NIFTY ACHIEVES 12950 TARGET; TRAIL STOP-LOSS TO 12700

 

NIFTY ACHIEVES 12950 TARGET; TRAIL STOP-LOSS TO 12700

 

WORLD MARKETS

 

After opening in the green, US indices saw a sustained downward move through the session to end deep in the red as fresh lockdown measures overshadowed vaccine progress news. Dow and S & P 500 slipped 1.2% each while Nasdaq fell 0.8%.

 

Pfizer said final analysis had shown its vaccine was 95% effective and would be submitted to the U.S. Food and Drug Administration (FDA) for approval within days.

 

New York City yesterday announced it would close public schools as positivity rates in the city increase. On Tuesday, the US reported more than 155,800 new COVID-19 cases, and hospitalizations neared 77,000.

 

Brent crude rose 70 cents, or 1.6%, to $44.45 a barrel, while WTI crude settled 39 cents higher at an 11-week high of $41.82 per barrel.

 

European markets gained 0.3%-0.9%.

 

AT HOME

 

Bulls continued to charge ahead as benchmark indices added another half a percent, extending the winning streak to fourth straight day and hitting yet another record high. Sensex added 227 points to settle at 44180 while Nifty finished at 12938, up 64 points. BSE mid-cap and small-cap indices climbed 1.2% and 0.9% respectively. BSE Capital Goods and Auto indices surged 3.7% and 3.1% respectively, becoming top gainers among the sectoral indices while FMCG index was the top loser, down 1.1%, followed by 1% lower IT and Teck indices.

 

FIIs net bought stocks and index futures worth Rs 3072 cr and 447 cr respectively but net sold stock futures worth Rs 295 cr. DIIs were net sellers to the tune of Rs 2790 cr.

 

Rupee closed at 74.20/$, appreciating 26 paise compared to previous close.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.1%-0.7% and SGX Nifty is suggesting around 60 points lower start for our market.

 

In yesterday's report we had reiterated the view that 12950-13000 continued to be the next target zone and had advised holding on to long positions with the stop-loss of 12607.

 

Nifty touched a high of 12949 before closing at 12938 and is set to open below 12900 today.

 

12949, the top made yesterday, is the immediate hurdle to eye, upon crossover of which, 13050-13100 would be the next target zone.

 

Immediate support on the hourly chart has moved up to 12700, with the stop-loss of which, trading longs can be held on to.