TRAIL STOP-LOSS TO 12155

TRAIL STOP-LOSS TO 12155

WORLD MARKETS

US indices gained 0.3%-0.5% on Friday to hit fresh record highs on  continued optimism over US-China trade relations and positive economic data.

President Trump tweeted he had a “very good talk” with Chinese President Xi Jinping about the U.S.-China trade deal, noting “China has already started large scale purchases of agricultural product & more.”

Consumer spending growth for the third quarter was revised higher to 3.2% from 2.9%. Sentiment among consumers also remained strong in December.

Brent crude fell 48 cents, or 0.7%, to $66.06 a barrel. U.S. West Texas Intermediate crude fell 74 cents, or 1.2%, to settle at $60.44.

European markets rose 0.1%-1.2%. U.K. third-quarter GDP grew by 0.4% quarter-on-quarter and 1.1% from the same period last year.

For the week, US indices gained 1.2%-2.1% with the S & P 500 extending the winning streak to fourth consecutive week. In Europe, FTSE soared 3.1%, CAC gained 1.7% while DAX rose 0.3%. In Asia, except 0.9% lower Nikkei, other markets gained 0.7%-1.6% with India on the top.

AT HOME

Benchmark indices ended marginally higher after trading in a narrow range, extending the winning streak to fourth straight day and hitting fresh record highs. Sensex settled at 41681, up 8 points while Nifty added 12 points to finish at 12271. BSE mid-cap index rose 0.2% while small-cap index ended a tad lower. BSE Consumer Durables and Telecom indices climbed 1.2% and 0.9% respectively, becoming top gainers among the sectoral indices while Healthcare and Auto indices were the top losers, down 0.4% each.

FIIs net bought stocks, index futures and stock futures worth Rs 339 cr, 708 cr and 1179 cr respectively. DIIs were net sellers to the tune of Rs 285 cr.

Rupee depreciated 9 paise to end at 71.12/$.

For the week, Sensex and Nifty gained 1.6% and 1.5% respectively, extending the winning streak to second consecutive week. BSE mid-cap index however ended flat while small-cap index rose just 0.4%.

OUTLOOK

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

Just to reiterate, after 12158 target was achieved, we have been working with next upside target of upward sloping trendline adjoining tops made in September and November, which is currently placed around 12360.

Nifty, on Friday, touched a high of 12293 before closing at 12271 and is set to open marginally higher today.

Upward sloping trendline adjoining tops made in September and November, which is currently placed around 12360, continues to be next upside target/resistance to eye.

Immediate support on the hourly chart has moved up to 12155, with the stop-loss of which, trading longs should be held on to.