NIFTY ON TRACK TO ACHIEVE 11650 TARGET; TRAIL STOP-LOSS TO 11490

NIFTY ON TRACK TO ACHIEVE 11650 TARGET; TRAIL STOP-LOSS TO 11490

WORLD MARKETS

Dow fell 0.3%, S & P 500 ended flat while Nasdaq gained 0.4% yesterday, weighing the importance of the new political revelations surrounding Trump against the strength of corporate earnings. Energy and tech outperformed.

On Tuesday, two of Trump's key allies, Michael Cohen and Paul Manafort, were surrounded in legal troubles. Cohen, Trump's former personal lawyer, pleaded guilty to eight criminal charges, while Manafort, the president's former campaign manager, was convicted on eight counts in a separate case.

Target reported better-than-expected quarterly earnings on the back of its best same-store sales growth in 13 years.

Minutes of the latest Fed meeting showed central bank officials are concerned that the ongoing trade war is the biggest threat to an otherwise "strong" economy.

Oil jumped 3.1% to settle at 2-week high of $67.86 after US stockpiles fell last week by 5.8 million barrels, nearly four times the drop analysts expected. Brent rose 3% to $74.78.

Trade negotiators for the U.S. and China return to the table Wednesday US time for the first time in two months as the Trump administration readies a new round of tariffs on $16 billion worth of Chinese imports later Thursday.

Main European markets ended with modest gains but Italy fell 0.4%. Auto stocks fell sharply after Trump said at a campaign rally that the U.S. would slap 25% tariffs on "every car that comes into the United States from the European Union."

AT HOME

Benchmark indices ended flat to modestly higher after trading in a narrow range. Sensex settled at 38285, up 7 points while Nifty added 19 points to finish at 11570. BSE mid-cap and small-cap indices outperformed, gaining 0.5% and 0.3% respectively. BSE Power and Healthcare indices climbed 1.6% and 1.1% respectively, becoming top gainers among the sectoral indices while Reatly index tumbled 1.4%, becoming top loser, followed by 0.4% lower Metal and Consumer Durable indices.

FIIs net bought stocks worth Rs 254 cr but net sold index futures and stock futures worth Rs 368 cr and 99 cr respectively. DIIs were net buyers to the tune of Rs 198 cr.

Rupee appreciated 1 paise to end at 69.81/$.

OUTLOOK

Today morning, except a 0.1% lower Hang Seng, other Asian markets are trading with modest gains and SGX Nifty is trading around 11620, which is about 35 points higher compared to Tuesday's close of Nifty futures.

Readers would recall that after Nifty took out 11495 hurdle, we have been working with target of 11650.

On Tuesday, Nifty added 19 points to finish at 11570 and is set to open above 11600 today.

11650 continues to be next upside target to eye. Immediate support, after today's higher start, would have moved higher to 11490, with the stop-loss of which, trading longs should be held on to.