TRAIL STOP-LOSS TO 17550

 

TRAIL STOP-LOSS TO 17550

 

WORLD MARKETS

 

On Friday US indices surged 1.3%-2.1%, with the S & P 500 and Nasdaq notching their fourth straight positive week, on signs that inflation may be peaking. Yesterday, US indices gained 0.4%-0.6%.

 

US 10-year Treasury yield fell 5 bps to 2.799%. Dollar index climbed 0.8% to 106.49. Spot gold fell 1.3% to $1,779 per ounce,

 

Brent crude futures ended the day 3.1% lower at $95.10 per barrel and WTI crude settled 2.9% lower at $89.41 per barrel.

 

European markets rose 0.1%-0.5%.

 

China’s industrial output and retail sales data for July missed expectations. The central bank in China, cut lending rates to revive demand.

 

AT HOME

 

Benchmark indices rose a fifth of a percent, extending the winning streak to fifth consecutive day. Sensex settled at 59462, up 130 points while Nifty added 39 points to finish at 17698. Nifty mid-cap and small-cap indices gained 0.7% and 0.25% respectively. BSE Oil & Gas and Energy indices climbed 2.5% and 2.2% respectively, becoming top gainers among the sectoral indices, while Healthcare index was the top loser, down 1%, followed by 0.8% lower Teck and IT indices.

 

FIIs net bought stocks, index futures and stock futures worth Rs 3040 cr, 921 cr and 119 cr respectively. DIIs were net sellers to the tune of Rs 839 cr.

 

Rupee depreciated 2 paise to end at 79.66/$.

 

For the week, Sensex and Nifty gained 1.8% and 1.7% respectively, extending the winning streak to fourth consecutive week.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are modestly higher while Nikkei is little changed. SGX Nifty is trading around 17830, suggesting more than 100 points higher start when compared to Friday's close of Nifty futures.

 

In Friday's report we had said that 17719, the top made Thursday, was the immediate hurdle, upon crossover of which, 17900 would be next upside level to eye.  We had also advised holding on to long positions with the stop-loss of 17430.

 

Nifty, after touching a low of 17597, rebounded to touch a high of 17724 before closing at 17698. The benchmark is set to open near 17800 today.

 

17850-17900, around which a trendline adjoining tops made in October 2021 and January 2022 is placed, is the next target area; Once this hurdle is taken out, 18115, the top made in April, would be the next target. 17550 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 39425, the top made in February 2022, is the next upside level to eye, above which, 39760, the 78.6% retracement level of the entire 41830-34018 fall, would be the next target; 38500 is the immediate support, with the stop-loss of which, trading longs can be held on to.