TRAIL STOP-LOSS TO 17350

 

TRAIL STOP-LOSS TO 17350

 

WORLD MARKETS

 

US indices fell 0.2%-1.2% with Nasdaq leading the losses on the back of a batch of disappointing company reports ahead of a key inflation reading.

 

On Monday, weaker-than-expected revenue guidance from Nvidia weighed on the chip stocks, and those stocks extended their losses yesterday. Yesterday, chipmaker Micron warned that revenue may fall short of its prior guidance because of “macroeconomic factors and supply chain constraints.”

 

Preliminary second-quarter productivity figures came in slightly better than expected, but still showed a decline of 4.6%. Unit labor costs grew at an annualized rate of 10.8%, above the 9.5% expected.

 

US 10-year treasury yield rose 1 bps to 2.779%. Dollar index was little changed at 106.30. Spot gold was 0.4% higher at $1,795 per ounce.

 

Brent crude settled at $96.31 a barrel, losing 34 cents, or 0.4% and WTI crude settled at $90.50 a barrel, shedding 26 cents, or 0.3%.

 

In Europe, FTSE was flat while DAX and CAC fell 1.1% and 0.5% respectively. U.K. retail sales rose 1.6% in July.

 

AT HOME

 

Sensex and Nifty climbed 0.7% and 0.8% respectively to close in green for the eighth session in past nine. Sensex settled at 58853, up 465 points while Nifty added 127 points to finish at 17525. Nifty mid-cap and small-cap indices rose nearly a third of a percent each. Except a marginally lower Oil & Gas index, all the BSE sectoral indices ended higher, with Capital Goods and Power indices leading the tally, up 2% and 1.9% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1450 cr, 138 cr and 437 cr respectively. DIIs were net sellers to the tune of Rs 141 cr.

 

Rupee depreciated 43 paise to end at 79.66/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down half a percent each while Shanghai is marginally higher. SGX Nifty is suggesting around 40 points lower start for our market today.

 

In Monday's report we had said that 17490, the top made last week, was the immediate hurdle, upon crossover of which, 17725, around which a trendline adjoining tops made in January and April is placed, would be the next target. We had also advised holding on to long positions with the stop-loss of 17161.

 

Nifty crossed 17490 and surged all the way to 17548 before closing at 17525.

 

17725, around which a trendline adjoining tops made in January and April is placed, is the next target to eye; Immediate support on the hourly chart has moved up to 17350, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 38637, the 67% retracement level of the entire 41830-32155 fall, is the next upside levels to eye; 37700 is immediate support.

 

Hindalco, Eicher Motors and Tata Consumer will report their quarterly earnings today.