17377-17414 IS THE NEXT TARGET ZONE; TRAIL STOP-LOSS TO 16750

 

17377-17414 IS THE NEXT TARGET ZONE; TRAIL STOP-LOSS TO 16750

 

WORLD MARKETS

 

US indices rose 1%-1.9% on Friday, extending the winning streak to third consecutive day, after digesting strong tech earnings and looking past concerns about high inflation and a recessionary environment.

 

June’s personal consumption expenditures index climbed 6.8% y-o-y, hitting its highest level since January 1982. Final reading of the University of Michigan Consumer Sentiment Index came in at 51.5 for July, a slight improvement over the preliminary reading and up from the June all-time low of 50.

 

Amazon surged 10.4% after the e-commerce giant reported stronger-than-expected sales, while Apple climbed 3.2% after posting better-than-expected iPhone revenue. Chevron and Exxon Mobil climbed 8.9% and 4.6%, respectively, following better-than-anticipated results.

 

The yield on the benchmark 10-year Treasury note traded 2 basis points lower at 2.658%. Dollar index fell 0.4% to 105.82. Spot gold rose 0.4% to $1,761.59 per ounce.

 

Brent October future rose $2.30 to $104.13 and WTI crude futures advanced 3.4% to $99.67 as attention turned to next week’s OPEC+ meeting and expectations that it will dash U.S. hopes for a supply boost.

 

European markets gained 1.1%-2.2%. Second quarter Eurozone GDP growth came in at 0.7%, exceeding expectations for growth of 0.2%.

 

For the week, US indices gained 3%-4.7%. European markets rose 1.7%-3.7%. In Asia, Nifty and Nikkei rose 2.6% and 0.3% respectively but Hang Seng and Shanghai fell 1.9% and 0.3% respectively.

 

AT HOME

 

Sensex and Nifty surged 1.25% and 1.35% respectively, extending the winning streak to third straight day and closing at the highest level after 21st April and 28th April respectively. Sensex settled at 57570, up 712 points while Nifty added 228 points to finish at 17158. Nifty mid-cap and small-cap indices climbed 1.4% and 1.7% respectively. All the BSE sectoral indices ended in green, with Metal index on the top, up 4.6%, followed by 2.4% higher Energy index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1046 cr, 806 cr and 183 cr respectively. DIIs were net sellers to the tune of Rs 1 cr.

 

Rupee appreciated 51 paise to end at 79.25/$.

 

For the week, Sensex and Nifty gained 2.7% and 2.6% respectively, extending last week's mammoth upmove. Over the weekend, China’s official PMI for July came in at 49, down from 50.2 in June and lower than the expected 50.4.

 

OUTLOOK

 

Today morning, Nikkei is up 0.3% but Hang Seng and Shanghai are down 1% and 0.5% respectively. SGX Nifty is suggesting around 50 points higher start for our market.

 

In Friday's report we had said that 17377-17414, where two tops made in late April are placed, would be the next target zone and had advised holding on to long positions with the stop-loss of 16650.

 

Nifty touched a high of 17172 before closing at 17158.

 

17377-17414, where two tops made in late April are placed, continues to be the next target zone; Immediate support on the hourly chart has moved up to 16750, with the stop-loss of which, trading longs can be held on to.

 

ITC and UPL will report their quarterly earnings today.