STAY LONG WITH THE STOP-LOSS OF 9530

STAY LONG WITH THE STOP-LOSS OF 9530

WORLD MARKETS                             

While Dow ended flat, S & P 500 and Nasdaq gained 0.2% and 0.7% respectively yesterday.

Minutes from the Federal Open Market Committee's June meeting revealed that several Fed officials expressed their concern over the impact of rate hikes on the markets. Officials were also divided over when the unwinding of the Fed's balance sheet would begin.

Oil prices, after rising for eight consecutive days, tumbled 4.1% to $45.13 per barrel. Brent fell 3.7% to $47.79.

US Factory orders fell 0.8% in May, more than expected.

In Europe, FTSE, CAC and DAX gained 0.1% each while Italy and Spain lost 0.4% each. Banks ended higher after the European Commission gave the green light to Italy's 5.4 billion euro ($6.1 billion) bailout of Monte dei Paschi di Siena.

AT HOME

After a rangebound trade for better part of the day, benchmark indices spike up in last half an hour to end with modest gains. Sensex settled at 31246, up 36 points while Nifty added 24 points to finish at 9638. Broader market outperformed significantly with BSE mid-cap and small-cap indices climbing 1% and 1.1% respectively. Realty and Basic Material indices were the top gainer among the BSE sectoral indices, rising 1.5% and 1.3% respectively while FMCG and IT were the top losers, down 0.6% and 0.5% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 228 cr, 164 cr and 765 cr respectively. DIIs were net buyers to the tune of Rs 75 cr.

Rupee depreciated 5 paise to end at 64.78/$.

OUTLOOK

Today morning, except a modestly higher Hang Seng, other Asian markets are trading flat to modestly lower and SGX Nifty is suggesting a marginally higher start for our market.

Ever since Nifty crossed the immediate hurdle of 9576, we have been working with the target of 9710, which is the top made in June. Nifty yesterday added 24 points to close at 9638, marching towards this target.

9710 continues to be immediate upside target as well as the hurdle, a crossover of which is required for a fresh upmove.

9530 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.