TRAIL STOP-LOSS TO 23900

 

TRAIL STOP-LOSS TO 23900

 

WORLD MARKETS

 

U.S. indices rose 0.1%-0.8% with the Nasdaq Composite closing at a record.

 

Data showed U.S. manufacturing index fell to 48.1 in June, lower than the forecast of 49.1. U.S. construction spending for May also came in weaker than expected, falling 0.1%, compared with expectations for a 0.2% rise.

 

U.S. 10-year treasury yield rose 6 bps to 4.465%. Dollar index was flat at 105.83. Gold rose 0.2% to $2331 per ounce.

 

The yen sank to a new 38-year low after data showed Japan’s economy shrank more than initially reported in the first quarter. Business mood in Japan’s service-sector soured in June, offsetting a big lift in factory confidence.

 

WTI crude futures rose 2.3% to $83.38 while Brent futures rose 1.9% to $86.60 per barrel.

 

In Europe, CAC and DAX rose 1.1% and 0.3% respectively while FTSE was little changed.

 

AT HOME

 

Sensex and Nifty climbed 0.6% each, rising for the fifth session in past six. Sensex settled at 79476, up 443 points while Nifty added 131 points to finish at 24142. Nifty mid-cap and small-cap indices surged 1% and 1.5% respectively, both hitting fresh record highs. Except 0.8% and 0.3% lower PSU Bank and Realty indices respectively, all the NSE sectoral indices ended higher with Media and IT indices being the top gainers, up 2.4% and 2% respectively. NSE advance-decline ratio stood at 2.5:1.

 

Bajaj Auto June sales rose 5% y-o-y to 3.58 lk units. Escorts Kubota sales dipped 2.6% to 9593 units. M & M's auto sales rose 11% to 69397 units while tractor sales rose 6% to 47319 units. Maruti reported 12.4% rise at 1.79 lk units. Ashok Leyland sales dipped 4% to 14940 units.

 

FIIs net sold stocks and stock futures worth Rs 426 cr and 983 cr respectively but net bought index futures worth Rs 264 cr. DIIs were net buyers to the tune of Rs 3917 cr.

 

Rupee depreciated 6 paise to end at 83.44/$.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 1.3% and 0.5% respectively while Shanghai is little changed. GIFT Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 24174, the top made on Friday, coincided with a rising trendline adjoining tops made in May and early June and hence was the immediate hurdle to eye. while 23750 was the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty rose to touch a high of 24164 before closing at 24142.

 

24250-24300 is the next target zone for Nifty; 23900 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 52000 continues to be immediate support on the hourly chart, upon breach of which, 51138, the low made last week, would be next downside level to eye. On the way up, 53180, the top made last week, is the immediate hurdle, upon crossover of which, 54100 would be next upside level to eye.

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