TRAIL STOP-LOSS TO 16460

 

TRAIL STOP-LOSS TO 16460

 

WORLD MARKETS

 

US indices fell 0.4%-1.9%, with Nasdaq leading the losses, as markets digested disappointing economic data and results from Snap that sent social media shares reeling.

 

A preliminary reading on the U.S. Composite PMI fell to 47.5, down from 52.3 in June and marking the lowest level in more than two years.

 

US 10-year treasury yield slipped 13 bps to 2.752%. Dollar index was flattish at 106.54. Spot gold rose 0.3% to $1,723 per ounce.

 

Brent crude futures settled 0.64% lower at $103.20 per barrel, while WTI crude futures declined 1.71% to $94.70.

 

European markets ended marginally higher. Eurozone flash composite PMI for July came in at 49.4, below the 50 mark that separates growth in activity from contraction. In the U.K., the composite reading came in at 52.8, slightly below a forecast of 53.0 and down from 53.7 in June.

 

AT HOME

 

Benchmark indices rose seven tenth of a percent, extending the winning streak to sixth straight day and closing at the highest level after 02nd May, 2022. Sensex settled at 56072, up 390 points while Nifty added 114 points to finish at 16719. Nifty mid-cap index ended flat while small-cap index rose 0.4%. BSE Bankex and Finance indices were the top gainers among the sectoral indices, up 1.5% and 1.4% respectively whereas Power index was the top loser, down 0.9%, followed by 0.8% lower Teck and Utilities indices.

 

FIIs net sold stocks worth Rs 675 cr but net bought index futures and stock futures worth Rs 1182 cr and 1110 cr respectively. DIIs were net buyers to the tune of Rs 739 cr.

 

Rupee appreciated 10 paise to end at 79.85/$.

 

For the week, Sensex and Nifty gained 4.3% and 4.2% respectively, notching their best weekly gain after the week ended 5th February 2021.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-0.9% and SGX Nifty is suggesting around 70 points lower start for our market.

 

In Friday's report we had said that 16794, the top made in June was the next upside level to eye while immediate support on the hourly chart had moved up to 16340, with the stop-loss of which, trading longs could be held on to.

 

Nifty touched a high of 16752 before closing at 16719.

 

16794, the top made in June, continues to be immediate upside target, upon crossover of which, 200-DMA, placed around 17050, is the next upside level to eye. Immediate support on the hourly chart has moved up to 16460, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 37000, the 50% retracement level of the entire 41830-32155 fall, is the next target, upon crossover of which, 37700, around which a trendline adjoining tops made February and April is placed, would be the next upside level to eye. 35900 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.