TRAIL STOP-LOSS TO 16810

 

TRAIL STOP-LOSS TO 16810

 

WORLD MARKETS

 

Dow fell 0.1%, S & P 500 was little changed while Nasdaq gained 0.3%.

 

Data from ADP showed private payrolls for August rose just 374,000, well below the estimate of 600,000 though above July’s 326,000. Other data showed U.S. manufacturing activity increased more than anticipated in August, but a measure of employment in factories fell to a nine-month low.

 

US 10-year treasury yield was little changed at 1.304%. The dollar index fell 0.203% and hit a new one-month low of 92.376. Spot gold was down 0.1% at $1,812.55 per ounce.

 

Brent crude fell 4 cents to settle at $71.59 a barrel while WTI crude rose 9 cents to $68.59 a barrel. OPEC and its allies agreed to stick to a policy from July of phasing out record output cuts by adding 400,000 barrels per day to the market.

 

European markets, except 0.1%, lower Dax, gained 0.4%-1.2%. German retail sales fell 5.1% month-on-month in July Vs forecast for a 0.9% fall and 4.5% gain in June. The final August manufacturing PMI for the euro zone came in at 61.4, slightly below an initial flash estimate of 61.5. U.K. August manufacturing PMI fell to 60.3 from July’s 60.4.

 

AT HOME

 

After rising half a percent at the open and hitting fresh record highs, benchmark indices tumbled to end lower by four tenth of a percent, with the Nifty snapping 7-day winning streak. Nifty mid-cap and small-cap indices however gained 0.8% and 0.3% respectively. BSE Realty index soared 5.5%, becoming top gainer among the sectoral indices, followed by 1.7% higher Power index. Metal and IT indices were the top losers, down 1.8% and 1.4% respectively.

 

FIIs net bought stocks worth Rs 667 cr but net sold index futures and stock futures worth Rs 873 cr and 133 cr respectively. DIIs were net sellers to the tune of Rs 1288 cr.

 

Rupee depreciated 8 paise to end at 73.08/$.

 

India's August Manufacturing PMI slowed to 52.3 from 55.3 in July.

 

GST collections in the month of August stood at Rs 1.12 lk cr Vs Rs. 1.16 lk cr in July.

 

Escorts August sales fell 21.7% y-o-y to 5693 units. Bajaj Auto total sales rose 5% to 3.73 lk units. Eicher Motors CV sales surged 93.5% to 4793 units. Ashok Leyland sold 9360 units, a jump of 48%. M & M tractor sales fell 21.6% to 21360 units. Maruti sales were up 4.8% at 1.30 lk units. Tata Motors sales surged 58.9% to 57995 units.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.1%-1% with Hang Seng on the top and SGX Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 17300-17350 was the next target zone to eye and had advised trailing stop-loss in long positions to 16780.

 

Nifty, after touching a high of 17225, reversed to end at 17076.

 

17300-17350 continues to be next target zone for Nifty.

 

Immediate support on the hourly chart has moved up to 16810, with the stop-loss of which, trading longs can be held on to.

 

Above 37000, 37230 and 37700 would be the upside levels to eye for Banknifty; 35950 is immediate support.