TRAIL STOP-LOSS TO 18130

 

TRAIL STOP-LOSS TO 18130

 

WORLD MARKETS

 

Dow, dragged down by a 3% drop in Disney’s stock, ended marginally in the red while S & P 500 and Nasdaq gained 0.3% and 0.8% respectively to extend their winning streak to fourth consecutive day as Facebook, Amazon, Apple, Netflix and Google-parent Alphabet all closed higher.

 

U.S. industrial production fell 1.3% in September, as against expectation of a 0.2% gain.

 

US 10-year treasury yield rose nearly 3 bps 1.60%. Dollar index was little changed at 93.95. Spot gold was down 0.1% at $1,765.14 per ounce.

 

China’s gross domestic product grew 4.9% in third quarter, its lowest in a year and lower than the expected 5.2% expansion. Industrial production rose 3.1% in September, missing expectations of a 4.5% increase.

 

Brent crude futures fell 62 cents or 0.7% at $82.26 a barrel while WTI inched up 12 cents, or 0.1%, to $82.40 a barrel.

 

European markets fell 0.4%-0.8%.

 

AT HOME

 

Equities continued their dream run in unchartered territory as benchmark indices surged three fourth of a percent, extending the winning streak to seventh consecutive day and hitting fresh record highs. Sensex settled at 61765, up 459 points while Nifty added 138 points to finish at 18477. Nifty mid-cap and small-cap indices rose 1.2% and 0.7% respectively. BSE Metal index surged 4.3%, becoming top gainer among the sectoral indices, followed by 2.8% higher Utilities index. Healthcare and Telecom indices were the top losers, down 0.8% and 0.6% respectively.

 

FIIs net bought stocks worth Rs 512 cr but net sold index futures and stock futures worth Rs 506 cr and 1321 cr respectively. DIIs were net sellers to the tune of Rs 1704 cr.

 

Rupee depreciated 8 paise to end at 75.34/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-1.3% and SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 18450-18500 was the next target zone and had advised trailing stop-loss in long positions to 18060.

 

Nifty surged to touch high of 18543 before closing at 18477. The benchmark is set to open above 18500 today.

 

Upon crossover of yesterday's high, 18543, 18650 would be the next target for Nifty; Immediate support on the hourly chart has moved up to 18130, with the stop-loss of which, trading longs can be held on to.

 

40300-40500 is the next target zone for Banknifty; 38800 is immediate support.

 

HUL, ACC and Nestle will report their quarterly earnings today.