TRAIL STOP-LOSS TO 15500

 

TRAIL STOP-LOSS TO 15500

 

WORLD MARKETS

 

US indices fell 0.2%-0.7%, snapping a 2-day winning streak.

 

Pending home sales posted a surprise 0.7% increase in May as against expectations of a 4% drop.

 

US 10-year treasury yield rose 7 bps to 3.204%. Dollar index fell 0.2% to 103.94. Spot gold fell 0.2% to $1822  per ounce.

 

Brent crude futures rose 1.7% to $115.09 per barrel and U.S. WTI crude settled 1.8%, higher at $109.57 per barrel.

 

In Europe, FTSE and DAX rose 0.7% and 0.5% respectively while CAC fell 0.4%.

 

AT HOME

 

Benchmark indices rose eight tenth of a percent each, extending the winning streak to third straight day and closing at two-week high. Sensex settled at 53161, up 433 points while Nifty added 132 points to finish at 15832. Nifty mid-cap and small-cap indices surged 1% and 2% respectively. All the BSE sectoral indices ended higher, with Capital Goods and IT indices leading the tally, up 2.3% and 2% respectively.

 

FIIs net sold stocks worth Rs 1278 cr but net bought index futures and stock futures worth Rs 205 cr and 525 cr respectively. DIIs were net buyers to the tune of Rs 1184 cr.

 

Rupee appreciated 1 paise to end at 78.34/$.

 

OUTLOOK

 

Today morning, Nikkei is flat while Hang Seng and Shanghai are off 0.8% and 0.3% respectively. SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 15886, the lower end of the gap created by gap-down opening on 13th June, was the immediate upside level to eye, above which, 16172, the upper end of this gap, would be the next target. We had also advised holding on to long positions with the stop-loss of 15367.

 

Nifty, after touching a high of 15927, slipped to end at 15832.

 

16000, around with 20 as well 34-DMAs are placed, is the immediate hurdle, above which, 16172, the upper end of the gap created by big gap-down opening on 13th June, would be the next target;  Immediate support on the hourly chart has moved up to 15500, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 34150, the top made yesterday, coincided with 34-DMA and is the immediate hurdle, above which, 34346, the upper end of the gap created by gap-down opening on 13th June, would be the next upside level to eye; 32900 is the immediate support on hourly chart.