12350 CONTINUES TO BE NEXT MAJOR TARGET; 11980 CONTINUES TO BE IMMEDIATE SUPPORT

12350 CONTINUES TO BE NEXT MAJOR TARGET; 11980 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.2%-0.7%, extending their winning streak to fourth straight day and hitting fresh record highs, after the release of stronger-than-forecast economic data.

Durable goods orders rose 0.6% in October vs expectation of a decline of 0.8%. Weekly jobless claims, meanwhile, fell to 213,000 from 227,000. Third-quarter GDP was revised to show growth of 2.1%, up from a previous reading of 1.9%.

Meanwhile, Beige Book, the Federal Reserve’s summary of economic conditions, showed the central bank saw the economy expanding modestly between October and mid-November.

Brent crude futures fell 27 cents, or 0.4%, to settle at $64.00 a barrel while WTI crude fell 30 cents, or 0.5%, to $58.11 after a report showing U.S. crude inventories grew unexpectedly last week and gasoline stocks surged.

Earlier, data showed that Chinese industrial profits dropped for a third consecutive month in October.

In Europe, FTSE and DAX rose 0.4% each while CAC ended flat. French consumer confidence data exceeded expectations to hit 106 in November, its highest since June 2017 and up from 104 in October.

AT HOME

Sensex and Nifty gained half a percent each to post record closing highs. Sensex added 199 points to settle at 41020 while Nifty finished at 12100, up 63 points. BSE mid-cap and small-cap indices gained 0.8% and 0.2% respectively. BSE Auto index climbed 1.2%, becoming top gainer among the sectoral indices, followed by 1% higher Oil & Gas and Basic Materials indices. Capital Goods and Realty indices were the top losers, down 1.1% and 0.6% respectively.

FIIs net bought stocks and stock futures worth Rs 43 cr and 529 cr respectively but net sold index futures worth Rs 371 cr. DIIs were net buyers to the tune of Rs 440 cr.

Rupee appreciated 13 paise to end at 71.35/$.

OUTLOOK

According to a White House statement, Trump has signed into law two bills backing protesters in Hong Kong. That move comes despite past objections by China amid ongoing trade negotiations between Beijing and Washington.

Today morning, Hang Seng is down about half a percent while Nikkei and Shanghai are marginally in the red. SGX Nifty is suggesting a marginally lower start for our market.

Readers would recall that after Nifty crossed 12103 hurdle, we have been working with next major upside target of 12350.

The benchmark yesterday climbed 63 points to finish at 12100.

12350, where an upward sloping trendline adjoining tops made in August 2018 and June 2019 is placed, continues to be the next major target/resistance to eye.

11980 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.

US markets will be closed today for Thanksgiving holiday.