TRAIL STOP-LOSS TO 17500

 

TRAIL STOP-LOSS TO 17500

 

WORLD MARKETS

 

US indices gained 0.9%-1.3%, extending Friday's big upmove.

 

On the data front, S&P Global's Composite PMI fell to a two-month low of 47.3.

 

US 10-year treasury yield added 3 bps to 4.242%. Dollar index inched up 0.1% to 112. Gold fell 0.4% to $1650 per ounce.

 

Shares of Chinese companies listed in the U.S. plunged after Chinese President Xi paved the way for an unprecedented third term as leader and packed the Politburo standing committee, the core circle of power in the ruling Communist Party of China, with loyalists.

 

Brent crude futures for December delivery were down 3 cents, 0.03%, at $93.47 a barrel and WTI crude lost 20 cents, 0.24%, at $84.85 a barrel.

 

European markets gained 0.6%-1.9%  after the announcement that Rishi Sunak would replace Liz Truss as U.K. prime minister.

 

Earlier, shares of Chinese tech giants plunged on fears for what Xi Jinping’s ever-intensifying grip on power means for its companies, following the annual Party Congress.

 

AT HOME

 

Benchmark indices rose 0.9% each on the Muhurat Trading session, extending the winning streak to seventh consecutive session and closing at the highest level after mid-September. Sensex settled at 59831, up 524 points while Nifty added 154 points to finish at 17730. Nifty mid-cap and small-cap indices gained 0.5% and 0.9% respectively. Except 0.1% lower FMCG index, all the NSE sectoral indices ended higher, with Nifty Bank and Financial Services indices on the top, up 1.3% each.

 

OUTLOOK

 

Today morning, Nikkei is up a percent but Hang Seng and Shanghai are modestly lower. SGX Nifty is suggesting around 75 points higher start for our market.

 

In Friday's report we had said that 17607 followed by 17807, the 61.8% and 78.6% retracement levels of the recent 18096-16747 fall, are the upside levels to eye and had advised holding on to long positions with the stop-loss of 17250.

 

Nifty closed at 17576 after touching a high of 17670 on Friday. Yesterday, it surged to 17777 before closing at 17730 and is set to open near 17800 today.

 

17807, the 78.6% retracement level of the recent 18096-16747 fall, continues to be next upside level to eye, upon crossover of which, 18096, the top made in September, would be the next target; immediate support on the hourly chart has moved up to 17500, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 41840, the top made in September, is the next upside level to eye; 40300 is the immediate support.