25000, 25400 NEXT; TRAIL STOP-LOSS TO 24500

 

25000, 25400 NEXT; TRAIL STOP-LOSS TO 24500

 

WORLD MARKETS

 

U.S. indices fell 0.7%-1.3%.

 

Weekly initial jobless claims jumped by 20,000 to 243,000, above the 230,000 estimate. In addition, a gauge of manufacturing activity in the U.S. Mid-Atlantic region expanded more than expected in July, boosted by a surge in new orders.

 

U.S. 10-year treasury yield rose 5 bps to 4.204%. Dollar index rose 0.4% to 104.18. Gold fell half a percent to $2445 per ounce.

 

The ECB left rates unchanged and gave no insight into its next move, arguing that domestic price pressures remain high and inflation will be above its target well into next year.

 

WTI crude futures fell 3 cents to $82.82 while Brent futures rose 3 cents to $85.11 per barrel.

 

In Europe, FTSE and CAC rose 0.2% each while DAX fell 0.4%.

 

AT HOME

 

After falling 0.7% from morning high, benchmark indices surged a percent and fifth from bottom of the day to end higher by eight tenth of a percent, extending the winning streak to fourth straight session and hitting fresh record highs. Sensex settled at 81343, up 626 points while Nifty added 187 points to finish at 24800. Nifty mid-cap and small-cap indices however tumbled 1% and 1.2% respectively, posting their worst session since 19th and 4th June respectively. Nifty IT index soared 2.2%, becoming top gainer among the sectoral indices, followed by 1% higher FMCG index. Media index tumbled 3.6% to become top loser, followed by 1% lower Consumer Durables index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 5484 cr, 2595 cr and 7556 cr respectively. DIIs were net sellers to the tune of Rs 2904 cr.

 

Rupee depreciated 7 paise to end at 83.65/$.

 

Infosys reported strong growth after 5-quarters of weakness. Margins beat estimate, rising 100 bps to 21.1%. It also raise full year revenue growth guidance to 3-4% from earlier 1-3%.

 

OUTLOOK

 

Today morning, Nikkei is down 2% while Shanghai and Nikkei are own 0.6% and 0.4% respectively. GIFT Nifty is suggesting nearly 50 points higher start for our market.

 

In yesterday's report we had said that 24750-24800 continued to be next target zone for Nifty while 24450 was the immediate support on the hourly, with the stop-loss which, trading longs could be held on to.

 

Nifty soared to 24837 before closing at 24800.

 

25000 followed by 25400 are the next upside levels to eye; 24500 is the immediate support on hourly chart, with the stop-loss which, trading longs could be held on to.

 

For Banknifty, 52800 is the immediate hurdle on hourly chart, upon crossover of which, 53357, the top made last week, would be next upside level to eye. 51749, the low made last week, which roughly coincided with 20-DMA, is the immediate support.

 

Reliance Industries, Wipro and Ultratech Cement will report their quarterly earnings today.

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