11140-11220 IS THE NEXT TARGET ZONE; STAY LONG WITH THE STOP-LOSS OF 10885

11140-11220  IS THE NEXT TARGET ZONE; STAY LONG WITH THE STOP-LOSS OF 10885

WORLD MARKETS

Dow rose 0.3%, extending the winning streak to fifth straight day, while S & P 500 and Nasdaq ended little changed as technology stocks fell.

On the US-China trade front, South China Morning Post reported yesterday that China has offered to increase U.S. agricultural purchases in exchange for a delay in tariffs and easing of a supply ban against telecommunications giant Huawei Technologies.

Earlier, the U.S. Treasury Secretary, Steven Mnuchin, said there is a “conceptual agreement” around intellectual property theft with China. This is one of the most contentious issues between both countries. Meanwhile, Huawei dropped one of its lawsuits against the U.S. after some equipment seized by Washington nearly two years ago was returned to the company.

Brent futures fell 34 cents, or 0.5%, to $62.25 a barrel while WTI futures settled 45 cents, or 0.8% lower, at $57.40 a barrel.

European markets, except 0.6% lower Italy, gained 0.1%-0.8%. In UK, lawmakers early Tuesday morning rejected Johnson’s second bid to hold a snap general election. British Parliament is now suspended until October 14 with the Brexit outcome no clearer.

AT HOME

Benchmark indices gained nearly half a percent on Monday, with Nifty extending the winning streak to fourth straight day. Sensex settled at 37145, up 163 points while Nifty added 56 points to finish at 11003. BSE mid-cap and small-cap indices gained 1% and 0.9% respectively. Except 0.8% and 0.5% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Telecom and Capital Goods indices leading the tally, up 1.7% each.

FIIs net sold stocks and stock futures worth Rs 188 cr and 53 cr respectively but net bought index futures worth Rs 221 cr. DIIs were net buyers to the tune of RS 686 cr.

Rupee appreciated 2 paise to end at 71.70/$.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.3%-0.5% and SGX Nifty is suggesting a flattish start for our market.

In Monday's report we had said that "10980 continues to be immediate hurdle, a crossover of which is required to generate a "Buy" on the hourly chart. If that happens, 11140-11200 would be the next target zone".

Nifty crossed 10980 hurdle and touched a high of 11028 before closing at 11003 and is set

11140-11220 is the next target zone where 11141 and 11181 are the tops made on 27th August and 9th August respectively while 11220 is where 200-DMA is placed.

10885 is where immediate support is placed on hourly chart, with the stop-loss of which, trading longs should be held on to.