10880 IS THE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 10625

10880 IS THE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 10625

WORLD MARKETS

US indices soared 2.3%-3%, with the Dow posting its biggest single day gain in eight months, after Federal Reserve Chairman Jerome Powell said interest rates are close to neutral, an important distinction from  "long way from neutral" remarks he made less than two months ago.

Bank stocks climbed as short-term borrowing rates fell and long-term rates rose following Powell's remarks.

Media reports suggesting that Trump was worried about the impact of a long trade war with China on markets and the economy, which could make him seek a compromise with China on trade, also boosted sentiment.

Dollar index fell about half a percent to 96.83.

US oil tumbled 2.5% to $50.29 a barrel and Brent fell $1.05, or 1.7% to $59.16 after U.S. crude inventories rose for the 10th week in a row.

European markets ended mixed with modest changes.

AT HOME

Sensex and Nifty gained 0.6% and 0.4% respectively, extending the winning streak to third straight day Sensex settled at 35717, up 204 points while Nifty added 43 points to finish at 10728. BSE mid-cap and small-cap indices however tumbled 0.5% each. BSE IT and Teck indices soared 3.6% and 2.9% respectively, becoming top gainers among the sectoral indices while Telecom and Realty indices tumbled 2.9% and 1.9% respectively, becoming top losers.

FIIs net sold stocks and stock futures worth Rs 961 cr and 571 cr respectively but net bought index futures worth Rs 1067 cr. DIIs were net buyers to the tune of Rs 330 cr.

Rupee appreciated 14 paise to end at 70.62/$.

Yes Bank tumbled as Moody’s Investors Service downgraded its foreign currency borrowings (FCBs) by two notches to non-investment grade on the back of a series of resignations from the Board.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.5%-1% and SGX Nifty is suggesting about 100 points higher start for our market.

In yesterday's report we had said that "10775, the top made on 19th November, continues to be next upside target above which 10880, the 50% retracement level of the entire 11760-10004 fall, would be the next target/resistance to eye".

Yesterday, Nifty touched a high of 10757 before closing at 10728 and is set to open above 10800 today.

10880, as mentioned above, continues to be next upside target to eye.

Immediate support on the hourly chart has moved up to 10625, with the stop-loss of which, trading longs should be held on to.