TRAIL STOP-LOSS TO 19650

 

TRAIL STOP-LOSS TO 19650

 

WORLD MARKETS

 

Dow rose half a percent, extending the winning streak to ninth consecutive day, on the back of better-than-expected earnings results from drug maker Johnson & Johnson but S & P 500 and Nasdaq fell 0.7% and 2% respectively on account of slides in Netflix and Tesla

shares.

 

Jobless claims fell 9,000 to a seasonally adjusted 228,000 for the week ended July 15, as against the expected figure of 242,000.

 

U.S. 10-year treasury yield jumped 10 bps to 3.854%. Dollar index rose half a percent to 100.82. Gold fell 0.4% to $1969 per ounce.

 

Brent futures rose 0.2% to $79.65 a barrel and WTI crude gained 0.3% to $75.63 a barrel.

 

In Europe, FTSE and CAC rose 0.8% each while DAX gained 0.6%

 

Japan posted a surprise trade surplus of 43 billion yen ($308 million), its first surplus in 23 months.

 

AT HOME

 

Benchmark indices surged seven tenth of a percent each, extending the winning streak to sixth straight session and hit fresh record highs. Sensex settled at 67571, up 474 points while Nifty added 146 points to finish at 19979. Nifty mid-cap and small-cap indices gained 0.25% and 0.4% respectively. Except 0.7% and 0.2% lower IT and Consumer Durables indices respectively, all the NSE sectoral indices ended higher with Pharma and FMCG indices on the top, up 1.5% and 1.4% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 3371 cr, 996 cr and 1982 cr respectively. DIIs were net sellers to the tune of Rs 193 cr.

 

Rupee appreciated 11 paise to end at 81.98/$.

 

Infosys reported earnings which were largely in-line with estimate but cut full year revenue growth guidance from 4-7% to 1-3.5%. Infosys ADR plunged over 8%.

 

HUL's revenue and EBIDTA missed estimate and volume growth was slowest in five quarters.

 

OUTLOOK

 

Japan's June core inflation rate - which strips out costs of fresh food - came in at 3.3%, in line with expectations

 

Today morning, Hang Seng and Shanghai are up 0.2% and 0.1% respectively while Nikkei is off 0.4%. GIFT Nifty is suggesting around 90 points lower start for our market.

 

In yesterday's report we had said that 19950, followed by 20070 were the next upside targets to eye while 19600-19550 was the immediate support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged to 19991 before closing at 19979 and is set to open below 19900 today.

 

20071 is the next upside target to eye; 19700-19650 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 46500 is the next upside target; 45350 is the immediate support.

 

Reliance Industries, HDFC Life, Ultratech Cement and JSW Steel will report their quarterly earnings today.

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