TRAIL STOP-LOSS TO 17025

 

TRAIL STOP-LOSS TO 17025

 

WORLD MARKETS

 

Dow tumbled 1.2% while S & P 500 and Nasdaq fell 0.7% and 0.2% respectively, as House Speaker Nancy Pelosi’s Taiwan visit increased tensions between the U.S. and China. Markets also reacted to multiple comments from regional Fed presidents who all threw cold water on the idea that the central bank will be done raising rates or move them lower anytime soon.

 

US 10-year treasury yield jumped nearly 18 bps to 2.752%. Dollar index jumped 0.9% to 106.34. Spot gold fell 0.6 to $1760 per ounce.

 

Brent futures rose 51 cents, or 0.5%, to settle at $100.54 a barrel, while WTI crude rose 53 cents, or 0.6%, to $94.42.

 

European markets fell between 0.1%-0.4%.

 

AT HOME

 

After falling seven tenth of a percent in the first hour, benchmark indices recouped all the losses through the session to end marginally higher. Sensex settled at 58136, up 20 points while Nifty added 5 points to finish at 17345. Nifty mid-cap and small-cap indices gained 0.3% and 0.7% respectively. BSE Power and Utilities indices climbed 2% and 1.8% respectively, becoming top gainers among the sectoral indices, while Realty index tumbled 1.7%, becoming top loser, followed by half a percent lower IT and Teck indices.

 

FIIs net bought stocks and stock futures worth Rs 825 cr and 74 cr respectively but net sold index futures worth Rs 2727 cr. DIIs were net buyers to the tune of Rs 118 cr.

 

Rupee appreciated 31 paise to end at 78.71/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.5%-1% and SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 17377-17414, where two tops made in late April are placed, continued to be the next target zone, and had advised trailing stop-loss in long positions to 16900.

 

Nifty, after touching a low of 17215, reversed and surged all the way to 17390 before closing at 17345.

 

17487, the 78.6% retracement level of the 18115-15183 fall, is the next upside level to eye, 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 17025, with the stop-loss of which, trading longs can be held on to.

 

In case of Banknifty, 38637, the 67% retracement levels of the entire 41830-32155 fall, is the next upside levels to eye; 37400 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.