STAY LONG WITH THE STOP-LOSS OF 12155

STAY LONG WITH THE STOP-LOSS OF 12155

WORLD MARKETS

US and European markets were shut yesterday for Christmas holiday.

On Tuesday, US indices ended little changed.

President Trump said Tuesday the trade deal with China is getting done, adding there will be a signing ceremony with Chinese leader Xi Jinping.

Brent crude rose 81 cents, or 1.22%, to $67.20 a barrel, while U.S. WTI gained 59 cents, or 1%, to settle at $61.11 per barrel.

In Europe, FTSE rose 0.1% while CAC ended flat.

AT HOME

Benchmark indices slipped four tenth of a percent, extending the losing streak to second straight day. Sensex lost 181 points to settle at 41461 while Nifty finished at 12214, down 48 points. BSE mid-cap and small-cap indices ended little changed. BSE Energy and Oil & Gas indices tumbled 1.2% and 0.9% respectively, becoming top losers among the sectoral indices while Metal and Realty indices were the top gainers, up 0.6% and each.

FIIs net sold stocks, index futures and stock futures worth Rs 114 cr, 469 cr and 236 cr respectively. DIIs were net sellers to the tune of Rs 345 cr.

Rupee depreciated 9 paise to end at 71.26/$.

OUTLOOK

Today, Nikkei is up about half a percent, Shanghai is flat while Hang Seng is shut. SGX Nifty is suggesting a flattish start for our market.

In Tuesday's report we had said that "12375, where an upward sloping trendline adjoining tops made in September and November is placed, continues to be next major upside target/resistance zone to eye" and had advised holding on to long positions with the stop-loss of 12155.

Nifty slipped 48 points to close at 12214.

12155 continues to be immediate support on the hourly chart upon breach of which, 20-DMA, placed around 12080, would be the next support to eye.

12294, the top made last week, is now the immediate hurdle, upon crossover of which 12375, where an upward sloping trendline adjoining tops made in September and November is placed, would be the next target to eye.

Meanwhile, trading longs can be held on to with the stop-loss of 12155.