NIFTY ALL SET FOR NEW RECORD; STAY LONG WITH THE STOP-LOSS OF 11975

NIFTY ALL SET FOR NEW RECORD; STAY LONG WITH THE STOP-LOSS OF 11975

WORLD MARKETS

US indices rose 0.7%-1.3% to hit fresh record highs amid increasing expectations that China and the U.S. will reach a so-called phase one trade deal.

China will raise penalties for violating intellectual property rights, according to the guidelines published by the Chinese government on Sunday. The Global Times, a state-run newspaper in China, also said both sides are getting “close” to reaching a deal.

On Saturday, U.S. national security advisor Robert O’Brien said that a phase one trade deal with China could happen before the end of the year. He also cautioned, however, that Trump would not ignore ongoing protests in Hong Kong.

Earlier, Hong Kong’s Hang Seng index surged 1.5% after pro-democracy candidates surged to a landslide victory following a record voter turnout.

Brent crude futures gained 25 cents to reach $63.64 a barrel while WTI crude gained 24 cents to settle at $58.01.

European markets gained 0.5%-1%. The Ifo business climate index on Monday showed that German business sentiment index improved to 95 in November compared to an upwardly revised 94.7 in October. Companies’ appraisal of the current situation edged up from 97.8 in October to 97.9.

AT HOME

Sesnex and Nifty soared 1.3% each with Sensex hitting fresh record high while Nifty closed at the highest level since 3rd June. Sensex settled at 40889, up 530 points while Nifty added 159 points to finish at 12073. BSE mid-cap and small-cap indices gained 1.2% and 0.8% respectively. All the BSE sectoral indices ended higher with Telecom index on the top, up 6.8%, followed by 3.3% higher Metal index.

FIIs net bought stocks, index futures and stock futures worth Rs 961 cr, 1953 cr and 143 cr respectively. DIIs were net sellers to the tune of Rs 214 cr.

Rupee depreciated 1 paise to end at 71.72/$.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.8% and SGX Nifty is suggesting about 25 points higher start for our market.

In yesterday's report we had said that "11883, the low made on Friday, also coincided with 20-DMA and hence is the immediate support to eye".  We had also said that "12038, the top made last week, which also coincided with the top made earlier in the month, continues to be immediate hurdle".

Nifty broke 12038 hurdle and surged all the way to 12084 before closing at 12073 and is set to open near 12100 today.

12103, the top made in June, is the immediate target on the way up, upon crossover of which, 12350, where an upward sloping trendline adjoining tops made in August 2018 and June 2019 is placed, would be the next major target/resistance to eye.

Immediate support on the hourly chart is placed around 11975, with the stop-loss of which, trading longs should be held on to.