11980 ABOVE 11695; TRAIL STOP-LOSS TO 11381

11980 ABOVE 11695; TRAIL STOP-LOSS TO 11381

WORLD MARKETS

US indices ended little changed as weak economic data out of Europe stoked worries over the state of the global economy.

Manufacturing activity in Germany fell to its lowest level since the financial crisis this month, data from IHS Markit showed. Germany’s services sector also grew at its slowest pace in nine months. Overall, manufacturing in the euro zone fell to a more than six-year low while services grew at is slowest pace in eight months, IHS Markit said.

The U.S. manufacturing sector hit a five-month high in September, while the services sector grew at its fastest pace in two months, according to data from IHS Markit.

Brent futures rose 40 cents to $64.68 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 0.95% to settle at $58.64.

European markets fell 0.3%-1.1% on weak German data and collapse of Thomas Cook.

AT HOME

Bull rampage continued as benchmark indices soared just under 3% to close at the highest level since 17th September, marking a two-month-high. Sensex added 1075 points to settle at 39090 while Nifty finished at 11600, up 326 points. BSE mid-cap and small-cap indices climbed 3.1% and 2.7% respectively. BSE Capital Goods index and Bankex galloped 6.6% and 5.7% respectively, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, down 3.3% and 3.1% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 2684 cr, 1693 cr and 805 cr respectively. DIIs were net buyers to the tune of Rs 292 cr.

Rupee appreciated 1 paise to end at 70.93/$.

ZEE Entertainment plunged following reports that a lender had sold a part of the company’s pledged shares in the open market.

OUTLOOK

Today morning, Asian markets are trading with modest gains and SGX Nifty is suggesting about 60 points higher start for our market.

In yesterday's report we had said that 11360-11400 was the immediate  resistance zone, upon crossover of which, 11620, the 67% retracement level of the entire fall, would be the next upside target.

Nifty, opened above the 11400 mark and surged all the way to 11694 before closing at 11600.

Once 11694, the top made yesterday, is taken out, 11981, the top made in July 2019, would be the next upside target.

Meanwhile 11381, the lower end of the gap created by yesterday's gap up opening, would now act as immediate support, with the stop-loss of which, trading longs can be held on to.