TRAIL STOP-LOSS TO 15360

 

TRAIL STOP-LOSS TO 15360

 

WORLD MARKETS

 

US markets were shut yesterday for Memorial Day.

 

Brent as well as WTI crude rose 0.9% each to $69.32 and $66.91 a barrel respectively.

 

In Europe, FTSE was shut while DAX and CAC fell 0.6% each. Spanish consumer prices rose 2.4% in May year-on-year, the highest in four years. In Germany, inflation rose 2.5%.

 

The OECD’s latest Economic Outlook, released yesterday, sees a 5.8% growth in global GDP in 2021, compared to a 3.5% contraction in 2020.  It forecasts a 6.3% growth for the G20 group of developed economies, and 4.3% for the Euro area.

 

China's official manufacturing PMI for May came in 51.0 — slightly lower than the expected reading of 51.1.

 

Spot gold was steady at $1,903.25 per ounce.

 

AT HOME

 

Benchmark indices climbed a percent, with Nifty extending the winning streak to seventh straight day and hitting a fresh record high. Sensex closed at the highest level since 16th February. Sensex added 515 points to settle at 51937 while Nifty finished at 15582, up 147 points. Nifty mid-cap and small-cap indices underperformed yet again, gaining just 0.3% and 0.1% respectively. Except 0.2% and 0.1% lower IT and Auto indices respectively, all the BSE sectoral indices ended in green, with Energy and Metal indices leading the tally, up 2.5% and 2.2% respectively.

 

FIIs net bought stocks worth Rs 2412 cr but net sold index futures and stock futures worth Rs 690 cr and 201 cr respectively. DIIs were net buyers to the tune of Rs 180 cr.

 

Rupee depreciated 17 paise to end at 72.61/$.

 

India's Q4 GDP expanded 1.6% y-o-y while GVA growth stood at 3.7% y-o-y. FY21 GDP contracted 7.3% while GVA contracted 6.2%.

 

OUTLOOK

 

Today morning, Hang Seng is up 0.2% while Nikkei and Shanghai are off 0.4% and 0.1% respectively. SGX Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that 15670 was the next upside target and had advised trailing stop-loss in long positions to 15280.

 

Nifty surged to touch a high of 15606 before closing at 15582 and is set to open near 15650 today.

 

15670, followed by 15815, are the upside levels to eye.

 

Immediate support on the hourly chart has moved up to 15360, with the stop-loss of which, trading longs can be held on to.

 

ITC will report its quarterly earnings today and Auto companies will report their May sales data.