11345 IS THE NEXT UPSIDE TARGET; 11075 IS IMMEDIATE SUPPORT

 

11345 IS THE NEXT UPSIDE TARGET; 11075 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices surged 1.5%-1.9% after House Speaker Nancy Pelosi said another relief bill was still on the table and Florida lifted capacity restrictions on restaurants over the weekend.

 

Pelosi said that the Democrats were unveiling a new $2.2 trillion stimulus package, smaller than the more than $3 trillion proposed earlier in the crisis but still well above what Republican leaders have offered. The new bill would include enhanced unemployment benefits and aid to airlines and state and local governments, according to a summary.

 

Brent crude settled 51 cents, or 1.2%, higher at $42.43 per barrel while WTI rose 35 cents, or 0.9% to $40.60 per barrel. The dollar index slipped 0.33% to 94.27, its biggest daily percentage drop in a month.

 

European markets climbed 1.5%-3.2%

 

AT HOME

 

Benchmark indices soared 1.6% each, extending the winning streak to second straight day and wiping out more than half of the losses suffered in previous six sessions. Sensex settled at 37981, up 592 points while Nifty added 177 points to finish at 11227. BSE mid-cap and small-cap indices climbed 2.7% and 2.5% respectively. All the BSE sectoral indices ended in green with Power index and Bankex leading the tally, up 3.4% each.

 

FIIs net sold stocks worth Rs 27 cr but net bought index futures and stock futures worth Rs 709 cr and 777 cr respectively. DIIs were net buyers to the tune of Rs 542 cr.

 

Rupee depreciated 16 paise to end at 73.77/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are marginally higher while Nikkei is off half a percent. SGX Nifty is suggesting around 20 points higher start for our market.

 

After Nifty rebounded from the 200-DMA support placed around 10800, we had said that 11225 was the immediate hurdle on the way up.

 

Nifty yesterday surged to 11239 before closing at 11227, crossing the 11225 hurdle decisively.

 

11345, the 67% retracement level of the recent 11618-10790 fall, which also coincides with the 20-DMA, is the next upside target/resistance to eye.

 

Immediate support on the hourly chart is palced at 11075, with the stop-loss of which, trading longs can be held on to.