TRAIL STOP-LOSS TO 16780

 

TRAIL STOP-LOSS TO 16780

 

WORLD MARKETS

 

US indices ended marginally in the red.

 

The June S&P/Case-Shiller Home Price index showed another record high for home prices. The August Conference Board consumer confidence survey showed a larger-than-expected decline.

 

US 10-year treasury yield rose more than 2 bps to 1.309%. The dollar index fell 0.1%. Spot gold inched up 0.2% to $1,814.42 per ounce.

 

Brent crude fell 42 cents, or 0.6%, to $72.99 while WTI eased 53 cents, or 0.8% to $68.68 a barrel.

 

Official manufacturing PMI showed slowing Chinese factory activity growth in August, coming in at 50.1 against July’s reading of 50.4.

 

European markets fell 0.1%-0.4%. Eurozone consumer prices increased by 3% y-o-y in August, far above expectations and the ECB’s 2% target.

 

For the month, S&P 500 rose 2.9%, up for the seventh month in a row. The Nasdaq Composite gained about 4% and while the Dow added 1.2%.

 

AT HOME

 

Benchmark indices soared 1.2% each to hit fresh record highs and wrap up the month with solid gains. Sensex settled at 57552, up 662 points while Nifty added 201 points to finish at 17132. Nifty mid-cap and small-cap indices gained 0.3% and 0.4% respectively. All the BSE sectoral indices ended higher with Telecom index leading the tally, up 4.9%, followed by 1.6% higher Teck index.

 

FIIs net bought stocks and stock futures worth Rs 3881 cr and 2589 cr respectively but net sold index futures worth Rs 330 cr. DIIs were net sellers to the tune of Rs 1872 cr.

 

Rupee appreciated 26 paise to end at 73/$.

 

For the month, Nifty soared 8.7% for its biggest rise in 9 months.

 

Q1 FY22 GDP growth stood at 20.1%, which was better-than-expectation.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 0.9% and 0.1% respectively while Hang Seng is off 0.3%. SGX Nifty is suggesting a flattish start for our market.

 

Readers would recall that we had turned our view bullish after 15950 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

 

In yesterday's report we had said that 17000-17050 was the next target zone to eye.

 

Nifty soared to 17153 before closing at 17132.

 

17300-17350 is the next target zone to eye.

 

Immediate support on the hourly chart has moved up to 16780, with the stop-loss of which, trading longs can be held on to.

 

36900, 37250 are the upside levels to eye for Banknifty; 35800 is immediate support.

 

August auto sales data will be out today.