STAY LONG WITH THE STOP-LOSS OF 16540

 

STAY LONG WITH THE STOP-LOSS OF 16540

 

WORLD MARKETS

 

US indices fell 0.5%-0.6%, weighed down by developments in Afghanista and looking for more details from Jackson Hole symposium regarding the central bank’s plans to taper monetary stimulus. The Dow snapped a four-day win streak while the S&P 500 and the Nasdaq Composite both broke five-day win streaks.

 

The Pentagon confirmed 12 U.S. service members were killed and 15 wounded after two explosions went off outside the Kabul airport Thursday.

 

US weekly jobless claims came in 353,000, roughly in line with the 350,000 claims expected. The prior week saw 348,000 claims. Second-quarter GDP growth came in a 6.6%, just a tick below the consensus estimate of 6.7%.

 

US 10-year treasury yield were little changed at 1.346%. Dollar index rose 0.24% to 93.05. Spot gold rose 0.1% to $1,792.01 per ounce.

 

Brent crude fell 50 cents, or 0.7%, to $71.75 per barrel while WTI was down 65 cents, or 1%, at $67.71 a barrel, both snapping 3-day winning streak.

 

European markets eased 0.2%-0.8%. Germany's GfK’s consumer sentiment index for September fell to -1.2 points from a revised -0.4 points in August, and fell short of a -0.7 forecast. France's composite business confidence index came in at 110 versus 113 in July.

 

AT HOME

 

Consolidation continued as benchmark indices ended flat after a rangebound buy choppy session. Sensex settled 5 points higher at 55949 while Nifty finished at 16637, up 2 points. Nifty mid-cap and small-cap indices gained 0.2% each.

 

BSE Telecom index tumbled 3.4%, becoming top loser among the sectoral indices, followed by 1.4% lower Metal index. Energy and Power indices were the top gainers, up 1.1% and 0.9% respectively.

 

FIIs net sold stocks and index futures worth Rs 1974 cr and 208 cr respectively but net bought stock futures worth Rs 1998 cr. DIIs were net buyers to the tune of Rs 1055 cr.

 

Rupee appreciated 3 paise to end at 74.21/$.

 

Bharti Airtel plunged after the company said its board will meet on August 29 to consider fund raising.

 

OUTLOOK

 

Today morning, Nikkei is down half a percent while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 16800 was the next upside level to eye and had advised trailing stop-loss in long positions to 16540.

 

Nifty, after touching a high of 16686, slipped to end at 16636.

 

16800 continues to be next upside level to eye.

 

16540 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

36300 is the upside hurdle for Banknifty; 35400-35350 continues to be immediate support zone.

 

10 stocks will debut in F&O segment from today. These are Canfin Homes, Dixon, IEX, HAL, Indiamart, Ipca, MCX, OFSS, Polycab and Syngene.