TRAIL STOP-LOSS TO 16990

 

TRAIL STOP-LOSS TO 16990

 

WORLD MARKETS

 

US indices gained 0.1%-0.4% on the back of better-than-expected jobless claims data and gearing up for the August jobs report.

 

First-time jobless claims totaled 340,000 for the week ended Aug. 28, its lowest since March 2020 and compared with the 345,000 estimate.

 

August non-farm payroll report is expected to show an addition of 720,000 jobs, down from 943,000 jobs added in July. The unemployment rate is expected to dip to 5.2%, compared to 5.4% in July.

 

US 10-year treasury yield moved 1 basis point lower to 1.29%. The dollar index fell 0.303% to 92.229. Spot gold eased 0.2% to $1,809.60 per ounce.

 

Brent crude rose $1.44, or 2%, to $73.03 a barrel while WTI crude settled up $1.40, or 2%, to $69.99 a barrel.

 

European markets rose 0.1%-0.2%.

 

AT HOME

 

Bulls were back to work after one day rest as benchmark indices soared 0.9% each to hit fresh record highs. Sensex settled at 57852, up 514 points while Nifty added 158 points to finish at 17234. Nifty mid-cap and small-cap indices climbed 1% each with the former hitting record high. Except 0.2% and 0.1% lower Auto and Oil & Gas indices, all the BSE sectoral indices ended higher with FMCG index leading the tally, up 1.6%, followed by 1.5% higher IT and Consumer Durables indices.

 

FIIs net bought stocks, index futures and stock futures worth Rs 349 cr, 1228 cr and 462 cr respectively. DIIs were net buyers to the tune of Rs 382 cr.

 

Rupee appreciated 3 paise to end at 73.05/$.

 

India's August exports rose 45.2% y-o-y to $33.14 bn while imports surged 51.5% to $47.01 bn, leaving a trade deficit of $13.87 bn as against deficit of $10.97 in July.

 

OUTLOOK

 

Today morning, Nikkei is up 0.4% while Hang Seng and Shanghai are down 0.8% and 0.2% respectively. SGX Nifty is suggesting a modestly higher start for our market.

 

In yesterday's report we had said that 17300-17350 continued to be next target zone for Nifty and had advised trailing the stop-loss in long positions to 16810.

 

Nifty surged to 17245 before closing at 17234.

 

17350-17400 is the next target zone to eye.

 

Immediate support on the hourly chart has moved up to 16990, 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.