TRAIL SL TO 17370

 

TRAIL SL TO 17370

 

WORLD MARKETS

 

US indices gained 0.7%-0.8%, with the Nasdaq snapping a 5-day losing streak  and S & P 500 posting its biggest gain in the month so far.

 

Economic data was mixed. U.S. manufacturing output slowed in August, rising 0.2% from a 1.6% increase the previous month. Import prices fell unexpectedly in August and a New York Fed’s business survey showed a higher-than-expected reading.

 

US 10-year treasury yield ticked up 2.2 basis points to 1.301%. Dollar index eased 0.1% to 92.546. Spot gold fell 0.6% to $1,793.81 per ounce.

 

Brent oil jumped $1.86, or 2.5%, to $75.46 per barrel, while WTI crude climbed $2.15, or 3.05%, to settle at $72.61 per barrel after industry data showed a larger-than-expected drawdown in U.S. crude inventories.

 

Main European markets fell 0.25%-1%. U.K. inflation soared to a nine-year high in August, with consumer prices rising 3.2% y-o-y after a 2% annual rise in July.  Euro zone industrial production for July rose 1.5% month-on-month and 7.7% annually against expectations of 0.6% and 6.3% increases.

 

China’s retail sales for August grew 2.5%, much lower than the 7% expectation.

 

AT HOME

 

Benchmark indices climbed 0.8% each to hit fresh record highs. Sensex added 476 points to settle at 58723 while Nifty finished at 17519, up 139 points. Nifty mid-cap and small-cap indices surged 1% and 0.6% respectively and also hit fresh record highs. All the BSE sectoral indices ended in green, with Telecom and Utilities indices on the top, up 3.4% and 2.3% respectively.

 

FIIs net bought stocks and index futures worth Rs 233 cr and 171 cr respectively but net sold stock futures worth Rs 255 cr. DIIs were net sellers to the tune of Rs 168 cr.

 

Rupee appreciated 19 paise to end at 73.49/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 0.25% and 1% respectively while Shanghai is up 0.2%. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 17430-17440 was the congestion zone, upon decisive crossover of this, 17600-17650 would be the next target zone and  had advised holding on to trading longs can be held on to with the stop-loss of 17200. 

 

Nifty crossed 17440 hurdle and surged all the way to 17532 before closing at 17519.

 

17600-17650 is the next target zone to eye.

 

Immediate support on the hourly chart has moved up to 17370, with the stop-loss of which, trading longs can be held on to.

 

37140, 37700 are the upside levels for Banknifty; 36500 is immediate support.