TRAIL STOP-LOSS TO 22750

 

TRAIL STOP-LOSS TO 22750

 

WORLD MARKETS

 

U.S. markets were shut yesterday for Memorial Day.

 

In Europe, U.K. markets were closed for the late May bank holiday. DAX and CAC rose 0.4% and 0.5% respectively. European Central Bank officials signaled that rate cuts may be on the horizon for the world’s largest economic bloc.

 

Dollar index fell 0.2% to 104.58. Gold rose 0.7% to $2351 per ounce.

 

Brent crude futures inched up 11 cents to $82.23 a barrel while WTI crude futures rose 13 cents to $77.85.

 

China’s industrial profits rose 4.3% year on year in the January to April period.

 

AT HOME

 

After gaining nearly two third of a percent and hitting fresh record highs, benchmark indices reversed in second half to end marginally in the red. Sensex settled at 75390, down 20 points while Nifty lost 25 points to finish at 22932. Nifty mid-cap and small-cap indices however gained 0.6% and 0.8% respectively. Nifty PSU Bank and Realty indices were the top gainers among the sectoral indices, up 1.3% and 0.8% respectively while Media index was the top loser, down 1%, followed by 0.6% lower Metal and Oil & Gas indices.

 

FIIs net sold stocks worth Rs 541 cr but net bought index futures and stock futures worth Rs 2599 cr and 10211 cr respectively. DIIs were net buyers to the tune of Rs 923 cr.

 

Rupee depreciated 3 paise to end at 83.13/$.

 

OUTLOOK

 

Today morning, Hang Seng is up 0.6%, Shanghai is flat while Nikkei is off quarter of a percent. GIFT Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 23150, around which a rising trendline adjoining recent monthly tops was placed, was the next upside target and had advised trailing stop-loss in longs to 22650.

 

Nifty, after touching a high of 23110, reversed to end at 22932.

 

23100-23150, where a rising trendline adjoining recent monthly tops is placed, is the immediate resistance zone, a crossover of which is required for a fresh upmove. If that happens, 23350 would be next upside target; 22750 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 49975, the top made in April, is the next upside levels to eye; 48400 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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