

On Friday, we had said that above 11630, 11700 would be the next target. Nifty, after touching a high of 11686, closed at 11647 and is set to open above 11700 today.

 

12012-12071, the gap created by gap-down opening on 24th February, is now the next major target/resistance to eye.

 

Immediate support on the hourly chart has moved up to 11500, with the stop-loss of which, trading longs should be held on to.

 

India's Q1 GDP data will be released today and is expected to show a contraction of 19.6%.