TRAIL STOP-LOSS TO 24300

 

TRAIL STOP-LOSS TO 24300

 

WORLD MARKETS

 

U.S. indices gained 0.6% each on Friday.

 

The U.S. producer price index came in at 2.6% annually and 0.2% month-on-month, with the latter slightly ahead of expectations.

 

U.S. 10-year treasury yield fell 3 bps to 4.187%. Dollar index tumbled 0.4% to 104.08. Gold fell 0.2% to $2411 per ounce.

 

WTI crude futures fell 0.5% to $82.21 while Brent futures fell 0.4% to $85.03 per barrel.

 

European markets rose 0.4%-1.3%.

 

For the week, U.S. indices gained 0.6%-1.6% with the Dow on the top. U.S. 10-year treasury yield fell 10 bps. Dollar index fell 0.8%. Gold rose 0.8%. WTI and Brent crude fell 1.4% and 2.2% respectively, snapping a 4-week winning streak.

 

AT HOME

 

Benchmark indices climbed 0.8% each on Friday, snapping a 2-day losing streak and hitting fresh record highs. Sensex settled at 80519, up 622 points while Nifty added 186 points to finish at 24502. Nifty mid-cap index was little changed while small-cap index inched up 0.2%. Nifty IT index soared 4.5%, becoming top gainer among the sectoral indices, followed by 2.1% higher Media index. Realty and Consumer Durables indices were the top losers, down 1.5% and 0.6% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 4022 cr, 1414 cr and 6539 cr respectively. DIIs were net sellers to the tune of Rs 1651 cr.

 

Rupee appreciated 2 paise to end at 83.54/$.

 

For the week, Sensex and Nifty gained 0.7% and 0.6% respectively, extending the winning streak to sixth consecutive week.

 

HCL Tech's first quarter numbers were slightly better-than-expectation. Constant currency revenue declined 1.6%. It maintained FY25 revenue growth guidance of 3-5% and margin guidance of 18-19%.

 

India's retail inflation surged above 5% to hit 4-month high due to surge in vegetable prices. India's industrial output accelerated to 5.9% in May.

 

OUTLOOK

 

Today, Japan’s markets are closed for a public holiday. Shanghai is marginally higher while Hang Seng is off 0.8%. GIFT Nifty is suggesting around 70 points higher start for our market.

 

In Friday's report we had said that 24650-24700 continued to be next upside target zone and had advised holding on to longs with stop-loss of 24141.

 

Nifty surged to 24592 before closing at 24502.

 

24750-24800 is the next target zone for Nifty; 24300 is the immediate support on hourly chart, with the stop-loss which, trading longs can be held on to.

 

For Banknifty, 51749, the low made during the week, which roughly coincided with 20-DMA, is the immediate support, upon breach of which, 34-DMA, placed around 51000, would be bigger support to eye. 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.

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