TRAIL STOP-LOSS TO 16722

 

TRAIL STOP-LOSS TO 16722

 

WORLD MARKETS

 

S & P 500 and Nasdaq gained 0.4% and 0.9% respectively to hit fresh record highs while Dow eased 0.2%.

 

Pending home sales declined for a second straight month in July and a report on manufacturing activity in August from the Dallas Federal Reserve showed a slowing from the prior month.

 

US 10-year treasury yield eased 3 bps to 1.282%. Dollar index was little changed at 92.69. Spot gold fell 0.4% to $1,808.67 per ounce.

 

Brent crude rose 54 cents a barrel, or 0.7% to 73.23 while U.S. crude rose 34 cents, or 0.5% to $69.08 a barrel.

 

European markets gained 0.1%-0.3%. Euro zone economic sentiment eased more than expected in August from a record high in July.

 

AT HOME

 

It was a rocking start to the new week as benchmark indices soared 1.4% each to hit fresh record highs. Sensex settled at 56890, up 765 points while Nifty added 225 points to finish at 16931. Nifty mid-cap and small-cap indices climbed 1.9% and 1.5% respectively. Except 0.5% and 0.04% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green, with Telecom and Metal indices leading the tally, up 3.5% and 2.6% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1203 cr, 558 cr and 1446 cr respectively. DIIs were net buyers to the tune of Rs 689 cr.

 

Rupee appreciated 42 paise to end at 73.26/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are marginally in the red while Hang Seng is off 0.7%. SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that 16850 was the next upside target, above which, 17000 would be the next upside level to eye.

 

Nifty surged to touch a high of 16951 before closing at 16931.

 

17000-17050 is the next target zone to eye,

 

16764-16722, the gap created by yesterday's gap-up opening, would now act as immediate support zone.

 

Trading longs can be held on to with the stop-loss of 16722.

 

36500, 37200 are upside levels to eye for Banknifty; 35700 is immediate support.