17500 IS THE NEXT SUPPORT; 17992 IMMEDIATE HURDLE

 

17500 IS THE NEXT SUPPORT; 17992 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices nosedived 0.9%-2% as minutes from the Federal Reserve’s July meeting and comments from St. Louis Federal Reserve President James Bullard indicated that the central bank would likely continue hiking rates in the near term.

 

US 10-year treasury yield rose 9 bps to 2.976%. Dollar index jumped 0.6% to 108.10, its highest since July 15. Gold fell 0.7% to $1747 per ounce, extending the losing streak to fifth consecutive session.

 

Brent crude futures settled rose 13 cents to $96.72 a barrel and WTI crude ended 27 cents higher at $90.77.

 

In Europe, FTSE was falt while DAX and CAC fell 1.1% and 0.9% respectively.

 

Japan’s July headline inflation rose to 2.6% from 2.4% in June. That was above expectations of 2.2% and higher than the Bank of Japan’s goal of 2.0%.

 

For the week, Dow eased 0.2% while S & P 500 and Nasdaq fell 1.2% and 2.6% respectively. In Europe, FTSE rose 0.7% but DAX and CAC fell 1.8% and 0.9% respectively. In Asia, Nikkei and Nifty rose 1.3% and 0.3% respectively but Hang Seng and Shanghai dipped 2% and 0.6% respectively.

 

AT HOME

 

Benchmark indices plunged 1.1% each, suffering the worst cut since 22nd June and with Nifty snapping 8-session winning streak. Sensex settled at 59646, down 651 points while Nifty lost 198 points to finish at 17758. Nifty mid-cap and small-cap indices tumbled 1.4% and 1.2% respectively. BSE Realty and Metal indices tumbled 2.1% and 1.8% respectively, becoming top losers among sectoral indices, while Power and Utilities indices were the top gainers, up 0.5% and 0.4% respectively.

 

FIIs net bought stocks worth Rs 1111 cr but net sold index futures and stock futures worth Rs 1647 cr and 1358 cr respectively. DIIs were net sellers to the tune of Rs 1633 cr.

 

Rupee depreciated 10 paise to end at 79.77/$.

 

For the week, Sensex and Nifty rose 0.3% each, extending the winning streak to fifth consecutive week.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 0.6% and 0.9% while Shanghai is marginally higher. SGX Nifty is suggesting around 90 points lower start for our market.

 

In Friday's report we had said that 18115, the top made in April, continued to be next upside level to eye while 17700 continued to be immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 17992, plunged to 17710 before closing at 17758 and is set to open below 17700 today.

 

17500, around which a trendline adjoining bottoms made on 14th July and 27th July is placed, is be the next downside level to eye; 17992, the top made on Friday, is the immediate hurdle. Trading longs should be cut and shorts can be initiated with the stop-loss of 17992.

 

38200 is the downside level to eye for Banknifty; 39759, the top made Friday, is the immediate hurdle.

 

18115 IS NEXT TARGET; 17700 IMMEDIATE SUPPORT

 

18115 IS NEXT TARGET; 17700 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices rose 0.1%-0.2%.

 

US 10-year treasury yield eased 1.5 bps to 2.886%. Dollar index jumped 0.8% to 107.49. Gold inched 0.1% lower to $1759 per ounce.

 

Initial jobless claims fell 2000 to 250,000 for the week ended Aug. 13 and the prior period’s data was revised sharply lower. Existing home sales dropped nearly 6% in July.

 

European markets gained 0.4%-0.5%.  July’s final inflation print confirmed that annual consumer price increases across the 19-member currency bloc hit a record high 8.9%.

 

AT HOME

 

After falling half a percent in the morning, benchmark indices recouped all the losses in noon to end marginally higher. Sensex settled at 60298, up 38 points while Nifty added 12 points to finish at 17956. Nifty mid-cap and small-cap indices gained 0.2% each. BSE Realty and Utilities indices gained the most among the sectoral indices, up 1.8% and 1.1% respectively while Oil & Gas IT indices were the top losers, down 0.8% each.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1706 cr, 1652 cr and 1431 cr respectively. DIIs were net buyers to the tune of Rs 471 cr.

 

Rupee depreciated 23 paise to end at 79.67/$.

 

OUTLOOK

Today morning, Hang Seng is up 0.3% while Nikkei and Shanghai are up 0.1% each. SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that 18115, the top made in April, is the next upside level to eye and had advised trailing stop-loss in longs to 17700.

 

Nifty, after touching a low of 17852, rebounded to end at 17956.

 

18115, the top made in April, continues to be next upside level to eye; 17700 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 39760, the 78.6% retracement level of the entire 41830-34018 fall, followed by 40160, the top made in November 2021, are the upside levels to eye; 39200 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

 

TRAIL STOP-LOSS TO 17700

 

TRAIL STOP-LOSS TO 17700

 

WORLD MARKETS

 

US indices fell 0.5%-1.25%, with the Dow snapping 5-day winning streak, after digesting minutes of the latest Fed meeting.

 

Minutes showed that the central bank would continue its aggressive hiking campaign until it can tame inflation. At the same time, the Fed also indicated that it could soon slow the speed of its tightening, while also acknowledging the state of the economy and risk to the downside for gross domestic product growth.

 

Retail sales for July were flat, compared with the estimate for a 0.1% gain.

Excluding autos, sales increased 0.4% against expectations for no gain.

 

US 10-year treasury yield rose 9 bps to 2.90%. Dollar index inched up 0.2% to 106.67. Gold fell 0.8% to $1761 per ounce.

 

Brent crude settled $1.31, or 1.42% higher at $93.65 per barrel and WTI crude rose $1.58, or 1.8%, to $88.11 per barrel.

 

European markets fell 0.3%-2%.

 

AT HOME

 

Benchmark indices rose seven tenth of a percent each to close at the highest level in nearly 4-1/2 months. Sensex settled at 60260, up 418 points while Nifty added 119 points to finish at 17944. Nifty extended the winning streak to seventh consecutive session. Nifty mid-cap and small-cap indices gained half a percent each. Except 0.3% and 0.1% lower Auto and Capital Goods indices respectively, all the BSE sectoral indices ended in green, with Telecom index on the top, up 1.8%, followed by 1.1% higher Teck and Consumer Durables indices.

 

FIIs net bought stocks and index futures worth Rs 2347 cr and 7 cr respectively but net sold stock futures worth Rs 1030 cr. DIIs were net sellers to the tune of Rs 510 cr.

 

Rupee appreciated 21 paise to end at 79.44/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-1% and SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 17850-17900, continued to be next target area, above which 18115, the top made in April, would be the next target. We had also advised trailing stop-loss in longs to 17575.

 

Nifty soared to touch a high of 17965 before closing at 17944.

 

18115, the top made in April, is the next upside level to eye; Immediate support on the hourly chart has moved up to 17700, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 39760, the 78.6% retracement level of the entire 41830-34018 fall, followed by 40160, the top made in November 2021, are the upside levels to eye; 38900 is the immediate support, with the stop-loss of which, trading longs can be held on to.

STAY LONG WITH THE STOP-LOSS OF 17575

 

STAY LONG WITH THE STOP-LOSS OF 17575

 

WORLD MARKETS

 

Dow and S & P 500 rose 0.7% and 0.2% respectively thanks to a boost from Walmart and Home Depot while Nasdaq ended lower by 0.2%.

 

Walmart reiterated its second-half outlook and Home Depot maintained its 2022 guidance.

 

Housing starts declined 9.6% in June, well above the expected 2.5% drop expected. Building permits slipped 1.3% but beat estimates. Industrial production rose more than expected in July.

 

US 10-year treasury yield rose 2 bps to 2.806%. Dollar index was flat at 106.48. Gold eased 0.2% to $1776 per ounce.

 

Brent as well as WTI crude futures ended the day 0.9% lower at $92.61 and $87.10 per barrel respectively.

 

In Europe, FTSE and CAC rose a third of a percent each while DAX gained 0.7%.

 

AT HOME

 

Sensex and Nifty gained 0.6% and 0.7% respectively to close at the highest level after 5th April and with Nifty extending the winning streak to sixth consecutive day. Sensex settled at 59842, up 379 points while Nifty added 127 points to finish at 17825. Nifty mid-cap and small-cap indices climbed 1.4% and 1% respectively. Except 0.2% lower Telecom and Metal indices, all the BSE sectoral indices ended higher, with Auto and Realty indices leading the tally, up 2.6% and 2% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1377 cr, 225 cr and 1314 cr respectively. DIIs were net sellers to the tune of Rs 136 cr.

 

India's July WPI inflation eased to 13.93% from 15.18% in the previous month.

 

OUTLOOK

 

Today morning, Nikkei is up 0.8% while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 17850-17900 is the next target area and had advised trailing stop-loss in longs to 17550.

 

Nifty touched a high of 17839 before closing at 17825.

 

17850-17900, around which a trendline adjoining tops made in October 2021 and January 2022 is placed, continues to be upside zone to eye; Once this hurdle is taken out, 18115, the top made in April, would be the next target. 17575 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

39760, the 78.6% retracement level of the entire 41830-34018 fall, is the next target for Banknifty; 38500 is the immediate support, with the stop-loss of which, trading longs can be held on to.

TRAIL STOP-LOSS TO 17550

 

TRAIL STOP-LOSS TO 17550

 

WORLD MARKETS

 

On Friday US indices surged 1.3%-2.1%, with the S & P 500 and Nasdaq notching their fourth straight positive week, on signs that inflation may be peaking. Yesterday, US indices gained 0.4%-0.6%.

 

US 10-year Treasury yield fell 5 bps to 2.799%. Dollar index climbed 0.8% to 106.49. Spot gold fell 1.3% to $1,779 per ounce,

 

Brent crude futures ended the day 3.1% lower at $95.10 per barrel and WTI crude settled 2.9% lower at $89.41 per barrel.

 

European markets rose 0.1%-0.5%.

 

China’s industrial output and retail sales data for July missed expectations. The central bank in China, cut lending rates to revive demand.

 

AT HOME

 

Benchmark indices rose a fifth of a percent, extending the winning streak to fifth consecutive day. Sensex settled at 59462, up 130 points while Nifty added 39 points to finish at 17698. Nifty mid-cap and small-cap indices gained 0.7% and 0.25% respectively. BSE Oil & Gas and Energy indices climbed 2.5% and 2.2% respectively, becoming top gainers among the sectoral indices, while Healthcare index was the top loser, down 1%, followed by 0.8% lower Teck and IT indices.

 

FIIs net bought stocks, index futures and stock futures worth Rs 3040 cr, 921 cr and 119 cr respectively. DIIs were net sellers to the tune of Rs 839 cr.

 

Rupee depreciated 2 paise to end at 79.66/$.

 

For the week, Sensex and Nifty gained 1.8% and 1.7% respectively, extending the winning streak to fourth consecutive week.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are modestly higher while Nikkei is little changed. SGX Nifty is trading around 17830, suggesting more than 100 points higher start when compared to Friday's close of Nifty futures.

 

In Friday's report we had said that 17719, the top made Thursday, was the immediate hurdle, upon crossover of which, 17900 would be next upside level to eye.  We had also advised holding on to long positions with the stop-loss of 17430.

 

Nifty, after touching a low of 17597, rebounded to touch a high of 17724 before closing at 17698. The benchmark is set to open near 17800 today.

 

17850-17900, around which a trendline adjoining tops made in October 2021 and January 2022 is placed, is the next target area; Once this hurdle is taken out, 18115, the top made in April, would be the next target. 17550 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 39425, the top made in February 2022, is the next upside level to eye, above which, 39760, the 78.6% retracement level of the entire 41830-34018 fall, would be the next target; 38500 is the immediate support, with the stop-loss of which, trading longs can be held on to.

17725 ACHIEVED; 17900 NEXT

 

17725 ACHIEVED; 17900 NEXT

 

WORLD MARKETS

 

After a higher start on the back of positive PPI data, US indices lost steam as the day progressed and ended off the day's highs. Dow ended marginally higher while S & P 500 and Nasdaq fell 0.1% and 0.6% respectively.

 

July producer price index showed a surprise decline of 0.5% month-on-month, compared with an estimate of a 0.2% gain. The PPI reading excluding food and energy rose less than expected.

 

US 10-year treasury yield rose 11 bps to 2.889%. Dollar index was flattish at 105.09. Gold was little changed at $1789 per ounce.

 

Oil prices rose after the International Energy Agency raised its oil demand growth forecast for this year. Brent crude futures gained 2.7% to $100.03 a barrel, while WTI crude futures advanced 3.2% to $94.87.

 

In Europe, FTSE fell 0.6%, DAX was flat while CAC rose 0.3%.

 

AT HOME

 

Sensex and Nifty gained 0.9% and 0.7% respectively to close at 4-month high. Sensex settled at 59332, up 515 points while Nifty added 124 points to finish at 17659. Nifty mid-cap and small-cap indices gained 0.9% each. BSE Bankex and IT indices gained 1.6% each, becoming top gainers among the sectoral indices while FMCG and Metal indices were the top losers, down 0.7% and 0.2% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2298 cr, 922 cr and 983 cr respectively. DIIs were net sellers to the tune of Rs 730 cr.

 

Rupee depreciated 12 paise to end at 79.64/$.

 

OUTLOOK

 

Today morning, Nikkei is up more than 2% while Hang Seng and Shanghai are modestly lower. SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had reiterated 17725 target and has advised trailing stop-loss in longs to 17420.

 

Nifty touched a high of 17719 before closing at 17659, nearly achieving target mentioned above and vindicating our view.

 

17719, the top made yesterday, is the immediate hurdle, upon crossover of which, 17900, around which a trendline adjoining tops made in October 2021 and January 2022 is placed, would be next upside level to eye; 17430 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

39425, the top made in February, is the next target for Banknifty; 38100 is immediate support.

 

Hero Motocorp and ONGC will report their quarterly earnings today.

NIFTY SET TO ACHIEVE 17725

 

NIFTY SET TO ACHIEVE 17725

 

WORLD MARKETS

 

US indices surged 1.6%-2.9%, after a key inflation reading showed a higher-than-expected slowdown for rising prices.

 

The headline consumer price index for July rose 8.5% y-o-y and was flat compared with June. Expected figures were 8.7% and 0.2%, respectively. Core inflation, which strips out volatile food and energy prices, also saw a smaller-than-expected increase.

 

US 10-year treasury yield was unchanged at 2.785%. Dollar index tumbled 1% to 105.20. Gold eased 0.2% to $1791 per ounce.

 

Brent crude futures rose 68 cents, or 0.7%, to $96.99 a barrel and WTI futures gained 83 cents, or 0.9%, to $91.33.

 

European markets rose 0.25%-1.2%. German final July consumer price inflation came in at 7.5% y-o-y and 0.9% monthly, roughly in line with expectations.

 

China's Producer price index for July rose by 4.2% annually while consumer prices increased by 2.7%, both slightly below analyst expectations.

 

AT HOME

 

Sensex ended marginally lower while Nifty inched up a bit after a rangebound session. Sensex settled at 58817, down 35 points while Nifty added 9 points to finish at 17534. Nifty mid-cap and small-cap indices fell 0.2% and 0.4% respectively. BSE Metal and Capital Goods indices climbed 1.9% and 1.3% respectively, becoming top gainers among the sectoral indices while IT and Realty indices were the top losers, down 1% and 0.8% respectively.

 

FIIs net bought stocks worth Rs 1062 cr but net sold index futures and stock futures worth Rs 877 cr and 461 cr respectively. DIIs were net sellers to the tune of Rs 768 cr.

 

Rupee appreciated 14 paise to end at 79.52/$.

 

Hindalco surged after the company posted highest ever quarterly profit at Rs. 4119 cr, up 48% y-o-y.

 

 

 

OUTLOOK

 

Nikkei is shut today while Hang Seng and Shanghai are up 1.2% and 0.5% respectively. SGX Nifty is suggesting around 180 points higher start for our market.

 

In yesterday's report we had said that 17725, around which a trendline adjoining tops made in January and April is placed, was the next target to eye while immediate support on the hourly chart had moved up to 17350, with the stop-loss of which, trading longs could be held on to.

 

Nifty ended little changed at 17535 and is set to open near 17700 today.

 

With today's gap-up opening, Nifty would nearly achieve 17725 target we have been mentioning. Above 17725, 17900 around which a trendline adjoining tops made in October 2021 and January 2022 is placed, would be next upside level to eye; 17420 would be immediate support after today's gap-up start, with the stop-loss of which, trading longs can be held on to.

 

38640, 39425 are upside levels for Banknifty; 38000 is immediate support.