13400, 13500 ARE NEXT UPSIDE TARGETS; TRAIL-STOP LOSS TO 13107

 

13400, 13500 ARE NEXT UPSIDE TARGETS; TRAIL-STOP LOSS TO 13107

 

WORLD MARKETS

 

US indices rose 0.7%-0.9% on Friday, posting intraday and closing record highs, on expectation that weak jobs report could pressure U.S. lawmakers to make some headway with further fiscal stimulus.

 

U.S. economy added 245,000 jobs in November, well below a consensus estimate of 440,000. The unemployment rate, however, matched expectations by falling to 6.7% from 6.9%.

 

Reports have suggested a stimulus package is making progress, with a $908 billion coronavirus aid plan reportedly garnering bipartisan support late on Thursday.

 

Meanwhile, the U.S. reported record numbers of new coronavirus infections, single-day deaths and hospitalizations on Thursday.

 

Brent crude gained 1.1% to settle at $49.25 per barrel after hitting its highest since early March at $49.92. WTI settled 1% higher at $46.26 per barrel after touching a high of $46.68 a barrel. Both benchmarks registered fifth straight week of gains.

 

Spot gold fell 0.3% to $1,834.92 per ounce.

 

European markets gained 0.6%-0.9%.

 

For the week, US indices gained 1%-2.1%. In Europe, FTSE surged 2.9%, CAC was up 0.2% while DAX fell 0.3%. In Asia, Hang Seng fell 0.2% while other markets gained between 0.4%-2.2% with India on the top. WTI crude gained 1.2% to $46.09 per barrel. Dollar index fell 1.1% to 90.81.

 

 

AT HOME

 

Benchmark indices ended higher by a percent after a volatile session, hitting fresh record intraday as well as closing highs. Sensex settled at 45079, up 446 points while Nifty added 124 points to finish at 13258. Nifty mid-cap and small-cap indices rose 0.4% each. All the NSE sectoral indices ended in green with Bank and FMCG indices leading the tally, up 2% and 1.4% respectively.

 

FIIs net bought stocks and index futures worth Rs 2970 cr and 897 cr respectively but net sold stock futures worth Rs 288 c. DIIs were net sellers to the tune of Rs 1972 cr.

 

Rupee appreciated 10 paise to end at 73.80/$.

 

For the week, Sensex and Nifty rose 2.1% and 2.2% respectively, extending the winning streak to fifth straight week. Nifty mid-cap and small-cap indices also rose for the fifth consecutive week.

 

OUTLOOK

 

Today morning, Asian markes are trading with cuts of 0.2%-1.4% with Hang Seng leading the losses. SGX Nifty is suggesting around 30 points lower start for our market.

 

In Friday's report we had said that 13275 continued to be next upside target upon crossover of which, 13500 would be the next major target. We had also advised holding on to long positions with the stop-loss of 12980.

 

Nifty touched a high of 13280 before closing at 13258 and is set to open

 

13400, where an upward sloping trendline adjoining recent tops on the hourly chart is placed, is the immediate upside target, upon crossover of which, 13500 would be the next level to eye.

 

Immediate support on the hourly chart has moved up to 13107, with the stop-loss of which, trading longs should be held on to.