TRAIL STOP-LOSS TO 19950

 

TRAIL STOP-LOSS TO 19950

 

WORLD MARKETS

 

U.S. indices fell 0.8%-1.6% on Friday.

 

The University of Michigan’s preliminary reading of its Consumer Sentiment Index dropped to 67.7 this month from a final reading of 69.5 in August and below the forecast of 69.1. However, consumers saw inflation lower on both a one-year and five-year basis. Import prices increased 0.5% last month as fuel prices jumped, but underlying price pressures stayed subdued. New York Fed's factory activity index picked up in September.

 

U.S. 10-year treasury yield rose 4 bps to 4.334%. Dollar index was flat at 105.33. Gold rose 0.7% to $1924 per ounce.

 

Brent crude futures rose 0.3% to settle at $93.93 a barrel, while WTI futures rose 0.7% to close at $90.77 a barrel.

 

European markets gained 0.5%-1%.

 

Earlier, China’s August retail sales and factory output beat expectations, but the print for fixed asset investment came in slightly below expected. Home prices slipped 0.1% in August from the year before.

 

For the week, Dow inched up 0.1% but S & P 500 and Nasdaq fell 0.2% and 0.4% respectively, extending last week's cuts. European markets gained 1%-3.1%. In Asia, Nikkei and Nifty gained 2.8% and 1.9% respectively, Shanghai was flat while Hang Seng fell 0.1%. U.S. 10-year treasury yield rose 6 bps to 4.331%. Dollar index rose 0.3% for it's ninth straight positive week. Gold rose 0.3% to $1924 per ounce. Oil prices gained about 4% on a weekly basis to a near 10-month high on a tighter supply outlook and OPEC optimism over the resilience of energy demand in major economies.

 

AT HOME

 

Benchmark indices gained nearly half a percent to hit fresh record highs. Sensex added 320 points to settle at 67838 while Nifty finished at 20192, up 89 points. Nifty mid-cap and small-cap indices gained 0.3% and 0.4% respectively. Nifty Auto and IT indices were the top gainers among the sectoral indices, gaining 1.6% and 0.9% respectively while Oil & Gas and FMCG indices were the top losers, down 0.8% and 0.5% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 164 cr, 280 cr and 5369 cr respectively. DIIs were net buyers to the tune of Rs 1939 cr.

 

Rupee depreciated 16 paise to end at 83.19/$.

 

India's goods trade deficit touched a 10-month high of over $24 bn in August due to increased oil imports. Exports rose 1.6% to $33.92 bn.

 

For the week, Sensex and Nifty gained 1.9% each, extending the winning streak to third consecutive week.

 

OUTLOOK

 

Today morning, Nikkei is up a percent while Hang Seng and Shanghai are down 1% and 0.2% respectively. GIFT Nifty is suggesting around 60 points lower start for our market.

 

In Friday's report we had said that 20250-20300 continued to be next target area while 19900-19850 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

Nifty touched a high of 20222 before closing at 20192.

 

20300, around which, a rising trendline adjoining tops made in December 2022 and July 2023 is placed, is the next upside level to eye; 20000-19950 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 47000, around which a rising trendline adjoining tops made in December 2022 and July 2023 is placed, is the next upside target to eye. 45700-45650 is the immediate support zone, with the stop-loss of which, trading longs can be held on to.

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