NIFTY ACHIEVES 10880 TARGET; TRAIL STOP-LOSS TO 10740

NIFTY ACHIEVES 10880 TARGET; TRAIL STOP-LOSS TO 10740

WORLD MARKETS

US indices fell 0.1%-0.25% on uncertainty over trade deal between US and China.

Trump told reporters that he was "close" to doing something on trade with China but added he wasn't sure if he wanted to do it.  "Because what we have right now is billions and billions of dollars coming into the United States in the form of tariffs or taxes, so I really don't know," he said.

Meanwhile, reports said that White House advisor Peter Navarro would be attending the dinner between Trump and Xi. This dampened hopes of trade deal, given his longstanding hawkish tone on U.S.-China trade.

Minutes of the latest Fed meeting showed some officials think the federal funds rate could be "near its neutral level," possibly signaling fewer rate hikes down the road.

US crude rose 2.3% to $51.45 a barrel on report that Russia had accepted the need to cut production, together with OPEC ahead of its meeting next week. Brent rose 75 cents, or 1.3%, to $59.51.

European markets ended mixed with modest changes.

AT HOME

Benchmark indices soared a percent and fifth to close at the highest level since 1st October 2018. Sesex added 453 points to settle at 36170 while Nifty finished at 10858, up 129 points. BSE mid-cap and small-cap indices however underperformed, rising just 0.6% and 0.2% respectively. BSE Metal index and Bankex climbed 2% and 1.8% respectively, becoming top gainers among the sectoral indices while IT index was the top loser, down 1%, followed by 0.7% lower Utilities and Teck indices.

FIIs net bought stocks, index futures and stock futures worth Rs 823 cr, 3303 cr and 657 cr respectively. DIIs were net buyers to the tune of Rs 973 cr.

Rupee appreciated 78 paise to end at 69.84/$, the highest level since August 21.

OUTLOOK

Today morning, Nikkei and Shanghai are marginally lower while Hang Seng is up 0.2%. SGX Nifty is suggesting about 25 points higher start for our market.

Readers would recall that we had given upside targets of 10775 followed by 10880 after immediate hurdle of 10625 was taken out.

Nifty yesterday soared to 10883 before closing at 10858, achieving 10880 target and vindicating our view.

10965, where 20-week moving average is placed, is the next upside target/resistance to eye.

200-DMA, placed around 10740, would now act as the immediate support, with the stop-loss of which, trading longs can be held on to.