13700, 13760 ARE UPSIDE TARGETS; 13400 IMMEDIATE SUPPORT

 

13700, 13760 ARE UPSIDE TARGETS; 13400 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices climbed 1.1%-1.3%, cheering developments in Washington regarding a stimulus package. S & P 500 snapped 4-day losing streak.

 

House Speaker Nancy Pelosi invited congressional leaders, including Senate Majority Mitch McConnell, to discuss government funding and the relief package.

 

Also, a bipartisan group of lawmakers released a proposal for another round of economic relief on Monday evening. The first plan calls for $748 billion in spending for programs liked by both Republican and Democrats, including federal unemployment benefits and additional loans under the Paycheck Protection Program. A second $160 billion bill would include the more controversial areas of business liability protections and financial aid to state and local governments.

 

Meanwhile, the U.S. is recording at least 215,400 new Covid-19 cases and at least 2,300 virus-related deaths each day, based on a seven-day average.

 

WTI crude settled up 63 cents, or 1.3%, at $47.62; Brent crude rose 41 cents, or 0.8% to $50.70 a barrel.

 

Dollar index fell 0.3% to 90.47. Spot gold jumped 1.4% to $1,852.36 per ounce.

 

In Europe, FTSE fell 0.3%, DAX surged 1.1% and CAC was little changed.

 

AT HOME

 

After falling about eight tenth of a percent in the morning, benchmark indices recouped all the losses later to end marginally in the green. Sensex settled at 46263, up 10 points while Nifty added 10 points to finish at 13568. Nifty mid-cap and small-cap indices rose 0.5% and 0.2% respectively. BSE Consumer Durables and Finance indices rose 1.2% and 0.7% respectively, becoming top gainers among the sectoral indices while FMCG and Oil & Gas indices fell 1.2% and 1% respectively, becoming top losers.

 

FIIs net bought stocks worth Rs 2484 cr but net sold index futures and stock futures worth Rs 95 cr and 177 cr respectively. DIIs were net sellers to the tune of Rs 2667 cr.

 

Rupee depreciated 6 paise to end at 73.64/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of upto 0.6% and SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 13700 continued to be next upside target while 13400 was the immediate support, with the stop-loss of which, trading longs should be held on to.

 

Nifty, after touching a low of 13447, rebounded to end at 13568 and is set to open near 13600 today.

 

13700 continues to be next upside target, upon crossover of which 13760 would be the next level to eye.

 

13400 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

 

US Fed will release its statement with projections on the stance of monetary policy today. While the Fed’s long term view is expected to be improved due to the vaccine, the central bank is expected to sound very dovish.