25078 NEXT; TRAIL STOP-LOSS TO 24550

 

25078 NEXT; TRAIL STOP-LOSS TO 24550

 

WORLD MARKETS

 

Dow and S & P 500 climbed 1.1% each while Nasdaq surged 1.5% on Friday after Federal Reserve Chair Jerome Powell indicated interest rate cuts were on the horizon.

 

During his speech in Jackson Hole, Powell said  “the time has come for policy to adjust,” given that upside risks to inflation have diminished and downside risks to employment have increased.” "The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”, he added.

 

U.S. 10-year treasury yield fell 5 bps to 3.801%. Dollar index nosedived 0.8% to 100.68. Gold jumped 1.2% to $2512 per ounce.

 

WTI crude futures rose 2.5% to $74.83 while Brent futures rose 2.3% to $79.02 per barrel.

 

European markets gained 0.5%-1.1%. A survey showed British consumer confidence held at an almost three-year high in August.

 

BOJ Governor Kazuo Ueda reaffirmed his resolve to raise rates if inflation stayed on course to sustainably hit the bank’s 2% target.

 

For the week, Dow rose 1.3% while Nasdaq and S & P 500 gained 1.4% each. In Europe, FTSE rose 0.2% while DAX and CAC climbed 1.7% each. In Asia, Nifty, Hang Seng and Nikkei rose 1.2%, 0.5% and 0.1% respectively while Shanghai fell 1.3%. U.S. 10-year treasury yield fell 8 bps while Dollar index tumbled 1.7%. Gold rose 0.2%. WTI crude was down 0.7%.

 

AT HOME

 

Benchmark indices ended marginally higher after a rangebound session. Sensex settled at 81086, up 33 points while Nifty added 12 points to finish at 24823. Nifty mid-cap and small-cap indices however fell 0.5% and 0.1% respectively. Except 1.1% higher Auto index, all the NSE sectoral indices ended lower with Realty and Media indices being the top losers, down 2.4% and 1.3% respectively.

 

FIIs net bought stocks and index futures worth Rs 1372 cr and 607 cr respectively but net sold stock futures worth Rs 1944 cr. DIIs were net buyers to the tune of Rs 2972 cr.

 

Rupee appreciated 6 paise to end at 83.89/$.

 

For the week, Sensex and Nifty gained 0.8% and 1.1% respectively, extending the winning streak to second straight week.

 

OUTLOOK

 

Over the weekend, Reuters reported Israel’s Air Force struck Hezbollah targets in Lebanon, shortly before the Iran-backed armed group launched over 320 rockets toward Israel.

 

Today morning, Hang Seng is up a percent, Shanghai is marginally in the red while Nikkei is down a percent. GIFT Nifty is suggesting around 50 points higher start for our market.

 

In Friday's report we had said that 25078, the top made on 1st August, was the next upside level to eye for Nifty while 24550 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty ended flat at 24823.

 

25078, the top made on 1st August, is the next upside level to eye for Nifty; On the way down, 24550, around which 20 as well as 34-DMAs are placed, is the important immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 34-DMA, placed around 51300, is the immediate hurdle, upon crossover of which, 51943 and 52565, the 61.8% and 78.6% retracement levels of the entire 53357-49654 fall, would be next upside levels to eye. On the way down, 50300 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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