TRAIL STOP-LOSS TO 18070

 

TRAIL STOP-LOSS TO 18070

 

WORLD MARKETS

 

US indices rose 0.8%-1.3% on Monday, extending Friday's upmove. Yesterday, US indices gained 0.5%-1%, extending the winning streak to third straight session ahead of US mid-term elections.

 

The elections will determine which party will control Congress and could affect the direction of future spending. Democrats currently control the House, and have a majority in the Senate.

 

US 10-year treasury yield fell 8 bps to 4.13%. Dollar index fell  half a percent to 109.63. Gold jumped 2.2% to $1712 per ounce.

 

Brent futures dipped 2.4% to $95.59 a barrel and WTI crude fell 2.9% to $89.15 per barrel.

 

European markets rose 0.1%-1.2%.

 

AT HOME

 

After opening higher by three fourth of a percent, benchmark indices tumbled a percent from the top, but staged a "V" shape recovery in late trade to end higher by half a percent. Both the indices ended at the highest level after 17th January 2022. Sensex settled at 61185, up 235 points while Nifty added 85 points to finish at 18202. Nifty mid-cap and small-cap indices gained 0.8% each. Nifty PSU Bank index soared 4.5%, becoming top gainer among sectoral indices, followed by 1.6% higher Metal index. Pharma and Healthcare indices were the top losers, down 1.4% and 1.3% respectively.

 

FIIs net bought stocks and stock futures worth Rs 1949 cr and 450 cr respectively but net sold index futures worth Rs 108 cr. DIIs were net sellers to the tune of Rs 844 cr.

 

Rupee appreciated 52 paise to end at 81.92/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with modest cuts. SGX Nifty is trading near 18400, suggesting nearly 140 points gap-up start when compared to Monday's close of Nifty futures.

 

In Monday's report we had said that 18350, the calendar 2022 top made in January, continued to be next upside level to eye while 17850 continued to be immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty rose to touch a high of 18255 before closing at 18202. The benchmark is set to open near 18350 today.

 

18350, the calendar 2022 top made in January, continues to be next upside level to eye, upon crossover of which, 18604, the all-tiem high made in October 2021, would be next target; Immediate support on the hourly chart would move up to 18070 after today's gap-up start, with the stop-loss of which, trading longs could be held on to.

 

Banknifty is expected to cross 41840, the all-time high made in September, with today's higher start and 42500 would be next target to eye; Immediate support on the hourly chart would move higher to 41300, with the stop-loss of which, trading longs can be held on to.

 

Tata Motors will report its quarterly earnings today.