TRAIL STOP-LOSS TO 14000

 

TRAIL STOP-LOSS TO 14000

 

WORLD MARKETS

 

US indices rose 0.6%-1%, with Energy stock leading following surge in crude oil prices and awaiting results from Georgia runoff elections.

 

WTI as well as Brent crude surged nearly 5% each to $49.93 and $53.60 per barrel, following a surprise announcement by Saudi Arabia of a 1 million barrel per day production cut beginning in February and extending through March. Meanwhile, OPEC and its oil-producing allies, known as OPEC+, agreed to hold output largely steady in February.

 

U.S. President Trump signed an executive order banning transactions with eight Chinese software applications. That included WeChat Pay and Ant Group’s Alipay.

 

ISM manufacturing index for December rebounded to 60.7, the highest level since August 2018 and beating the estimated figure of 57.

 

The dollar index hovered close to April 2018 lowss. Spot gold rose 0.4% to $1,950.34 an ounce.

 

In Europe, except 0.6% higher FTSE, other markets fell 0.4%-0.6% on concerns over the speed of coronavirus vaccine deployment in mainland Europe, and a third national lockdown that has been imposed in England.

 

AT HOME

 

After falling around half a percent in the initial trade, benchmark indices jumped a percent to end higher by half a percent, hitting fresh record highs. Sensex settled at 48437, up 260 points while Nifty added 66 points to finish at 14199. Nifty mid-cap and small-cap indices rose 0.7% and 0.6% respectively.  BSE Bankex and Finance indices climbed 1.5% and 1.3% respectively; becoming top gainers among the sectoral indices while Metal and Energy indices slipped 1.4% and 1.1% respectively, becoming top losers.

 

FIIs net bought stocks worth Rs 986 cr but net sold index futures and stock futures worth Rs 176 cr and 111 cr respectively. DIIs were net sellers to the tune of Rs 490 cr.

 

Rupee depreciated 15 paise to close at 73.17/$.

 

OUTLOOK

 

Today morning, Shanghai is up 0.4% while Nikkei and Hang Seng are down 0.4% and 0.2% respectively. SGX Nifty a flattish start for our market.

 

In yesterday's report we had said that 14300 was the next upside level to eye and had advised trailing stop-loss in long positions to 13953.

 

Nifty, after falling to 14048, rebounded to 14215 before closing at 14199.

 

14300 continues to be next upside target, upon crossover of which, 14400 would be the next level to eye.

 

Immediate support on the hourly chart has moved up to 14000, with the stop-loss of which, trading longs should be held on to.