TRAIL STOP-LOSS TO 15900

 

TRAIL STOP-LOSS TO 15900

 

WORLD MARKETS

 

US indices climbed 1.1%-2.3%, with S & P 500 and Nasdaq rising for the fourth straight session.

 

Initial jobless claims and continuing claims both ticked up slightly last week. The U.S. trade deficit for May came in slightly higher than expected at $85.5 billion but was still down month over month.

 

US 10-year treasury yield rose 9 bps to 3.004% and the 2-year Treasury yield climbed nearly seven bps to 3.028%. Dollar index was flat at 107. Spot gold rose 0.1% to $1,740.16 per ounce.

 

Brent crude futures settled 3.9% higher at $104.65 per barrel and WTI crude futures surged 4.3% to at $102.73, rebounding from steep losses the previous two sessions.

 

European markets rose 1.1%-3% as U.K. Prime Minister Boris Johnson resigned. Minutes of the latest ECB meeting showed that policymakers discussed a larger interest rate hike for July than the 25 basis points it eventually earmarked. German industrial production expanding by 0.2% month-on-month in May, as against a forecast of 0.3%, and was down 1.5% year-on-year.

 

AT HOME

 

Sensex and Nifty gained 0.8% and 0.9% respectively, extending yesterday's upmove. Sensex settled at 54178, up 427 points while Nifty added 143 points to finish at 16132. Nifty mid-cap and small-cap indices surged 1.4% and 1.6% respectively. All the BSE sectoral indices ended in green, with Metal and Consumer Durables indices leading the tally, up 4.5% and 3.2% respectively.

 

FIIs net sold stocks worth Rs 925 cr but net bought index futures and stock futures worth Rs 1263 cr and 133 cr respectively. DIIs were net buyers to the tune of Rs 981 cr.

 

Rupee appreciated 12 paise to end at 79.18/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.4% and 0.6% respectively while Shanghai is marginally in the green. SGX Nifty is suggesting around 100 points higher start for our market.

 

In yesterday's report we had said that 16172, the upper end of the gap created by gap-down opening on 13th June, was the next target and had advised trailing the stop-loss in longs to 15785, which was the low made Tuesday.

 

Nifty surged to touch a high of 16150 before closing at 16132. The benchmark is set to open above 16200 today.

 

16350 is the next upside level to eye; Immediate support on the hourly chart has moved up to 15900, with the stop-loss of which, trading longs can be held on to.

 

35270, the 78.6% retracement level of the recent 36083-32290 fall, is the next upside level for Banknifty, above which, 34-week moving average, placed around 36000, would be the next target; 34100 is the immediate support.