NIFTY TAKES OUT 11844 HURDLE; STAY LONG WITH THE STOP-LOSS OF 11755

NIFTY TAKES OUT 11844 HURDLE; STAY LONG WITH THE STOP-LOSS OF 11755

WORLD MARKETS

Dow and S & P 500 ended marginally in the red while Nasdaq gained 0.3%.

Indices had opened higher after Treasury Secretary Steven Mnuchin said he thinks “there’s a path” for the U.S. and China to complete a trade deal. Trump said that a U.S.-China trade deal was possible, but noted he is “very happy with where we are now".

US oil jumped 2.7% to $59.38 a barrel and Brent rose 2.1% to $66.42 after the Energy Information Administration said U.S. crude inventories fell by 12.8 million barrels last week.

European markets, except 0.1% higher DAX, fell 0.1%-0.3%.

AT HOME

Benchmark indices gained four tenth of a percent, extending the winning streak to second consecutive day. Sensex added 157 points to settle at 39592 while Nifty finished at 11847, up 51 points. BSE mid-cap and small-cap indices rose 0.8% and 0.5% respectively. BSE Metal and Power indices surged 2.9% and 2.2% respectively, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, down 0.6% each.

FIIs net bought stocks and stock futures worth Rs 106 cr and 917 cr respectively but net sold index futures worth Rs 839 cr. DIIs were net buyers to the tune of Rs 51 cr.

Rupee appreciated 19 paise to end at 69.15/$.

Metal stocks surged after U.S. Treasury Secretary Steven Mnuchin said that the U.S. and China were closing in on a trade deal.

OUTLOOK

Today morning, Nikkei and Hang Seng are up about half a percent while Shanghai is marginally lower. SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had reiterated the view that 11844, the top made last week, continues to be immediate hurdle, a crossover of which is required for the next leg of upmove.

Yesterday, Nifty surged to touch a high of 11871 before closing at 11847, crossing 11844 hurdle decisively.

As mentioned yesterday, next target to eye is 11945, which is the two-third retracement level of the recent 12103-11625 fall.

11755 is the immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.