TRAIL STOP-LOSS TO 17700

 

TRAIL STOP-LOSS TO 17700

 

WORLD MARKETS

 

US indices fell 0.5%-1.25%, with the Dow snapping 5-day winning streak, after digesting minutes of the latest Fed meeting.

 

Minutes showed that the central bank would continue its aggressive hiking campaign until it can tame inflation. At the same time, the Fed also indicated that it could soon slow the speed of its tightening, while also acknowledging the state of the economy and risk to the downside for gross domestic product growth.

 

Retail sales for July were flat, compared with the estimate for a 0.1% gain.

Excluding autos, sales increased 0.4% against expectations for no gain.

 

US 10-year treasury yield rose 9 bps to 2.90%. Dollar index inched up 0.2% to 106.67. Gold fell 0.8% to $1761 per ounce.

 

Brent crude settled $1.31, or 1.42% higher at $93.65 per barrel and WTI crude rose $1.58, or 1.8%, to $88.11 per barrel.

 

European markets fell 0.3%-2%.

 

AT HOME

 

Benchmark indices rose seven tenth of a percent each to close at the highest level in nearly 4-1/2 months. Sensex settled at 60260, up 418 points while Nifty added 119 points to finish at 17944. Nifty extended the winning streak to seventh consecutive session. Nifty mid-cap and small-cap indices gained half a percent each. Except 0.3% and 0.1% lower Auto and Capital Goods indices respectively, all the BSE sectoral indices ended in green, with Telecom index on the top, up 1.8%, followed by 1.1% higher Teck and Consumer Durables indices.

 

FIIs net bought stocks and index futures worth Rs 2347 cr and 7 cr respectively but net sold stock futures worth Rs 1030 cr. DIIs were net sellers to the tune of Rs 510 cr.

 

Rupee appreciated 21 paise to end at 79.44/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-1% and SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 17850-17900, continued to be next target area, above which 18115, the top made in April, would be the next target. We had also advised trailing stop-loss in longs to 17575.

 

Nifty soared to touch a high of 17965 before closing at 17944.

 

18115, the top made in April, is the next upside level to eye; Immediate support on the hourly chart has moved up to 17700, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 39760, the 78.6% retracement level of the entire 41830-34018 fall, followed by 40160, the top made in November 2021, are the upside levels to eye; 38900 is the immediate support, with the stop-loss of which, trading longs can be held on to.