NIFTY ACHIEVES 12158 TARGET; TRAIL STOP-LOSS TO 12030

NIFTY ACHIEVES 12158 TARGET; TRAIL STOP-LOSS TO 12030

WORLD MARKETS

US indices ended marginally higher, hitting fresh record highs and extending the winning streak to fifth straight day.

U.S. housing starts rose more than expected in November as building permits surged to a 12½-year high.

Brent crude rose 67 cents to $66.01 a barrel while WTI crude gained 73 cents to settle at a 3-month high of $60.94.

The British pound dropped more than 1% against the dollar  amid reports that U.K. Prime Minister Boris Johnson will amend the Brexit bill, explicitly ruling out any extension to the transition period beyond December 2020. That would leave little time to reach a trade deal with the European Union, raising the risks of a no-deal Brexit.

In Europe, FTSE rose 0.1% but DAX and CAC fell 0.9% and 0.4% respectively.

AT HOME

Benchmark indices soared a percent to hit fresh record intraday as well as closing highs. Sensex settled at 41352, up 413 points while Nifty added 111 points to finish at 12165. BSE mid-cap and small-cap indices gained 0.4% and  0.7% respectively. BSE Telecom and Metal indices climbed 3.3% and 3% respectively, becoming top gainers among the sectoral indices while Consumer Durables index fell 0.7%, becoming top loser, followed by 0.2% lower Healthcare and Realty indices.

FIIs net bought stocks and stock futures worth Rs 1248 cr and 660 cr respectively but net sold index futures worth Rs 44 cr. DIIs were net sellers to the tune of Rs 908 cr.

Rupee appreciated 2 paise to end at 70.97/$.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points higher start for our market.

Readers would recall that we had turned our view on Nifty positive afer 11980 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss. After the benchmark achieved 12080 target, we were working with next target of 12158, the top made in November. We had also said that once 12158 is taken out, 12325, where an upward sloping trendline adjoining tops made in September and November is placed, would be the next target to eye.

The benchmark yesterday surged to touch a high of 12182 before closing at 12165, achieving 12158 target and vindicating our view.

Upward sloping trendline adjoining tops made in September and November, placed around 12330, continues to be next major upside target to eye.

Immediate support on the hourly chart has moved up to 12030, with the stop-loss of which, trading longs should be held on to.

GST council meets today and the agenda include a review of GST and compensation cess rates on various items, rate calibrations for addressing the inverted duty structure, compliance measures other than those currently under implementation to augment revenue.