STAY LONG WITH THE STOP-LOSS OF 17200

 

STAY LONG WITH THE STOP-LOSS OF 17200

 

WORLD MARKETS

 

Dow and S&P 500 gained 0.8% and 0.2% respectively to snap 5-day losing streak while Nasdaq eased 0.1% for its fourth straight negative session. Energy stocks jumped on the back of rising oil prices and led the gainers. Stocks linked to the economic reopening also gained after the seven-day daily U.S. Covid case average declined to around 144,300, down from roughly 167,600 cases per day at the beginning of the month.

 

US 10-year treasury yield fell by 1.5 basis points to 1.326%. The dollar index, after rising to two-week high of 92.887, eased to end flat at 92.664. Spot gold rose 0.4% to $1,795.20 per ounce.

 

Brent crude rose 0.8% to settle at $73.51 per barrel and WTI crude gained 1.05% to finish at $70.45.

 

European markets gained 0.2%-1.4%.

 

AT HOME

 

Sensex and Nifty fell 0.1% and 0.2% respectively, extending last couple of days' consolidation. Sensex lost 127 points to settle at 58177 while Nifty finished at 17355, down 14 points. Nifty mid-cap and small-cap indices extended the outperformance, rising 0.4% and 0.5% respectively. BSE Metal and Utilities climbed 1.5% and 1.2% respectively, becoming top gainers among the sectoral indices while Energy index and Bankex were the top losers, down 1.5% and 0.5% respectively.

 

FIIs net bought stocks worth Rs 1419 cr but net sold index futures and stock futures worth Rs 647 cr and 1160 cr respectively. DIIs were net sellers to the tune of Rs 560 cr.

 

Rupee depreciated 17 paise to end at 73.67/$.

 

India's August CPI slowed to 4-month low of 5.30% from 5.59% in July. Core CPI eased to 5.8% from 6%.

 

OUTLOOK

 

Today morning, Nikkei is up 0.8% while Shanghai and Hang Seng are off nearly half a percent each. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report, we had said that, 17436, the top made last week, continued to be immediate hurdle, upon crossover of which, 17600-17650 would be the next target zone. We had also said that 17250-17200 continues to be the support zone and trading longs could be held on to with the stop-loss of 17200.

 

Nifty, after touching a low of 17269, rebounded to end at 17355 and is set to open near 17400 today.

 

17436, the top made last week, continues to be immediate hurdle, upon crossover of which, 17600-17650 would be the next target zone.