TRAIL STOP-LOSS TO 16540

 

TRAIL STOP-LOSS TO 16540

 

WORLD MARKETS

 

US indices gained 0.1%-0.2%, with the S & P 500 and Nasdaq hitting fresh record highs, ahead of the beginning of the Fed’s annual Jackson Hole symposium on Thursday.

 

US 10-year treasury yield added 5 bps to reach 1.342%. Dollar index was little changed at 92.85. Spot gold slipped 0.8% to $1,788.90 per ounce.

 

Oil extended gains for a third session after U.S. government data showed that fuel demand climbed to its highest since the start of the COVID-19 pandemic. Brent crude settled $1.20, or 1.7%, higher at $72.25 per barrel while WTI crude advanced 82 cents, or 1.2%, to $68.36 per barrel.

 

In Europe, except 0.3% lower DAX, other markets gained 0.1%-0.3%. Germany's Ifo business climate index for August came in at 99.4, below a forecast of 100.4 and down from a revised 100.7 in July. U.K. retailers reported the sharpest increase in spending for almost seven years in August but inventories fell to the lowest levels on record, exerting pressure on prices.

 

AT HOME

 

It was a day of consolidation as after rising half a percent in the morning and hitting record highs, benchmark indices gave away all the gains in noon to end little changed. Sensex lost 15 points to settle at 55944 while Nifty finished at 16634, up 10 points. Nifty mid-cap and small-cap indices gained 0.3% and 0.8% respectively, extending yesterday's outperformance. BSE Oil & Gas and Power indices climbed 1.3% each, becoming top gainers among the sectoral indices while Consumer Durables and Telecom indices were the top losers, down 1.1% and 0.8% respectively.

 

FIIs net sold stocks worth Rs 1072 cr but net bought index futures and stock futures worth Rs 78 cr and 818 cr respectively. DIIs were net sellers to the tune of Rs 181 cr.

 

Rupee depreciated 5 paise to end at 74.24/$.

 

OUTLOOK

 

Today morning, Asian markets are little changed and SGX Nifty is also suggesting a flattish start for our market.

 

In yesterday's report we had said that 16701, the top made last week, was the next upside level to eye, upon crossover of which, 16800 would be the next target. We had also advised trailing stop-loss in long positions to 16500.

 

Nifty, after touching a high of 16712, eased to end at 16634.

 

16800 is the next upside level to eye.

 

Immediate support on the hourly chart has moved up to 16540, with the stop-loss of which, trading longs can be held on to.

 

36300 is the upside level for Banknifty; 35400-35350 is the immediate support zone.