NIFTY ON TRACK TO ACHIEVE 7980 TARGET; TRAIL STOP LOSS TO 7850

NIFTY ON TRACK TO ACHIEVE 7980 TARGET; TRAIL STOP LOSS TO 7850

WORLD MARKETS                             

US indices, weighed down by a renewed slide in oil prices, ended with modest cuts.

Nymex oil fell $1.29 or 3.4% to $36.81 a barrel. Brent oil hovered near 11-year low, down $1.28 at $36.61 a barrel.

European markets, led lower by energy stocks, lost 0.4%-1.3%.

Earlier, Shanghai Composite fell 2.5% after the data over the weekend showed profits earned by Chinese industrial companies in November fell for the sixth-straight month.

AT HOME

Benchmark indices climbed eight tenth of a percent yesterday, starting the last week of the calendar 2015 on a positive note and closing at the highest level since 1st December. Sensex settled at 26034, up 195 points while Nifty added 64 points to finish at 7925. BSE mid-cap and small-cap indices gained 0.1% and 0.5% respectively. BSE Healthcare and Utilities indices gained 1.3% and 1.2% respectively, becoming top gainers among the sectoral indices while Telecom and Metal indices lost 1% and 0.8% respectively.

FIIs net sold stocks and index futures worth Rs 303 cr and 90 cr respectively but net bought stock futures worth rs 610 cr. DIIs were net buyers to the tune of Rs 988 cr.

Rupee appreciated 2 paise to end at 66.19/$.

OUTLOOK

Today morning, Asian markets are trading mixed and SGX Nifty is suggesting about 15 points higher opening for our market.

Readers would recall that we had initiated a buy on Nifty when immediate hurdle of 7700 was taken out. We were working with an initial target of 7850, which was the 34-DMA at that time. We had also said that after the crossover of 7850, 7980, the top made in early December, would be the next target to eye.

After achieving 7850 target on 17th December, Nifty consolidated for couple of days and then took out this hurdle last Wednesday. The benchmark kept up the momentum on the first day of the new week by closing at 7925 yesterday and is on track to achieve 7980 target.

Immediate support on the hourly chart has moved up to 7850, with the stop loss of which trading longs should be held on to. Some profit booking is advised around 7980.