TRAIL STOP-LOSS TO 19525

 

TRAIL STOP-LOSS TO 19525

 

WORLD MARKETS

 

Dow inched up 0.2% while S & P 500 and Nasdaq fell 0.3% and 0.9% respectively as fresh set to strong labor market data contributed to fears of tight monetary policy.

 

Weekly jobless claims came in at 216,000, versus the 230,000 expected, while second-quarter labor costs rose more than anticipated.

 

U.S. 10-year treasury yield fell 4 bps to 4.548%. Dollar index inched up 0.2% to 105.05. Gold rose 0.2% to $1919 per ounce.

 

Brent and WTI crude futures fell 0.8% each to $89.92 and $86.67 a barrel respectively.

 

In Europe, FTSE gained 0.2%, CAC was little changed while DAX fell 0.1%. The euro zone final GDP grew by 0.1% in the second quarter versus the prior period, lower than the 0.3% growth estimated in a preliminary reading.

 

China's overall exports fell 8.8% y-o-y in August and imports contracted 7.3%. But crude imports surged 30.9%.

 

AT HOME

 

Benchmark indices surged 0.6% each, extending the winning streak to fifth consecutive day and closed at the highest level after 1st August. Sensex settled at 66265, up 385 points while Nifty added 116 points to finish at 19727. Nifty mid-cap and small-cap indices gained 0.8% and 0.5% respectively, extending the winning streak to ninth consecutive day and hit fresh record highs. Nifty Realty and PSU Bank indices were the top gainers among the sectoral indices, up 1.5% and 1.2% respectively while FMCG and Pharma indices were the top losers, down 0.4% and 0.3% respectively.

 

FIIs net sold stocks worth Rs 759 cr but net bought index futures and stock futures worth Rs 1367 cr and 2540 cr respectively. DIIs were net buyers to the tune of Rs 28 cr.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-1% but GIFT Nifty is suggesting a modestly higher start for our market.

 

In yesterday's report we had said that 19645, the top made on 9th August, continued to be immediate upside level to eye, upon crossover of which, 19795, the top made in August, would be next target and had advised trailing the stop-loss in longs to 19450.

 

Nifty crossed 19645 and surged all the way to 19737 before closing at 19727.

 

19795, followed by 19867, the tops made on 1st August and 27th July respectively, are the next upside targets to eye; Immediate support on the hourly chart has moved up to 19525, with the stop-loss of which, trading longs can be held on to. 

 

For Banknifty 45300, followed by 45775, the 61.8% and 78.6% retracement level of the 46370-43600 fall, are the next upside levels to eye; On the way down, 44400 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

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