TRAIL STOP-LOSS TO 19850

 

TRAIL STOP-LOSS TO 19850

 

WORLD MARKETS

 

Dow fell 0.2% while S & P 500 and Nasdaq rose 0.1% and 0.3% respectively after digesting August inflation report.

 

August headline CPI rose 0.6% over the month, and was up 3.7% y-o-y as against expected rise of 0.6% and 3.6% respectively. Core CPI increased 0.3% and 4.3% respectively, against estimates for 0.2% and 4.3%.

 

U.S. 10-year treasury yield, after touching a high of 4.352%, eased to end 3 bps lower at 4.254%. Dollar index rose 0.2% to 104.76. Gold fell 0.2% to $1908 per ounce.

 

Brent futures dropped 13 cents to $91.93 a barrel and WTI crude edged 25 cents lower to $88.59.

 

In Europe, FTSE was flat while DAX and CAC fell 0.4% each. U.K. economy contracted by 0.5% in July, higher than the expected 0.2% fall.

 

AT HOME

 

Benchmark indices gained 0.4% each, with Nifty posting highest ever close while Sensex closed at the highest level after 20th July. Sensex added 245 points to settle at 67466 while Nifty finished at 20070, up 77 points. Nifty mid-cap and small-cap indices gained 0.2% and 1% respectively. Except 0.5% and 0.3% lower Auto and IT indices respectively, all the NSE sectoral indices ended higher, with PSU Bank index on the top, up 4.2%, followed by 1.5% higher Media index.

 

FIIs net sold stocks worth Rs 1632 cr but net bought index futures and stock futures worth Rs 1269 cr and 4547 cr respectively. DIIs were net buyers to the tune of Rs 850 cr.

 

Rupee depreciated 7 paise to end at 82.99/$.

 

OUTLOOK

 

Today morning, Asian markets are up 0.2%-1.1% and GIFT Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 20250 continued to be next upside target to eye while 19700 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty rose to touch a high of 20096 before closing at 20070.

 

20250-20300, around which, a rising trendline adjoining tops made in December 2022 and July 2023 is placed, continues to be next target area; 19850 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 46370, the record high made on 21st July, continues to be next upside level to eye; On the way down, 45300-45250 is the immediate support area on the hourly chart.

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