12103 IS NEXT TARGET/HURDLE; TRAIL STOP-LOSS TO 11850

12103 IS NEXT TARGET/HURDLE; TRAIL STOP-LOSS TO 11850

WORLD MARKETS

S & P 500 rose 0.1%, Dow ended flat while Nasdaq fell 0.3% yesterday on uncertainty over US-China tade deal.

Reports suggested US President Trump and Chinese leader Xi Jinping likely won’t meet to sign a trade deal until December as the two sides still need to decide on the terms and a venue.

Brent crude fell $1.22, or 1.9%, to $71.74 a barrel while WTI crude lost 88 cents, or 1.5%, to settle at $56.35 a barrel.

European markets gained upto 0.3%. IHS Markit PMI for the euro zone rose to 50.6 in October from 50.1 in September. Germany remained inside contraction territory, while France outperformed its peers to reach a two-month high of 52.6.

AT HOME

Sensex and Nifty gained 0.6% and 0.4% respectively, with Sensex hitting fresh record closing high while Nifty closed at the highest level since  4th June. Sensex added 221 points to settle at 40469 while Nifty finished at 11966, up 49 points. BSE mid-cap index gained 0.2% but small-cap index lost 0.4%. BSE Realty index and Bankex were the top gainers among the sectoral indices, rising 2.6% and 1.4% respectively while Consumer Durables index nosedived 5.3%, becoming top loser, followed by 2.7% lower Telecom index.

FIIs net bought stocks and index futures worth Rs 1011 cr and 296 cr respectively but net sold stock futures worth Rs 947 cr. DIIs were net sellers to the tune of Rs 1117 cr.

Rupee depreciated 29 paise to end at 70.98/$.

Government yesterday announced setting up an AIF worth Rs 25000 cr for all stuck real estate projects.

Titan tumbled after lowering its jewellery segment revenue guidance to 11-13% for the second half of the ongoing financial year from 20% earlier.

Cipla surged after quarterly results beat estimates on all counts. Net profit rose 25% YoY to Rs 471.3 cr, Revenue rose 9.6% to Rs 4396 cr, EBITDA went up 29.5% to Rs 909.5 cr and margin expanded 320 bps to 20.7%.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a marginally higher start for our market.

For past couple of days we have been mentioning that 11981, the top made in July, is the immediate hurdle, upon decisive crossover of which, 12103 would be next target. We had also advised raising stop-loss in long position to 11835.

Yesterday, Nifty, after touching a low of 11850, rebounded sharply to touch a high of 12002, and then eased a bit to to end at 11966.

12103, the top made in June, is the next major upside target as well as resistance to eye.

11850, the low made yesterday, is now the immediate support, with the stop-loss of which, trading longs should be held on to.

BPCL, HPCL, Sn Pharma, Powergrid and UPL will report their quarterly earnings today.