TRAIL STOP-LOSS TO 18200

 

TRAIL STOP-LOSS TO 18200

 

WORLD MARKETS

 

Dow rose 0.6% while S & P 500 and Nadaq climbed 0.7% each as strong earnings numbers lift sentiment.

 

Both Johnson & Johnson and Procter & Gamble beat third-quarter expectations.

 

US 10-year treasury yield rose 5.3 bps to 1.637%. Spot gold rose 0.3% to $1,769.94 per ounce. Dollar index fell 0.3% to 93.67.

 

IMF slashed its 2021 economic growth forecast for Asia to 6.5% from 7.6% earlier.

 

In Europe, FTSE and DAX gained 0.2% and 0.3% respectively while CAC was little changed.

 

Brent crude rose 1.2%, to $85.32 a barrel while WTI futures rose $1.27, or 1.5%, to $83.71 a barrel.

 

AT HOME

 

After rising two third of a percent in the initial trade, Sensex and Nifty plunged to end lower by 0.1% and 0.3% respectively, snapping 7-day winning streak. Sensex settled at 61716, down 50 points while Nifty lost 58 points to finish at 18418. Nifty mid-cap and small-cap indices tumbled 2.2% and 1.7% respectively. BSE Realty and FMCG indices nosedived 4.6% and 3.1% respectively, becoming top gainers among the sectoral indices while IT and Teck indices were the top gainers, up 1.3% and 1.1% respectively.

 

FIIs net sold stocks and stock futures worth Rs 506 cr and 2147 cr respectively but net bought index futures worth Rs 1771 cr. DIIs were net sellers to the tune of Rs 2578 cr.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.6% and 0.9% respectively while Shanghai is off 0.3%. SGX Nifty is suggesting a modestly higher start for our market.

 

In yesterday's report we had said that upon crossover of 18543, 18650 would be the next target for Nifty and had advised trailing the stop-loss in trading longs to 18130.

 

Nifty, after touching a high of 18604, plunged to 18377 before closing at 18418.

 

18604, the top made yesterday, is the immediate hurdle to eye.

 

Immediate support on the hourly chart has moved up to 18200, with the stop-loss of which, trading longs can be held on to.

 

40011, the top made yesterday, is the immediate hurdle for Banknifty, upon crossover of which, 40500 would be the next level to eye; 38900 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.