STAY LONG WITH THE STOP-LOSS OF 12730

 

STAY LONG WITH THE STOP-LOSS OF 12730

 

WORLD MARKETS

 

Dow climbed 1.1% while S & P 500 and Nasdaq rose 0.6% and 0.2% respectively on the back of more promising developments on the Covid-19 vaccine front, strong economic data and President-elect Joe Biden’s choice of former Fed Chair Janet Yellen as Treasury Secretary.

 

AstraZeneca said interim analysis showed its vaccine has an average efficacy of 70%.

 

The IHS Markit's Manufacturing PMI for the US edged higher to 56.7 in November from 53.4 in October and beating expectation of 53 by a wide margin. The Services PMI rose to 57.7 from 56.9 and surpassed the estimate of 55.3.

 

News reports suggested that Joe Biden will nominate former Fed Chair Janet Yellen to be Treasury Secretary, which market thinks will push for further fiscal stimulus.

 

Brent crude rose 92 cents, or 2%, to $45.89 a barrel, while WTI crude settled 64 cents, or 1.5%, higher at $43.06 per barrel.

 

The dollar index bounced back to 92.60, up 0.2%, after earlier dropping to 92.013, the lowest since Sept. 1. Spot gold dipped 1.7% to $1,839 per ounce, after falling to its lowest in four months at $1,835.

 

European markets ended with modest cuts. IHS Markit’s flash PMI for the euro zone came in at 45.1 in November — the lowest reading in six months. French composite PMI came in at 39.9, down from 47.5 in October. Germany’s composite reading was 52.0, down from 55.0 in October.

 

AT HOME

 

Benchmark indices rose nearly half a percent, extending the winning streak to second straight day. Sensex added 195 points to settle at 44077 while Nifty finished at 12926, up 67 points. BSE mid-cap and small-cap indices surged 1.3% each. BSE IT and Oil & Gas indices surged 2.9% and 2.7% respectively, becoming top gainers among the sectoral indices while Telecom index and Bankex were the top losers, down 0.9% and 0.8% respectively.

 

FIIs net bought stocks and index futures worth Rs 4738 cr and 73 cr respectively but net sold stock futures worth Rs 692 cr. DIIs were net sellers to the tune of Rs 2944 cr.

 

Rupee appreciated 6 paise to end at 74.10/$.

 

OUTLOOK

 

Today, Nikkei, which was shut yesterday, is trading with gains of more than 2% while Shanghai and Hang Seng are trading with modest cuts. SGX Nifty is suggesting around 20 points higher start for our market.

 

In yesterday's report we had said that 12963, the top made last week, was the immediate hurdle, upon crossover of which, 13200 would be the next target. We had also advised holding on to long positions with the stop-loss of 12730.

 

Nifty touched a high of 12968 before closing at 12926 and is set to open near 12950 today.

 

Upon sustained trading above 12970, 13200 would be the next upside target for Nifty. Meanwhile trading longs can be held on to with the stop-loss of 12730.