NIFTY ACHIEVES 24825; TRAIL STOP-LOSS TO 24550

 

NIFTY ACHIEVES 24825; TRAIL STOP-LOSS TO 24550

 

WORLD MARKETS

 

U.S. indices fell 0.4%-1.7%, with Nasdaq losing the most, ahead of U.S. Federal Reserve chairman Jerome Powell’s comments at Jackson Hole.

 

Number of Americans filing new applications for unemployment benefits rose in the latest week, but the level still suggested a gradual cooling of the labor market remains intact.

 

U.S. 10-year treasury yield rose 5 bps to 3.856%. Dollar index rose 0.4% 101.52. Gold fell 1.2% to $2482 per ounce. Sterling hit a 13-month high against the dollar following a report showing that British business activity accelerated this month and cost pressures eased to their weakest in over three years.

 

WTI and Brent crude futures rose 1.5% each to $73.01 and $77.22 per barrel respectively.

 

In Europe, Dax rose quarter of a percent, FTSE inched up 0.1% while CAC was flat. Euro zone business activity showed surprising strength in August despite firms raising prices, while euro zone negotiated wage growth slowed last quarter.

 

Minutes from the ECB’s last meeting showed that policymakers were in no rush to cut rates in July but that they saw September as the next best opportunity to consider a further easing.

 

AT HOME

 

Benchmark indices rose a fifth of a percent each, with Nifty extending the winning streak to sixth straight session. Sensex settled at 81053, up 147 points while Nifty added 41 points to finish at 24811. Nifty mid-cap and small-cap indices gained 0.7% and 0.2% respectively. Nifty Consumer Durables and Metal indices were the top gainers among the sectoral indices, up 0.9% and 0.7% respectively while Oil & Gas and Media were the top losers, down 0.2% each.

 

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 depreciated 2 paise to end at 83.94/$.

 

OUTLOOK

 

Data from Japan showed the country’s headline inflation at 2.8% in July, unchanged from the previous month.

 

Today morning, Asian markets are trading with cuts of upto half a percent and GIFT Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 24825, the 78.6% retracement level of the recent 25078-23893 fall, continues to be next target, above which, 25078, the top made on 1st August, would be the next upside level to eye. We had advised trailing stop-loss in longs to 24530.

 

Nifty, after touching a high of 24867, eased to end at 24811.

 

25078, the top made on 1st August, is the next upside level to eye for Nifty; 24550 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 34-DMA, placed around 51350, is the next upside levels to eye; 50250 is the immediate support, with the stop-loss of which, trading longs can be held on to.

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