STAY LONG WITH THE STOP-LOSS OF 19080

 

STAY LONG WITH THE STOP-LOSS OF 19080

 

WORLD MARKETS

 

Dow slipped 0.4% while S & P 500 and Nasdaq eased 0.2% each after minutes of the latest Fed meeting showed that the central bank was split on its decision to pause its rate hikes in June and sees more hikes ahead at a slower pace.

 

U.S. 10-year treasury yield rose 8 bps to 3.936%. Dollar index rose 0.3% to 103.35. Gold fell 0.6% to $1915 per ounce.

 

U.S. crude rose 2.9% to $71.79 a barrel and Brent crude futures rose 0.5% to $76.65 a barrel.

 

European markets fell 0.6%-1%. PMI figures for the euro zone showed business output contracted in June.

 

Data from China showed services activity expanded at the slowest pace for five months in June.

 

AT HOME

 

Benchmark indices ended little changed after a rangebound session. Sensex settled at 65446, down 33 points while Nifty added 9 points to finish at 19398. Nifty mid-cap and small-cap indices however climbed 0.7% each, extending the winning streak to seventh consecutive day and the former hitting fresh record high. Nifty FMCG and Auto indices climbed 1.8% and 1.6% respectively, becoming top gainers among the sectoral indices while Financial Services and Bank indices were the top losers, down 0.8% and 0.3% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1603 cr, 463 cr and 87 cr respectively. DIIs were net sellers to the tune of Rs 439 cr.

 

Rupee depreciated 21 paise to end at 82.23/$.

 

India's June Services PMI fell to 58.5 from 61.2 in May. Composite PMI too cooled off to 59.4 from 61.6.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 1% each while Shanghai is flat. GIFT Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 20071, the next Fibonacci extension level, was the next major target to eye while immediate support on the hourly chart had moved up to 19080, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after a rangebound session, ended marginally higher at 19398.

 

20071, the next Fibonacci extension level, continues to be next major target to eye; 19080 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, upon crossover of Tuesday's high, i.e. 45655, 46200 would be next target; 44600 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

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