STAY LONG WITH THE STOP-LOSS OF 16150

 

STAY LONG WITH THE STOP-LOSS OF 16150

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.5% and 0.1% respectively to hit record highs after the Senate passed the $1 trillion infrastructure bill. Nasdaq however fell half a percent, as treasury yields advanced, weighing on growth-oriented areas of the market.

 

The Senate passed the infrastructure bill, which earmarks $550 billion in new spending for areas including transportation and the electric grid.

 

US 10-year treasury yield ticked up 3.2 bps to 1.349%. The dollar index inched up 0.1%. Spot gold rose 0.1% to $1,730.93 per ounce.

 

Brent crude gained $1.59, or 2.3%, to settle at $70.63 per barrel and U.S. oil settled $1.81, or 2.7%, higher at $68.29 per barrel.

 

European markets gained 0.1%-0.4%. Germany’s ZEW survey of economic sentiment index for August tumbled to 40.4 from 63.3 in July, missing expected reading of 56.7 by a wide margin.

 

AT HOME

 

After rising more than half a percent in the morning, Sensex and Nifty slipped in noon to end higher by 0.3% and 0.1% respectively. Sensex settled at 54554, up 151 points while Nifty added 22 points to finish at 16280. Nifty mid-cap and small-cap indices ended with steep cuts of 1.1% and 2.3% to close at the lowest level since 28 and 13 July respectively. BSE Telecom index climbed 2.1%, becoming top gainer among the sectoral indices, followd by 0.9% higher Teck index. Metal and Basic Materials indices were the top loesr, down 2.7% and 2.2% respectively.

 

FIIs net sold stocks and index futures worth Rs 179 cr and 288 cr respectively but net bought stock futures worth Rs 470 cr. DIIs were net buyers to the tune of Rs 689 cr.

 

Rupee depreciated 16 paise to end at 74.42/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.1%-0.5% and SGX Nifty is suggesting around 20 points higher start for our market.

 

In yesterday's report we had said that 16349, the top made last week, continued to be immediate hurdle while 16176-16146, the gap created by Wednesday’s gap-up opening, continued to be immediate support zone.

 

Nifty, after touching a high of 16359, slipped to end at 16280.

 

16500 is the next upside target to eye.

 

16176-16146, the gap created by Wednesday’s gap-up opening, continues to be immediate support zone and trading longs can be held on to with the stop-loss of 16146.

 

36500, 37200 continue to be  upside targets for Banknifty; 35600, the low made Monday, is the immediate support.