TRAIL STOP-LOSS TO 19400

 

TRAIL STOP-LOSS TO 19400

 

WORLD MARKETS

 

Dow rose 0.3% on Friday on the back of strong corporate earnings but S & P 500 and Nasdaq inched lower by 0.1% and 0.2% respectively.

 

UnitedHealth jumped more than 7% after it reported better-than-expected adjusted earnings and revenue. The company also raised the lower end of its full-year adjusted earnings guidance. JPMorgan Chase rose 0.6% after its second-quarter earnings topped expectations. Wells Fargo inched down 0.3%, even though the bank posted better-than-expected results.

 

U.S. 10-year treasury yield rose 6 bps to 3.834%. Dollar index inched up 0.2% to 99.96, snapping a 6-day losing streak. Gold fell 0.3% to $1955 per ounce.

 

Brent crude futures fell 1.8% to $79.87 a barrel while WTI crude futures fell 1.9% to settle at $75.42.

 

In Europe, FTSE and DAX fell 0.1% and 0.2% respectively while CAC inched up 0.1%.

 

On a weekly basis, the Dow notched its best performance since March, up 2.3%. The S&P 500 added 2.4%, and the Nasdaq gained 3.3%.

 

AT HOME

 

Benchmark indices climbed 0.8% each and hit fresh record highs. Sensex settled at 66060, up 502 points while Nifty added 150 points to finish at 19564. Nifty mid-cap and small-cap indices surged 1.2% and 1.4% respectively with the former hitting fresh record highs. All the NSE sectoral indices ended higher, with IT and Media indices on the top, up 4.4% and 3.9% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2636 cr, 252 cr and 3183 cr respectively. DIIs were net sellers to the tune of Rs 772 cr.

 

Rupee depreciated 10 paise to end at 82.17/$.

 

For the week, Sensex and Nifty gained 1.2%, extending the winning streak to third consecutive week.

 

India's June WPI came in at negative 4.12% as against negative 3.48% in May, marking the lowest level since October 2015. Core WPI stood at negative 2% v/s negative 2.10%.

 

India's trade deficit in June narrowed to $20.1 bn from $22.1 bn in May as exports and imports fell by 5.7% and 7% respectively on monthly basis. On yearly basis, exports fell 22% to $33 bn while imports declined 17.5% to $53.1 bn.

 

OUTLOOK

 

China's Q2GDP growth has come in at 6.3%, missing estimate of nearly 7%.

 

Today morning, Asian markets are trading lower with Shanghai leading the losses. GIFT Nifty is suggesting around 25 points higher start for our market.

 

In Friday's report we had said that 19750 continued to be next upside target to eye while 19303 continued to be immediate support.

 

Nifty surged to 19595 before closing at 19564.

 

19750 continues to be next upside target for Nifty; 19400 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 20-DMA and 34-DMA, placed around 44500 and 44300 respectively, are the downside supports to eye. On the way up, 45100-45200 is the immediate resistance zone, above which, 45655, the top made on 4th July, would be next upside target to eye.

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