STAY LONG WITH THE STOP-LOSS OF 24300

 

STAY LONG WITH THE STOP-LOSS OF 24300

 

WORLD MARKETS

 

U.S. indices gained a fifth of a percent each on Friday.

 

U.S. single-family homebuilding fell in July as higher mortgage rates and house prices kept prospective buyers on the sidelines.

 

U.S. 10-year treasury yield fell 3 bps to 3.884%. Dollar index fell 0.6% to 102.40. Gold surged 2% to $2507 per ounce.

 

WTI crude futures fell 1.9% to $76.65 while Brent futures fell 1.7% to $79.68 per barrel.

 

In Europe, DAX and CAC gained 0.8% and 0.4% respectively while FTSE fell 0.4%. U.K. retail sales showed a rebound from a 0.9% decline in June to 0.5% growth in July, in line with expectations

 

For the week, the S&P 500 added nearly 3.9%, its best week since November 2023. The Nasdaq gained 5.2%, while the 30-stock Dow advanced 2.9% on the week. Dollar index fell 0.7%, extending the losing streak to fourth straight week. Gold surged 3.1%.

 

AT HOME

 

Benchmark indices surged 1.7% each, posting their best day since 7th June and 26th July respectively and closing at the highest level after 2nd August. Sensex settled at 80436, up 1330 points while Nifty added 397 points to finish at 24541. Nifty mid-cap and small-cap indices jumped 2% each. All the NSE sectoral indices ended higher, with IT and Realty indices on the top, up 2.9% and 2.5% respectively.

 

Rupee appreciated 1 paise to end at 83.94/$.

 

For the week, Sensex and Nifty gained 0.9% and 0.7% respectively, snapping a 2-week losing streak.

 

OUTLOOK

 

Today morning, Hang Seng is up 0.8%, Shanghai is little changed while Nikkei is down 0.3%. GIFT Nifty is suggesting around 70 points higher start for our market.

 

In Friday's report we had said that 20-DMA, placed around 24500, continued to be immediate hurdle while 23893, the bottom made the previous week, continued to be important immediate support.

 

Nifty crossed 24500 and surged all the way to 24563 before closing at 24541.

 

For Nifty, 24825, the 78.6% retracement level of the recent 25078-23893 fall, is the next upside target, above which, 25078, the top made on 1st August, would be the next upside level to eye; 24300 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 20 and 34-DMAs, placed around 50900 and 51500 respectively, are the next upside levels to eye. 49650 is where a "double bottom" is in place, making it an important immediate support, upon breach of which, 34-week moving average, placed around 48700, would be next important support to eye.

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