14000 NEARLY ACHIEVED; TRAIL STOP-LOSS TO 13800

 

14000 NEARLY ACHIEVED; TRAIL STOP-LOSS TO 13800

 

WORLD MARKETS

 

US indices rose 0.1%-0.2%, with the Dow closing at a record, in a light volume penultimate session of 2020.

 

Brent crude futures gained 0.5% to settle at $51.34 per barrel, and WTI crude advanced 0.8% to $48.40 per barrel.

 

The dollar index touched 89.56, it's lowest since April 2018, before closing 0.4% lower at 89.68. Spot gold rose 0.3% to $1,883.41 per ounce.

 

Meanwhile, the vaccine developed by the University of Oxford and AstraZeneca received authorization for emergency use in the U.K. Still, the U.K. government outlined plans to impose stricter coronavirus restrictions on millions of people across England as a new strain of the virus spreads across the country.

 

European markets fell 0.1%-0.7%. Lawmakers in the U.K. approved on the post-Brexit trade deal reached by negotiators on Christmas Eve.

 

AT HOME

 

After falling around eight tenth of a percent from the initial highs, Sensex and Nifty recouped all the losses in second half to end higher by 0.3% and 0.4% respectively. Both extended the winning streak to sixth consecutive day and hit fresh record highs. Sensex settled at 47746, up 133 points while Nifty added 49 points to finish at 13981. Nifty mid-cap and small-cap indices rose 0.2% and 0.7% respectively. BSE Basic Materials and Auto indices climbed 1.6% and 1.4% respectively, becoming top gainers among the sectoral indices while Telecom index was the top loser, down 0.7%, followed by 0.2% lower Teck and IT indices.

 

FIIs net bought stocks and stock futures worth Rs 1825 cr and 270 cr respectively but net sold index futures worth Rs 468 cr. DIIs were net sellers to the tune of Rs 587 cr.

 

Rupee appreciated 12 paise to end at 73.30/$.

 

OUTLOOK

 

Markets in Japan and South Korea are closed on Thursday for a holiday. Shanghai and Hang Seng are up 1% and 0.6% respectively. SGX Nifty is suggesting around 10 points higher start for our market.

 

In yesterday's report we had said that 14000, followed by 14100, continued to be upside levels to eye and had advised trailing stop-loss in long positions to 13771.

 

Nifty touched a high of 13997 before closing at 13981, nearly achieving 14000 target and vindicating our view. The benchmark is set to open near 14000 today.

 

14100 is the next upside target to eye.

 

Immediate support on the hourly chart has moved up to 13800, with the stop-loss of which, trading longs should be held on to.