TRAIL STOP-LOSS TO 15060

 

TRAIL STOP-LOSS TO 15060

 

WORLD MARKETS

 

On Wednesday Dow and S & P 500 rose 1.5% and 0.6% respectively, with the former hitting record closing high as the House passed the $1.9 trillion stimulus package, and the bond market digested a $38 billion auction of 10-year Treasury bonds without a spike in volatility. Nasdaq ended flat.

 

Yesterday, Nasdaq soared 2.5% while S & P 500 and Dow rose 1% and 0.6% respectively as a rebound in tech shares resumed and Biden’s $1.9 trillion Covid-19 relief package became law. S & P 500 hit a new closing high.

 

U.S. President Joe Biden signed the $1.9 trillion coronavirus relief package, which will send direct payments of up to $1,400 to most Americans.

 

Weekly jobless claims totaled 712,000, below the estimate of 725,000. Continuing claims again decreased, falling 193,000 to 4.1 million, another pandemic-era low.

 

Brent crude rose $1.59, or 2.3%, to $69.46 per barrel, while WTI crude settled 2.4%, or $1.58, higher at $66.02 per barrel.

 

European markets gained 0.2%-0.8%. The ECB left its Pandemic Emergency Purchase Program, or PEPP, unchanged, at a total of 1.85 trillion euros ($2.21 trillion) due to last until March 2022. However, it vowed to increase bond purchases significantly next quarter.

 

The yield on the benchmark 10-year US Treasury note rose slightly to 1.525%. Dollar index slipped 0.4% at 91.435. Gold was little changed.

 

AT HOME

 

On Wednesday, benchmark indices rose half a percent, extending the winning streak to third straight day. Sensex settled at 51280, up 254 points while Nifty added 76 points to finish at 15174. Nifty mid-cap and small-cap indices surged 0.8% and 1.4% respectively. BSE Metal and IT indices rose 1.8% and 1.6% respectively, becoming top gainers among the sectoral indices while Oil & Gas and Utilities indices were the top losers, down 0.9% and 0.6% respectively.

 

FIIs net sold stocks and stock futures worth Rs 16 cr and 166 cr respectively but net bought index futures worth Rs 87 cr. DIIs were net buyers to the tune of Rs 448 cr.

 

Rupee appreciated 2 paise to end at 72.90/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.7% while Hang Seng and Shanghai are marginally in the red. SGX Nifty is trading at 15420, suggesting around 200 points higher start when compared to Wednesday's close of Nifty futures.

 

In Wednesday's report, we had said that 15273, the top made last week, continued to be the immediate upside level to eye, upon crossover of which, 15431, the top made on 16th February, would the next target. We had also advised holding on to long positions with the stop-loss of 14862.

 

Nifty rose to close at 15174 and is set to open near 15350 today.

 

15431, the top made on 16th February, is the next upside target to eye.

 

Immediate support on the hourly chart has moved up to 15060, with the stop-loss of which, trading longs can be held on to.