NIFTY NEARLY ACHIEVES 11856 TARGET; TRAIL STOP-LOSS TO 11591

NIFTY NEARLY ACHIEVES 11856 TARGET; TRAIL STOP-LOSS TO 11591

WORLD MARKETS

US indices fell 0.3%-1.5% as the intensifying fallout from a U.S. crackdown on Chinese telecom giant Huawei pressured the technology sector.

Alphabet’s Google has suspended business with Huawei that involves transferring hardware, software and other technical services. Also, media reports suggested that companies like Intel, Qualcomm and Broadcom will not supply Huawei until further notice.

US crude rose 34 cents to $63.10 a barrel while Brent fell 24 cents to $71.97.

European markets fell 0.5%-2.7%.

AT HOME

Benchmark indices soared 3.7% each to hit a record closing high and registering the biggest single day gain since 10th September 2013, responding to the exit polls showing comfortable majority for the BJP led NDA. Sensex added 1421 points to settle at 39352 while Nifty finished at 11828, up 421 points. BSE mid-cap and small-cap indices climbed 3.6% each. All the BSE sectoral indices ended in green with Industrials and Realty indices leading the tally, up 5.6% and 5.5% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1734 cr, 1071 cr and 793 cr respectively. DIIs were net sellers to the tune of Rs 543 cr.

Rupee appreciated 48 paise to end at 69.73/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.1%-0.5% and SGX Nifty is suggesting a modestly higher start for our market.

Readers would recall that we had advised going long on Nifty after 11320-11350 resistance zone was taken out. In yesterday's report we had said that 11650, where a trendline adjoining recent tops on the daily chart is placed, was the immediate target, upon crossover of which 11856, the top made last month, would be the next major target.

Nifty soared to touch a high of 11845, coming very close to 11856 target before closing at 11828, vindicating our view.

11856 continues to be immediate hurdle to eye, upon crossover of which 11920 and 12010 would be next upside targets.

11591, the low made yesterday, also coincides with 34-DMA, and hence is the immediate support, with the stop-loss of which, existing longs can be held on to.