TRAIL STOP-LOSS TO 17430

 

TRAIL STOP-LOSS TO 17430

 

WORLD MARKETS

 

After falling about 0.8% each, Dow and S & P 500 rebounded to end lower by 0.2% each while Nasdaq inched up 0.1%.

 

August retail sales unexpectedly increased 0.7% for the month against the estimate of a decline of 0.8%. Weekly jobless claims increased to 332,000 for the week ended Sept. 11, the estimated figure being 320,000.

 

US 10-year treasury yield rose 3.2 basis points to 1.336%. Dollar index surged 0.5% to 92.866, hitting its highest level since Aug. 27. Spot gold slid 2.1% to $1,755.75 per ounce.

 

Brent crude rose 21 cents, or 0.3%, to $75.67 a barrel while WTI was unchanged at $72.61.

 

In Europe, FTSE and DAX inched up 0.2% each while CAC climbed 0.6%.

 

AT HOME

 

Bull rampage continued as Sensex and Nifty climbed 0.7% and 0.6% respectively, extending the winning streak to third straight day and hitting fresh record highs. Sensex added 418 points to settle at 59149 while Nifty finished at 17629, up 110 points. Nifty mid-cap and small-cap indices gained 0.4% and 0.2% respectively. BSE Bankex and Energy indices climbed 2.1% and 1.7% respectively, becoming top gainers among the sectoral indices while IT and Basic Materials indices slipped 0.7% each, becoming the top losers, followed by 0.6% lower Metal and Teck indices.

 

FIIs net bought stocks and index futures worth Rs 1622 cr and 235 cr respectively but net sold stock futures worth Rs 1878 cr. DIIs were net sellers to the tune of Rs 795 cr.

 

Rupee depreciated 3 paise to end at 73.52/$.

 

Finance Minister Nirmala Sitharaman announced that the government will back guarantees worth Rs 30,600 crore for the National Asset Reconstruction Company, which will take over bad loans worth Rs 2 lakh crore from banks.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.1%-0.6% and SGX Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that 17600-17650 was the next target zone to eye and had advised trailing the stop-loss in long positions to 17370.

 

Nifty soared to 17644 before closing at 17629, achieving the target mentioned above and vindicating our view. The benchmark is set to open near 17700 today.

 

17900, where an upward sloping trendline adjoining recent tops on the daily chart is placed, is the next target to eye.

 

Immediate support on the hourly chart has moved up to 17430, with the stop-loss of which, trading longs can be held on to.

 

38100-38200 is the next target zone for Banknifty; 37100 is immediate support, with the stop-loss of which, trading longs can be held on to.