TRAIL STOP-LOSS TO 16900

 

TRAIL STOP-LOSS TO 16900

 

WORLD MARKETS

 

US indices fell 0.1%-0.3%, snapping 3-day winning streak.

 

US 10-year treasury yield fell 7 bps to 2.577%. Dollar index fell 0.4% to 105.41. Spot gold rose 0.4% to $1,772 per ounce.

 

Oil prices dropped sharply as weak manufacturing data from China and Europe weighed on the demand outlook. Brent crude futures settled $3.94, or 3.79%, lower at $100.03 per barrel and WTI crude ended the day at $93.89 per barrel, for a loss of 4.8% or $4.73.

 

European markets ended marginally lower.  Euro zone manufacturing activity contracted in July, S&P Global’s final manufacturing PMI revealed.

 

AT HOME

 

Benchmark indices surged one percent each, extending the winning streak to fourth consecutive day and closing at the highest level after 13th April and 21st April respectively. Sensex settled at 58115, up 545 points while Nifty added 182 points to finish at 17340. Nifty mid-cap and small-cap indices climbed 1.7% and 1.8% respectively. All the BSE sectoral indices ended higher, with Power and Utilities indices on the top, up 3.4% each.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2321 cr, 2095 cr and 597 cr respectively. DIIs were net sellers to the tune of Rs 822 cr.

 

Rupee appreciated 23 paise to end at 79.02/$.

 

India's July manufacturing PMI rose to 56.4 from 53.9 month-on-month.

 

GST collection remained above Rs. 1.4 lk cr for 5th straight month with July monthly collections coming in at Rs 1.49 lk cr, up 28% against the same month last year.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 1.4%-2.4% and SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 17377-17414, where two tops made in late April are placed, continues to be the next target zone and had advised holding on to long positions with the stop-loss of 16750.

 

Nifty soared to touch a high of 17356 before closing at 17340.

 

17377-17414, where two tops made in late April are placed, continues to be the next target zone, upon crossover of which, 17750, around which a trendline adjoining tops made in January and April is placed, would be the next target. ; Immediate support on the hourly chart has moved up to 16900, with the stop-loss of which, trading longs can be held on to.

 

In case of Banknifty, 38134 and 38637, the 61.8% and 67% retracement levels of the entire 41830-32155 fall, are the next upside levels to eye; 37150 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.