TRAIL STOP-LOSS TO 13771

 

TRAIL STOP-LOSS TO 13771

 

WORLD MARKETS

 

After a positive start and fresh record highs, US indices retreated to end in red with Dow and S & P 500 down 0.2% each and Nasdaq off 0.4%.

 

Senate Majority Leader Mitch McConnell blocked Senate Minority Leader Chuck Schumer’s effort to fast-track the bill, passed by the House late Monday, that would increase direct payments to Americans to $2,000 from $600.

 

Data on S&P CoreLogic Case-Shiller 20-city home price index showed U.S. home prices rose in October by the most in more than six years.

 

Meanwhile, U.S. confirmed its first case of the faster spreading coronavirus strain that was initially discovered in the U.K.

 

Brent crude rose 30 cents, or 0.6%, to $51.16 a barrel, and WTI crude futures settled 38 cents, or 0.8%, higher at $48.

 

Dollar index fell 0.3% to 90.06. Spot gold rose 0.4% to $1,877.75 per ounce.

 

In Europe, FTSE and CAC rose 1.6% and 0.4% respectively while DAX fell 0.2%.

 

AT HOME

 

Sensex and Nifty rose 0.6% and 0.4% respectively, extending the winning streak to fifth straight day and hitting yet another record high. Sensex added 259 points to settle at 47613 while Nifty finished at 13932, up 59 points. Nifty mid-cap and small-cap indices however ended marginally in the red. BSE Bankex and Finance indices climbed 1.4% and 1.1% respectively, becoming top gainers among the sectoral indices while Metal and Power indices were the top losers, down 1.3% and 0.8% respectively.

 

FIIs net bought stocks worth Rs 2350 cr but net sold index futures and stock futures worth Rs 287 cr and 1019 cr respectively. DIIs were net sellers to the tune of Rs 2010 cr.

 

Rupee appreciated 8 paise to end at 73.42/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.8% and 0.3% respectively while Nikkei is off 0.6%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 14000 and 14100 continued to be next upside targets and had advised trailing stop-loss in long positions to 13600.

 

Nifty touched a high of 13967 before closing at 13932 and is set to open near yesterday’s high today.

 

14000, followed by 14100, continue to be upside levels to eye.

 

13771, the lower end of the gap created by Monday's gap-up opening, which also coincides with the two tops made last to last week, is the immediate support now, with the stop-loss of which, trading longs should be held on to.