NIFTY NEARLY ACHIEVES 16300 TARGET

 

NIFTY NEARLY ACHIEVES 16300 TARGET

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.9% and 0.5% respectively while Nasdaq inched up 0.1% after digesting mixed economic data and awaiting Friday's non-farm payroll number.

 

Data from ADP showed a gain of 330,000 private jobs for July, well short of the consensus estimate of 653,000. However, the July Services PMI came in at an all-time high of 64.1.

 

US 10-year treasury yield inched up 1 bps to 1.184%.  Dollar index inched up 0.2% to 92.246. Gold, after gaining 1% earlier in the session, eased to end just 0.1% higher at $1811.38 per ounce.

 

Brent crude fell $2.03 or 2.8% to $70.38 per barrel, while WTI crude settled $2.41, or 3.4% lower at $68.15 per barrel, extending the losing streak for the third day in a row and hitting a two-week low. Data from EIA showed weekly crude inventory rose 3.6 million barrels as against the expectation of a 3.1-million barrel draw.

 

China's Caixin/Markit services PMI for July came in at 54.9, up from June’s reading of 50.3.

 

European markets gained 0.3%-0.9%. Eurozone final composite PMI for July rose to 60.2 from June’s 59.5 and marking its fastest expansion in 15 years. However, U.K. composite PMI dropped sharply to 59.2 from June’s 62.2

 

AT HOME

 

Sensex and Nifty climbed 1% and 0.8% respectively, extending yesterday's mammoth upomove and hitting fresh record highs. Sensex settled at 54369, up 546 points while Nifty added 128 points to finish at 16258. Nifty mid-cap and small-cap indices however extended the underperformance, losing 1.2% and 1% respectively. BSE Bankex and Finance indices soared 2.6% and 2.1% respectively, becoming top gainers among the sectoral indices while Telecom and Realty indices were the top losers, down 2.2% and 1.7% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2819 cr, 213 cr and 281 cr respectively. DIIs were net sellers to the tune of Rs 411 cr.

 

Rupee appreciated 10 paise to end at 74.18/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.3% each while Shanghai is off 0.1%. SGX Nifty is suggesting around 20 points higher start for our market.

 

Readers would recall that we had given targets of 16300 and 16400 after 15900-15962 resistance zone was taken out.

 

Yesterday, Nifty surged to touch a high of 16290 before closing at 16258, nearly achieving 16300 target and vindicating our view.

 

16400 is the next upside target to eye.

 

15950 is the immedite support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

36500, 37200 are next upside targets for Banknifty; 35000 is immediate support.