STAY LONG WITH THE STOP-LOSS OF 25000

 

STAY LONG WITH THE STOP-LOSS OF 25000

 

WORLD MARKETS

 

U.S. indices gained 0.6%-1% with the S & P 500 and Nasdaq rising for the fourth straight session.

 

U.S. August producer price index rose 0.2% month on month, in line with expectations. On a year-on-year basis, headline PPI rose 1.7%. Initial jobless claims rose 2,000 to a seasonally adjusted 230,000 for the week ended Sept. 7, in line with expectations.

 

U.S. 10-year treasury yield rose 2 bps to 3.678%. Dollar index fell half a percent to 101.23. Gold surged 1.9% to $2558 per ounce.

 

WTI crude futures rose 2.5% to $68.97 while Brent futures rose 1.9% to $71.97 per barrel.

 

European markets gained 0.6%-1.1%. ECB eased again by 25 basis points amid slowing inflation and economic growth.

 

AT HOME

 

After trading in a narrow range, benchmark indices spiked up in late noon session to end higher by nearly 2%, hitting fresh record highs and posting their best day since 7th June. Sensex settled at 82962, up 1439 points while Nifty added 470 points to finish at 25388. Nifty mid-cap and small-cap indices climbed 1.2% and 1% respectively. All the NSE sectoral indices ended higher, with Metal and Auto indices being the top gainers, up 2.9% and 2.1% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 7695 cr, 2580 cr and 15024 cr respectively. DIIs were net sellers to the tune of Rs 1801 cr.

 

Rupee appreciated 1 paise to end at 83.97/$.

 

India's August consumer price index rose 3.65% y-o-y, rising from a five-year low. This was above July’s revised figure of 3.6% and also beat expectations of 3.5%. July IIP growth came in at 4.8%, up marginally from 4.7% in June 2024.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 1.6% and 0.3% respectively while Nikkei is down 0.6%. GIFT Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 25130, the top made Tuesday, continued to be immediate hurdle, a crossover of which was required for a fresh upmove.

 

Nifty crossed 25130 and surged all the way to 25433 before closing at 25388.

 

25433, the top made yesterday, roughly coincided with a rising trendline adjoining tops made on 26th August and 2nd September and hence is the immediate resistance to eye. Above it, 25800-25900 would be next big target area; 25000 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 51943, the 61.8% retracement level of the 53357-49655 fall, is the immediate hurdle, upon crossover of which, 52565, the 78.6% retracement level of the fall, would be next upside target to eye; 51000 is the immediate support, with the stop-loss of which, trading longs can be held on to.

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