116000 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 11410

116000 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 11410

WORLD MARKETS

US indices ended mixed with modest changes after digesting a series of conflicting reports on US-China trade negotiations.

Media reports suggested that U.S. officials are worried China may be pushing back against U.S. demands in the countries’ ongoing trade talks. The report also said Chinese negotiators are worried they have not received assurances that tariffs imposed on Chinese goods would be lifted once a deal is struck. On the flip side, another report said the talks were in the final stages, noting Chinese Vice Premier Liu He will travel to Washington in the next few weeks.

US crude fell 6 cents to $59.03 a barrel, after hitting an intraday peak at $59.57, the highest level since Nov. 12. Brent crude oil futures rose 7 cents at $67.61 per barrel.

European markets gained 0.3%-1.1%

AT HOME

Sensex and Nifty gained 0.7% and 0.6% respectively, extending the winning streak to seventh consecutive day and closing at the highest level since 7th September 2018, marking a six and a half month high. Sensex added 268 points to settle at 38363 while Nifty finished at 11532, up 70 points. BSE mid-cap and small-cap indices rose 0.5% and 0.4% respectively. BSE Telecom and Energy indices climbed 1.8% and 1.5% respectively, becoming top gainers among the sectoral indices while Auto and Capital Goods indices were the top losers, down 0.6% each.

FIIs net bought stocks and index futures worth Rs 2132 cr and 288 cr respectively but net sold stock futures worth Rs 601 cr. DIIs were net sellers to the tune of Rs 1254 cr.

Rupee depreciated 44 paise to end at 68.96/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.5% and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that after Nifty achieved 11465 target, we had given next targets of 11523, followed by 11600. Nifty, after achieving 11523 target on Monday, moved higher to touch a high of 11543 yesterday before closing at 11532.

11600 continues to be next upside target above which 11760, the top made in August 2018, would be the next major target as well as resistance to eye.

Immediate support on the hourly chart has moved up to 11410, with the stop-loss of which, trading longs should be held on to.

The U.S. Federal Reserve is set to announce its decision on interest rates later today following its two-day monetary policy meeting. Market expectations for a rate hike are at zero, however, investors will look for clues on the Fed’s economic outlook. The Fed is also expected to lower its interest rate forecasts — or “dot plots” — to show little or no further tightening in 2019 and adopt a cautious tone in light of slowing global economic growth.