TRAIL STOP-LOSS TO 16500

 

TRAIL STOP-LOSS TO 16500

 

WORLD MARKETS

 

US indices gained 0.1%-0.5% with the S & P 500 and Nasdaq hitting record highs. Nasdaq listed Chinese stocks surged as investors gain more clarity on China’s regulatory outlook and buy shares of names that have taken a beating lately

 

US 10-year treasury yield rose 4 bps to 1.295%. Dollar index eased 0.1% to 92.899. Spot gold was steady at $1,804.99 per ounce.

 

Brent curde settled 3.4% higher at $71.05 per barrel while WTI gained $1.90, or 2.9%, to settle at $67.54 per barrel.

 

In Europe, FTSE and DAX rose 0.2% and 0.3% respectively while CAC fell 0.3%. German GDP grew by 1.6% in the second quarter, slightly outpacing previous estimate of 1.5% growth.

 

AT HOME

 

Benchmark indices climbed three fourth of a percent, extending yesterday's upmove and recouping three fourth of the recent losses. Sensex settled at 55959, up 403 points while Nifty added 128 points to finish at 16624. Nifty mid-cap and small-cap indices surged 1.4% and 2% respectively, with the later snapping 6-day losing streak. BSE Metal and Basic Material indices gained 2.8% and 2.2% respectively, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, down 0.4% each.

 

FIIs net sold stocks worth Rs 1645 cr but net bought index futures and stock futures worth Rs 1103 cr and 2400 cr respectively. DIIs were net buyers to the tune of Rs 2380 cr.

 

Rupee appreciated 2 paise to end at 74.19/$.

 

Bajaj Finserve surged after the company got SEBI nod to set up mutual fund.

 

OUTLOOK

 

Today morning, Nikkei is up 0.3% while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that upon crossover of 16600, 16701 would be the next upside target and had advised holding on to long positions with the stop-loss of 16376.

 

Nifty crossed 16600 hurdle and surged all the way to 16647 before closing at 16625. The benchmark is set to open above 16650 today.

 

16701, the top made last week, is the next upside level to eye, upon crossover of which, 16800 would be the next target.

 

Immediate support on the hourly chart has moved up to 16500, with the stop-loss of which, trading longs can be held on to.

 

36300 is the upside level for Banknifty; 35400 is immediate support.