TRAIL STOP-LOSS TO 16380

 

TRAIL STOP-LOSS TO 16380

 

WORLD MARKETS

 

Dow and S & P 500 rose 0.3% each to hit record highs while Nasdaq fell 0.2%.

 

US 10-year Treasury yield fell 3.5 basis points to 1.262%. Spot gold rose 0.5% to $1,787.76 per ounce.

 

Data from China showed July retail sales, industrial production and fixed asset investment all missed forecasts.

 

Brent crude settled down $1.08, or 1.5%, at $69.51 a barrel and U.S. oil fell by $1.15, or 1.7%, to $67.29.

 

European markets fell 0.3%-0.9%.

 

AT HOME

 

Sensex and Nifty added nearly a fourth of a percent to hit fresh record highs. Sensex settled at 55582, up 145 points while Nifty finished at 16563, up 34 points. Nifty mid-cap and small-cap indices however fell 0.3% and 0.8% respectively, extending the underperformance.  BSE Metal and Energy indices climbed 1.8% and 1.1% respectively, becoming top gainers among the sectoral indices while Telecom and Auto indices were the top losers, down 1% and 0.8% respectively.

 

FIIs net sold stocks and index futures worth Rs 1088 cr and 332 cr respectively but net bought stock futures worth Rs 264 cr. DIIs were net buyers to the tune of Rs 506 cr.

 

India's July WPI inflation came in at 11.16%, down from 12.07% in June.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are trading with modest gains while Hang Seng is marginally in the red. SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that upon crossover of 16550, 16650-16700 would be the next target zone and had advised trailing stop-loss in long positions to 16325.

 

Nifty touched a high of 16589 before closing at 16563.

 

16650-16700 continues to be next target zone.

 

Immediate support on hourly chart has moved up to 16380, with the stop-loss of which, trading longs can be held on to.

 

36300 continues to be immediate hurdle for Banknifty above which 36500 and 37200 would be next upside levels to eye; 35531, the low made last week, is the important immediate support.