TRAIL STOP-LOSS TO 17350

 

TRAIL STOP-LOSS TO 17350

 

WORLD MARKETS

 

US indices fell 0.2%-1.2% with Nasdaq leading the losses on the back of a batch of disappointing company reports ahead of a key inflation reading.

 

On Monday, weaker-than-expected revenue guidance from Nvidia weighed on the chip stocks, and those stocks extended their losses yesterday. Yesterday, chipmaker Micron warned that revenue may fall short of its prior guidance because of “macroeconomic factors and supply chain constraints.”

 

Preliminary second-quarter productivity figures came in slightly better than expected, but still showed a decline of 4.6%. Unit labor costs grew at an annualized rate of 10.8%, above the 9.5% expected.

 

US 10-year treasury yield rose 1 bps to 2.779%. Dollar index was little changed at 106.30. Spot gold was 0.4% higher at $1,795 per ounce.

 

Brent crude settled at $96.31 a barrel, losing 34 cents, or 0.4% and WTI crude settled at $90.50 a barrel, shedding 26 cents, or 0.3%.

 

In Europe, FTSE was flat while DAX and CAC fell 1.1% and 0.5% respectively. U.K. retail sales rose 1.6% in July.

 

AT HOME

 

Sensex and Nifty climbed 0.7% and 0.8% respectively to close in green for the eighth session in past nine. Sensex settled at 58853, up 465 points while Nifty added 127 points to finish at 17525. Nifty mid-cap and small-cap indices rose nearly a third of a percent each. Except a marginally lower Oil & Gas index, all the BSE sectoral indices ended higher, with Capital Goods and Power indices leading the tally, up 2% and 1.9% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1450 cr, 138 cr and 437 cr respectively. DIIs were net sellers to the tune of Rs 141 cr.

 

Rupee depreciated 43 paise to end at 79.66/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down half a percent each while Shanghai is marginally higher. SGX Nifty is suggesting around 40 points lower start for our market today.

 

In Monday's report we had said that 17490, the top made last week, was the immediate hurdle, upon crossover of which, 17725, around which a trendline adjoining tops made in January and April is placed, would be the next target. We had also advised holding on to long positions with the stop-loss of 17161.

 

Nifty crossed 17490 and surged all the way to 17548 before closing at 17525.

 

17725, around which a trendline adjoining tops made in January and April is placed, is the next target to eye; Immediate support on the hourly chart has moved up to 17350, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 38637, the 67% retracement level of the entire 41830-32155 fall, is the next upside levels to eye; 37700 is immediate support.

 

Hindalco, Eicher Motors and Tata Consumer will report their quarterly earnings today.

 

17490-17161 IS THE IMMEDIATE RANGE

 

17490-17161 IS THE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow inched up 0.2% while S & P 500 and Nasdaq fell 0.2% and 0.5% respectively as markets assessed strong jobs report and its implication for the Federal Reserve’s rate tightening campaign.

 

US economy added 528,000 jobs in July, beating estimate of a 258,000 increase by a wide margin. The unemployment rate ticked down to 3.5%, below the 3.6% estimate. Wage growth also rose more than estimated, up 0.5% for the month and 5.2% y-o-y, signaling that high inflation is likely still a problem.

 

US 10-year treasury yield jumped 14 bps to 2.832%. Dollar index rose 0.8% to 106.58. Gold fell 0.9% to $1774 per ounce.

 

Brent crude finished the day 0.8% higher at $94.92 per barrel and WTI crude settled 0.5% higher at $89.01 per barrel.

 

In Europe, FTSE eased 0.1% while DAX and CAC fell 0.6% each. French industrial output unexpectedly rose 1.4% month-on-month in June, despite forecasts for a 0.2% contraction amid persistent supply chain problems and the energy crisis.

 

For the week, Dow fell 0.1% while S & P 500 and Nasdaq rose 0.4% and 2.2% respectively. European markets gained 0.2%-0.7%. In Asia, Nifty and Nikkei rose 1.4% and 0.8% respectively but Shanghai and Hang Seng fell 1.1% and 0.2% respectively. Brent and WTI crude nosedived 9% and 10% respectively, hitting their lowest levels after mid-Feb. US 10-year treasury yield rose 18 bps to 2.832%, snapping 3-week losing streak. Dollar index rose 0.7% to 106.58, snapping 2-week losing streak.

 

AT HOME

 

It was a day of consolidation as benchmark indices ended marginally higher after a rangebound but choppy session. Sensex settled at 58387, up 89 points while Nifty added 15 points to finish at 17397. Nifty mid-cap index rose 0.2% but small-cap index eased 0.1%. BSE Telecom and Basic Materials indices gained 1.3% and 0.9% respectively, becoming top gainers among the sectoral indices while Utilities and Power indices were the top losers, down 1.9% and 1.6% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1606 cr, 902 cr and 851 cr respectively. DIIs were net sellers to the tune of Rs 496 cr.

 

Rupee appreciated 23 paise to end at 79.24/$.

 

Monetary Policy Committee voted unanimously to hike repo rate by 50 bps to 5.4%. RBI maintained FY23 CPI inflation forecast at 6.7% and FY23 GDP growth estimate at 7.2%.

 

For the week, Sensex and Nifty gained 1.4% each, extending the winning streak to third consecutive week.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are little changed while Hang Seng is down nearly a percent. SGX Nifty is suggesting around 40 points lower start for our market.

 

In Friday's report we had said that 17490, the top made Thursday, was the immediate hurdle, while 17161, the low made Thursday, was the immediate support.

 

Nifty, after touching a high of 17474, eased to end at 17397.

 

17490, the top made last week, continues to be immediate hurdle, upon crossover of which, 17725, around which a trendline adjoining tops made in January and April is placed, would be the next target; 17161, the low made Thursday, continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 38637, the 67% retracement level of the entire 41830-32155 fall, is the next upside levels to eye; 37249, the low made last week, is the immediate support, with the stop-loss of which, trading longs  can be held on to.

 

17490 IS THE IMMEDIATE HURDLE; 17161 IMMEDIATE SUPPORT

 

17490 IS THE IMMEDIATE HURDLE; 17161 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.3% and 0.1% respectively while Nasdaq rose 0.4%. Markets are awaiting Friday’s July jobs report, which will give the latest snapshot on the labor market and the health of the economy.

 

China fired multiple missiles near Taiwan in its biggest ever military drills in the Taiwan Strait. Japan Defense Minister said Chinese missiles landed in Japan’s exclusive economic zone and called the military drills a “serious problem,”

 

US initial jobless claims rose to 260,000 for the week ended July 30, in line with estimates. U.S. trade deficit narrowed sharply in June as exports surged to a record high.

 

US 10-year treasury yield fell around 2 bps to 2.69%. Dollar index fell 0.6% to 105.75. Spot gold jumped 1.4% to $1790 per ounce.

 

Brent crude futures ended the day 2.75% lower at $94.12 a barrel and WTI crude futures settled 2.3% lower at $88.54 per barrel.

 

In Europe, FTSE was flat while DAX and CAC gained 0.6% each. The Bank of England hiked interest rates by 50 bps, its largest single increase since 1995.

 

AT HOME

 

Benchmark indices ended marginally in the red after wild intraday swings, snapping 6-day winning streak. Sensex settled at 58298, down 51 points while Nifty lost 6 points to finish at 17382. Nifty mid-cap index rose 0.6% but small-cap index fell 0.4%. BSE Healthcare and IT indices were the top gainers among the sectoral indices, rising 1.9% and 1.2% respectively. Telecom and Realty indices were the top loser, down 1.1% each.

 

FIIs net bought stocks and stock futures worth Rs 1475 cr and 702 cr respectively but net sold index futures worth Rs 830 cr. DIIs were net sellers to the tune of Rs 47 cr.

 

Rupee depreciated 30 paise to end at 79.46/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-0.6% and SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 17487, the 78.6% retracement level of the 18115-15183 fall, continued to be upside level to eye, and had advised trailing the stop-loss in long positions to 17200.

 

Nifty, after touching a high of 17490, reversed and plunged all the way to 17161, but rebounded from there to end at 17382.

 

17490, the top made yesterday, is the immediate hurdle, upon crossover of which, 17750, around which a trendline adjoining tops made in January and April is placed, would be the next target; 17161, the low made yesterday, is the immediate support, below which, 200-DMA, placed around 17000, would be next downside level to eye.

 

For Banknifty, 38232, the top made yesterday, is the immediate hurdle, upon crossover of which, 38637, the 67% retracement levels of the entire 41830-32155 fall, would the next upside levels to eye; 37250, the low made yesterday, is the immediate support, upon breach of which, 37000-36800 would be next support area.

 

RBI's MPC will announce it's interest rate decision today and is expected to hike repo rate by 35-50 bps. As usual markets will watch out for commentary for cues to future rate trajectory.

 

M & M and Titan will report their quarterly earnings today.

 

TRAIL STOP-LOSS TO 17200

 

TRAIL STOP-LOSS TO 17200

 

WORLD MARKETS

 

US indices soared 1.3%-2.6% to reverse two-day slide, as better-than-expected economic data helped allay recession fears.

 

A surprise rebound in July services PMI helped shake off worries that the U.S. has already fallen into a recession. Data on durable goods orders and manufacturing in June were also better than expected.

 

St. Louis Federal Reserve President James Bullard said he doesn’t think the U.S. is currently in a recession, and that rate hikes to tame high inflation will continue.

 

US 10-year treasury yield, after making an intraday high of 2.849%, reversed to end 5 bps lower at 2.706%. Dollar index was flattish at 106.38. Gold rose 0.3% to $1765 per ounce.

 

Oil fell after U.S. data showed crude and gasoline stockpiles unexpectedly surged last week and as OPEC+ said it would raise its oil output target by 100,000 barrels per day. Brent crude futures settled down $3.76, or 3.7%, at $96.78 a barrel and WTI crude futures fell $3.76, or 4%, to $90.66.

 

European markets rose 0.5%-1%.  Euro zone retail sales dropped by more than expected in June, falling 1.2% month-on-month for a 3.7% y-o-y decline.

 

AT HOME

 

After falling more than half a percent in the morning, Sensex and Nifty surged in noon trade to end higher by 0.4% and 0.25% respectively, extending the winning streak to sixth straight day. Sensex settled at 58350, up 214 points while Nifty added 42 points to finish at 17388. Nifty mid-cap and small-cap indices however fell 0.7% and 0.5% respectively, snapping 5-session winning streak. BSE IT and Teck indices were the top gainers among the sectoral indices, up 1.3% and 1.1% respectively while Telecom index was the top loser, down 1.3%, followed by 0.8% lower Capital Goods and Auto indices.

 

FIIs net bought stocks worth Rs 765 cr but net sold index futures and stock futures worth Rs 575 cr and 967 cr respectively. DIIs were net sellers to the tune of Rs 518 cr.

 

Rupee depreciated 45 paise to end at 79.16/$.

 

India's July services PMI stood at 55.5, down from 59.2 month-on-month and marking the lowest level in 4 months. Composite PMI fell to 56.6 from 58.2.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-1.8% and SGX Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that 17487, the 78.6% retracement level of the 18115-15183 fall, was the next upside level to eye, and had advised raising the stop-loss in long positions to 17025.

 

Nifty, after touching a low of 17225, rebounded to end at 17388 and is set to open near 17450 today.

 

17487, the 78.6% retracement level of the 18115-15183 fall, continues to be upside level to eye, upon crossover of which, 17750, around which a trendline adjoining tops made in January and April is placed, would be the next target; Immediate support on the hourly chart has moved up to 17200, with the stop-loss of which, trading longs can be held on to.

 

In case of Banknifty, 38637, the 67% retracement levels of the entire 41830-32155 fall, is the next upside levels to eye; 37400 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

TRAIL STOP-LOSS TO 17025

 

TRAIL STOP-LOSS TO 17025

 

WORLD MARKETS

 

Dow tumbled 1.2% while S & P 500 and Nasdaq fell 0.7% and 0.2% respectively, as House Speaker Nancy Pelosi’s Taiwan visit increased tensions between the U.S. and China. Markets also reacted to multiple comments from regional Fed presidents who all threw cold water on the idea that the central bank will be done raising rates or move them lower anytime soon.

 

US 10-year treasury yield jumped nearly 18 bps to 2.752%. Dollar index jumped 0.9% to 106.34. Spot gold fell 0.6 to $1760 per ounce.

 

Brent futures rose 51 cents, or 0.5%, to settle at $100.54 a barrel, while WTI crude rose 53 cents, or 0.6%, to $94.42.

 

European markets fell between 0.1%-0.4%.

 

AT HOME

 

After falling seven tenth of a percent in the first hour, benchmark indices recouped all the losses through the session to end marginally higher. Sensex settled at 58136, up 20 points while Nifty added 5 points to finish at 17345. Nifty mid-cap and small-cap indices gained 0.3% and 0.7% respectively. BSE Power and Utilities indices climbed 2% and 1.8% respectively, becoming top gainers among the sectoral indices, while Realty index tumbled 1.7%, becoming top loser, followed by half a percent lower IT and Teck indices.

 

FIIs net bought stocks and stock futures worth Rs 825 cr and 74 cr respectively but net sold index futures worth Rs 2727 cr. DIIs were net buyers to the tune of Rs 118 cr.

 

Rupee appreciated 31 paise to end at 78.71/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.5%-1% and SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 17377-17414, where two tops made in late April are placed, continued to be the next target zone, and had advised trailing stop-loss in long positions to 16900.

 

Nifty, after touching a low of 17215, reversed and surged all the way to 17390 before closing at 17345.

 

17487, the 78.6% retracement level of the 18115-15183 fall, is the next upside level to eye, upon crossover of which, 17750, around which a trendline adjoining tops made in January and April is placed, would be the next target; Immediate support on the hourly chart has moved up to 17025, with the stop-loss of which, trading longs can be held on to.

 

In case of Banknifty, 38637, the 67% retracement levels of the entire 41830-32155 fall, is the next upside levels to eye; 37400 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

TRAIL STOP-LOSS TO 16900

 

TRAIL STOP-LOSS TO 16900

 

WORLD MARKETS

 

US indices fell 0.1%-0.3%, snapping 3-day winning streak.

 

US 10-year treasury yield fell 7 bps to 2.577%. Dollar index fell 0.4% to 105.41. Spot gold rose 0.4% to $1,772 per ounce.

 

Oil prices dropped sharply as weak manufacturing data from China and Europe weighed on the demand outlook. Brent crude futures settled $3.94, or 3.79%, lower at $100.03 per barrel and WTI crude ended the day at $93.89 per barrel, for a loss of 4.8% or $4.73.

 

European markets ended marginally lower.  Euro zone manufacturing activity contracted in July, S&P Global’s final manufacturing PMI revealed.

 

AT HOME

 

Benchmark indices surged one percent each, extending the winning streak to fourth consecutive day and closing at the highest level after 13th April and 21st April respectively. Sensex settled at 58115, up 545 points while Nifty added 182 points to finish at 17340. Nifty mid-cap and small-cap indices climbed 1.7% and 1.8% respectively. All the BSE sectoral indices ended higher, with Power and Utilities indices on the top, up 3.4% each.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2321 cr, 2095 cr and 597 cr respectively. DIIs were net sellers to the tune of Rs 822 cr.

 

Rupee appreciated 23 paise to end at 79.02/$.

 

India's July manufacturing PMI rose to 56.4 from 53.9 month-on-month.

 

GST collection remained above Rs. 1.4 lk cr for 5th straight month with July monthly collections coming in at Rs 1.49 lk cr, up 28% against the same month last year.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 1.4%-2.4% and SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 17377-17414, where two tops made in late April are placed, continues to be the next target zone and had advised holding on to long positions with the stop-loss of 16750.

 

Nifty soared to touch a high of 17356 before closing at 17340.

 

17377-17414, where two tops made in late April are placed, continues to be the next target zone, upon crossover of which, 17750, around which a trendline adjoining tops made in January and April is placed, would be the next target. ; Immediate support on the hourly chart has moved up to 16900, with the stop-loss of which, trading longs can be held on to.

 

In case of Banknifty, 38134 and 38637, the 61.8% and 67% retracement levels of the entire 41830-32155 fall, are the next upside levels to eye; 37150 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

17377-17414 IS THE NEXT TARGET ZONE; TRAIL STOP-LOSS TO 16750

 

17377-17414 IS THE NEXT TARGET ZONE; TRAIL STOP-LOSS TO 16750

 

WORLD MARKETS

 

US indices rose 1%-1.9% on Friday, extending the winning streak to third consecutive day, after digesting strong tech earnings and looking past concerns about high inflation and a recessionary environment.

 

June’s personal consumption expenditures index climbed 6.8% y-o-y, hitting its highest level since January 1982. Final reading of the University of Michigan Consumer Sentiment Index came in at 51.5 for July, a slight improvement over the preliminary reading and up from the June all-time low of 50.

 

Amazon surged 10.4% after the e-commerce giant reported stronger-than-expected sales, while Apple climbed 3.2% after posting better-than-expected iPhone revenue. Chevron and Exxon Mobil climbed 8.9% and 4.6%, respectively, following better-than-anticipated results.

 

The yield on the benchmark 10-year Treasury note traded 2 basis points lower at 2.658%. Dollar index fell 0.4% to 105.82. Spot gold rose 0.4% to $1,761.59 per ounce.

 

Brent October future rose $2.30 to $104.13 and WTI crude futures advanced 3.4% to $99.67 as attention turned to next week’s OPEC+ meeting and expectations that it will dash U.S. hopes for a supply boost.

 

European markets gained 1.1%-2.2%. Second quarter Eurozone GDP growth came in at 0.7%, exceeding expectations for growth of 0.2%.

 

For the week, US indices gained 3%-4.7%. European markets rose 1.7%-3.7%. In Asia, Nifty and Nikkei rose 2.6% and 0.3% respectively but Hang Seng and Shanghai fell 1.9% and 0.3% respectively.

 

AT HOME

 

Sensex and Nifty surged 1.25% and 1.35% respectively, extending the winning streak to third straight day and closing at the highest level after 21st April and 28th April respectively. Sensex settled at 57570, up 712 points while Nifty added 228 points to finish at 17158. Nifty mid-cap and small-cap indices climbed 1.4% and 1.7% respectively. All the BSE sectoral indices ended in green, with Metal index on the top, up 4.6%, followed by 2.4% higher Energy index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1046 cr, 806 cr and 183 cr respectively. DIIs were net sellers to the tune of Rs 1 cr.

 

Rupee appreciated 51 paise to end at 79.25/$.

 

For the week, Sensex and Nifty gained 2.7% and 2.6% respectively, extending last week's mammoth upmove. Over the weekend, China’s official PMI for July came in at 49, down from 50.2 in June and lower than the expected 50.4.

 

OUTLOOK

 

Today morning, Nikkei is up 0.3% but Hang Seng and Shanghai are down 1% and 0.5% respectively. SGX Nifty is suggesting around 50 points higher start for our market.

 

In Friday's report we had said that 17377-17414, where two tops made in late April are placed, would be the next target zone and had advised holding on to long positions with the stop-loss of 16650.

 

Nifty touched a high of 17172 before closing at 17158.

 

17377-17414, where two tops made in late April are placed, continues to be the next target zone; Immediate support on the hourly chart has moved up to 16750, with the stop-loss of which, trading longs can be held on to.

 

ITC and UPL will report their quarterly earnings today.