STAY LONG WITH THE STOP-LOSS OF 15460

 

STAY LONG WITH THE STOP-LOSS OF 15460

 

WORLD MARKETS

 

US indices gained 0.5%-1.5% on Friday as the key May jobs report showed solid gains, but not enough to compel the Federal Reserve to dial back its bond buying program.

 

The U.S. economy added 559,000 jobs in May, slightly lower than an estimate of 671,000 but higher than the upwardly revised 278,000 payrolls added in April. The unemployment rate fell to 5.8% from 6.1%, which was better than the estimate of 5.9%. Factory orders for April declined 0.6%, weighed down by weakness in the transportation sector.

 

The yield on the benchmark 10-year Treasury note fell nearly seven basis points to 1.56%. The dollar index fell 0.38% to 90.135. Spot gold jumped 1% to $1,889.27 per ounce.

 

Brent crude rose 0.8% to $71.89 and hit the highest level since May 2019 while WTI crude gained 1.18% to settle at $69.62 per barrel, its highest since October 2018.

 

European markets gained 0.1%-0.5%.

 

For the week, US indices gained 0.5%-0.7% while European markets rose 0.5%-1.1%. In Asia, Nifty rose 1.5% while Nikkei and Hang Seng fell 0.7% each and Shanghai was off 0.25%. Brent and WTI gained 3.2% and 5% respectively, extending the winning streak to second straight week.

 

Over the weekend, finance ministers from the Group of Seven backed a U.S. proposal that calls for firms globally to pay at least 15% tax on earnings.

 

AT HOME

 

After rising nearly a fourth of a percent in the initial trade, Sensex and Nifty slipped to end lower by 0.25% and 0.1% respectively. Sensex settled at 52100, down 132 points while Nifty lost 20 points to finish at 15670. Nifty mid-cap and small-cap indices however gained 0.7% and 0.4% respectively. BSE Industrials and Oil & Gas indices rose 1.3% and 1.2% respectively, becoming top gainers among the sectoral indices while Bankex and Consumer Durables indices were the top losers, down 1% and 0.8% respectively.

 

FIIs net bought stocks worth Rs 1499 cr but net sold index futures and stock futures worth Rs 614 cr and 616 cr respectively. DIIs were net sellers to the tune of Rs 1175 cr.

 

Rupee depreciated 9 paise to end at 72.99/$.

 

For the week, Sensex and Nifty gained 1.3% and 1.5% respectively, extending the winning streak to third straight week and notching record weekly close.

 

May GST collection stood at Rs. 1.02 lk cr, down from the record Rs. 1.41 lk cr in April, but marking the eighth straight month of above Rs. 1 lk cr mop-up.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are trading with modest gains while Hang Seng is down a percent. SGX Nifty is suggesting around 30 points higher start for our market.

 

Readers would recall that we had turned our view on Nifty bullish after 14825 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

 

On Friday, we had said that 15850 continued to be next upside target to eye and had advised trailing the stop-loss in long positions to 15460.

 

Nifty, after touching a high of 15733, eased to end at 15670.

 

15850 continues to be next upside target to eye.

 

15460 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.