TRAIL STOP-LOSS TO 24700

 

TRAIL STOP-LOSS TO 24700

 

WORLD MARKETS

 

Nasdaq and S & P 500 surged 2.6% and 1.6% respectively, posting their best session since February, while Dow rose quarter of a percent as Fed Chair Powell pointed to possible September rate cut.

 

Federal Reserve kept interest rates unchanged and pointed to “some further progress” toward bringing inflation down to the central banks 2% goal. During a press conference following the decision, Powell also said that an interest rate cut could be on the table as early as September if inflation moves down in line with expectations, growth remains reasonably strong and the labor market remains as it is.

 

U.S. 10-year treasury yield tumbled 11 bps to 4.033%. Dollar index slipped 0.4% to 104.02. Gold jumped 1.6% to $2448 per ounce.

 

The Japanese yen hit a four-month high against the dollar after the Bank of Japan raised rates to the highest since 2008 and indicated that more hikes may follow.

 

Oil jumped after Hamas political leader Ismail Haniyeh was assassinated in Tehran, Iran, renewing fears that the Middle East is teetering on the brink of a regional war. WTI crude futures rose 4% to $77.76 while Brent futures rose 2.7% to $80.74 per barrel.

 

European markets gained 0.5%-1.1%. Eurozone inflation rose to 2.6% in July from 2.5% in June.

 

AT HOME

 

Benchmark indices rose four tenth of a percent to post highest ever close. Sensex settled at 81741, up 285 points while Nifty added 93 points to finish at 24951. Nifty mid-cap index rose 0.6% while small-cap index fell 0.4%.  Nifty Metal index climbed 1.2%, becoming top gainer among the sectoral indices, followed by 1.1% higher Pharma and Media indices. PSU Bank and Realty indices were the top losers, down 0.4% each.

 

FII s net sold stocks, index futures and stock futures worth Rs 3462 cr, 1267 cr and 640 cr respectively. DIIs were net buyers to the tune of Rs 3367 cr.

 

Rupee appreciated 1 paise to end at 83.72/$.

 

Tata Steel's Q1 results were largely in-line with estimates. Europe performance improved while net debt rose sequentially on higher working capital requirement. Coal India was a good set.

 

OUTLOOK

 

Today morning, Nikkei is down more than 3%, Hang Seng is marginally in the red while Shanghai is up 0.2%. GIFT Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 25400 followed by 25600, continued to be next upside targets to eye for Nifty while 24500 continued to be immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty rose to touch a high of 24985 before closing at 24951 and is set to open near 25000 today.

 

25400 followed by 25600, continue to be next upside targets to eye for Nifty; 24750-24700 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 52340, the top made on Monday, continues to be immediate hurdle, upon crossover of which, 52700-52800 would be next target area; 51150, 50850 are the support levels to eye.

 

ITC, Tata Motors, Sun Pharma and Adani Enterprise will report their quarterly earnings today.

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