NIFTY SET TO ACHIEVE 11794 TARGET; TRAIL STOP-LOSS TO 11510

 

NIFTY SET TO ACHIEVE 11794 TARGET; TRAIL STOP-LOSS TO 11510

 

WORLD MARKETS

 

Dow and Nasdaq soared 1.9% each while S & P 500 rose 1.7% after President Trump tweeted support for aid to airlines and other stimulus measures. DJIA had it's best day in nearly 3-months.

 

Brent crude futures fell $1.15, or 2.7%, to $41.51 a barrel, while WTI crude settled 72 cents, or 1.8% lower at $39.95 per barrel. Weekly crude inventories rose by 501,000 barrels to 492.9 million barrels, compared with expectation of a 294,000-barrel rise.

 

In Europe, FTSE and CAC fell 0.1% and 0.3% respectively while DAX rose 0.2%.

 

AT HOME

 

Sensex and Nifty rose 0.8% and 0.7% respectively, extending the winning streak to fifth consecutive day and closing at nearly 7-1/2 month high. Sensex settled at 39878, up 304 points while Nifty rose 76 points to finish at 11738. BSE mid-cap and small-cap indices however fell 0.6% and 0.4% respectively. BSE Consumer Durables and Energy indices climbed 1.7% and 1.6% respectively, becoming top gainers among the sectoral indices while Metal index tumbled 3%, becoming top loser, followed by 1.6% lower Realty index.

 

FIIs net bought stocks and index futures worth Rs 1094 cr and 781 cr respectively but sold stock futures worth Rs 267 cr. DIIs were net sellers to the tune of Rs 1129 cr.

 

Rupee appreciated 11 paise to end at 73.33/$.

 

TCS reported stellar set of quarterly result. Dollar revenue rose 7.2% q-o-q to $5424 mn, Rupee revenue rose 4.7% to Rs 40135 cr, EBIT was up 16.2% at Rs 10515 cr, margins improved 260 bps to 26.2% and net profit rose 6.7% to Rs 7475 cr. Management commentary was also bullish. The company announced Rs. 16000 cr buyback at  Rs. 3000 per share.

 

OUTLOOK

 

 

Shanghai is shut today while Nikkei is up 1% and Hang Seng is down 0.7%. SGX Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that 11794, the top made in August, was the next upside target to eye and had advised trailing stop-loss in long positions to 11400.

 

Nifty touched a high of 11763 before closing at 11738 and is set to open near 11800 today.

 

A higher start today will likely achieve 11794 target.

 

12000 would be the next upside target upon sustained above 11794. Immediate support on the hourly chart has moved up to 11510, with the stop-loss of which, long positions should be held on to.