11940-11980 CONTINUES TO BE NEXT TARGET ZONE; 11640 IMMEDIATE SUPPORT

11940-11980 CONTINUES TO BE NEXT TARGET ZONE; 11640 IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.3%-0.4%, with the S & P 500 hitting an all-time high, after the U.S. Federal Reserve cut interest rates for the third time this year and Fed chair Powell  signaled it would be a while before the central bank hikes rates.

The U.S. central bank lowered rates for the third time this year by 25 basis points. The central bank also removed a key phrase from its statement that said it will “act as appropriate” to sustain the current expansion.

Powell said in a press conference after the decision that the central bank would need to see a “really significant” rise in inflation before the Fed thought about hiking.

The Commerce Department said U.S. GDP grew by 1.9% in the third quarter, topping expected growth of 1.6%. U.S. private payrolls increased by 125,000 in October, topping estimate of 100,000. However, September payrolls were trimmed down by 42,000 to 93,000.

Apple reported fourth quarter earnings that bested expectations while signaling a big holiday quarter ahead.

Brent crude fell $1.07 to settle at $60.52 a barrel while U.S. WTI crude fell 48 cents to $55.06 after data showed a steep rise in US crude inventory.

In Europe, FTSE and CAC rose 0.3% and 0.4% respectively while DAX fell 0.2%. The U.K. confirmed it will hold a general election on December 12 after Prime Minister Boris Johnson gained approval from Parliament Tuesday night.

AT HOME

Sensex and Nifty gained 0.6% and 0.5% respectively, extending the winning streak to fourth straight day and closing at the highest level since 4th June and 4th July respectively. Sensex settled at 40051, up 220 points while Nifty added 57 points to finish at 11844. BSE mid-cap and small-cap indices gained 0.6% and 0.4% respectively. BSE IT and Teck indices climbed 1.5% and 1.4% respectively, becoming top gainers among the sectoral indices while Consumer Durables and Realty indices were the top losers, down 1% and 0.9% respectively.

FIIs net bought stocks worth Rs 7192 cr which included Rs 5751 cr on account of HDFC life deal. FIIs net sold index futures and stock futures worth Rs 997 cr and 153 cr. DIIs were net sellers to the tune of Rs 186 cr.

Rupee depreciated 4 paise to end at 70.88/$.

OUTLOOK

Today morning, Asian markets are trading with gains of upto 0.7% and SGX Nifty is suggesting about 50 points higher start for our market.

Readers would recall that after Nifty achieved 11798 target, we have been working with next target zone of 11940-11980.

Yesterday, after touching a high of 11883, Nifty closed at 11844 and is set to open near 11900 today.

11940-11980 continues to be next target zone.

Immediate support on the hourly chart has moved up to 11640, with the stop-loss of which, trading longs should be held on to.

NIFTY ACHIEVES 11798 TARGET; TRAIL STOP-LOSS TO 11630

NIFTY ACHIEVES 11798 TARGET; TRAIL STOP-LOSS TO 11630

WORLD MARKETS

Dow and S & P 500 fell 0.1% each while Nasdaq slipped 0.6%, looking ahead to key Federal Reserve meeting.

Indices fell intraday after Reuters reported the phase one trade deal may not be signed at a November summit in Chile. The report, however, cited a U.S. administration official who said: “If it’s not signed in Chile, that doesn’t mean that it falls apart. It just means that it’s not ready.”

Google-parent Alphabet fell 2.2% after the company posted earnings that missed analyst expectations. On the flip side, Merck and Pfizer earnings topped estimates.

Brent lost 3 cents to $61.54 a barrel while WTI fell 27 cents, or 0.5%, to settle at $55.54.

European markets, except 0.2% higher CAC, ended with cuts of upto 0.3%.

AT HOME

Sensex and Nifty soared 1.5% and 1.4% respectively, extending the winning streak to third straight day and closing at the highest level since 4th July and 5th July respectively. Sensex settled at 39831, up 581 points while Nifty added 160 points to finish at 11786. BSE mid-cap and small-cap indices gained 1.1% and 0.6% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 877 cr, 1243 cr and 227 cr respectively. DIIs were net buyers to the tune of Rs 145 cr.

Rupee appreciated 4 paise to end at 70.84/$.

OUTLOOK

Today morning, Asian markets are trading flat to modestly lower and SGX Nifty is suggesting about 25 points higher start for our market.

At the risk of repeating, we have been bullish on Nifty ever since 11320 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss. On last count we had said that upon decisive crossover of 11695 hurdle, 11772-11798, the gap created by a gap down opening on 8th July, would be the next target.

Nifty yesterday crossed 11695 hurdle and surged all the way to 11809 before closing at 11786, achieving 11798 target and vindicating our view. The benchmark is set to open above 11800 today.

11940-11980 is the next target zone for Nifty. Immediate support on the hourly chart has moved up to 11630, with the stop-loss of which, trading longs can be held on to.

The Fed is largely expected to slash interest rates by 25 basis points. That would mark its third rate cut for this year.

NIFTY SET TO CHALLENGE 11695 HURDLE AGAIN; 11490 CONTINUES TO BE NEAREST SUPPORT

NIFTY SET TO CHALLENGE 11695 HURDLE AGAIN; 11490 CONTINUES TO BE NEAREST SUPPORT

WORLD MARKETS

US indices climbed 0.5%-1%, with the S & P 500 hitting a record high as markets cheered strong earnings and progress on U.S.-China trade.

U.S. and Chinese officials said they were “close to finalizing” some parts of a trade agreement. Chinese state-run news agency Xinhua also pointed to progress being made on trade.

Microsoft rose 2.5% on news the company won a $10 billion cloud contract from the Defense Department. AT&T gained more than 4% after announcing a three-year plan that includes the addition of two new board members and the sale of up to $10 billion worth of non-core businesses in 2020. Alphabet climbed nearly 2% ahead of earnings.

Brent futures fell 40 cents, or 0.6% to settle at $61.62, while WTI fell 85 cents, or 1.5%, to $55.81 a barrel, breaking four day winning streak on the back of weak Chinese industrial data.

European markets rose upto 0.4%.

AT HOME

Friday was yet another day of consolidation as benchmark indices ended little changed after wild intraday moves. Sensex added 37 points to settle at 39058 while Nifty finished at 11583, up 1 point. BSE mid-cap index ended falt while small-cap index fell 0.4%. BSE Bankex and IT indices gained 1.1% and 1% respectively, becoming top gainers among the sectoral indices while Consumer Durables and Telecom indices tumbled 1.8% and 1.7% respectively, becoming top losers.

On Muhurat trading on Sunday, Sensex and Nifty gained 0.5% and 0.4% respectively, extending the winning streak to second straight day. Sensex settled at 39250, up 192 points while Nifty added 43 points to finish at 11627. BSE mid-cap and small-cap indices climbed 0.7% and 1.2% respectively.

For the week, Sensex and Nifty fell 0.1% and 0.3% respectively.

Tata Motors soared 18% after reporting better-than-expected earnings due to rebound in JLR performance. JLR EBIDTA margin, at 13.8%, hit 16-quarter high. JLR reported PBT of 621 cr as against loss of Rs Rs 823 cr.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 0.5% and 0.1% respectively while Shanghai is off 0.3%. SGX Nifty is suggesting about 50 points higher start for our market.

After achieving 11695 target on 22nd October, Nifty has been in a consolidation mode over past five sessions. We have been mentioning through this phase that 11490 is the immediate support, with the stop-loss of which, trading longs can be held on to. The benchmark, after testing 11490 support on Friday, has rebounded to 11627 and is set to open above 11650 today.

11695 continues to be immediate hurdle, a decisive crossover of which is required for a fresh upmove. If that happens, 11772-11798, the gap created by a gap down opening on 8th July, would be the next target.

11490 continues to be immediate support, with the stop-loss of which, existing longs can be held on to.

Bharti Airtel will report its quarterly earnings today.

11695-11490 CONTINUES TO BE IMMEDIATE RANGE

11695-11490 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

Dow fell 0.1% while S & P 500 and Nasdaq rose 0.2% and 0.8% respectively on the back of fall in 3M and rise in Microsoft shares tracking quarterly earnings.

3M pulled back 4.1% after it cut its full-year earnings forecast, overshadowing stronger-than-expected results for the quarter. Microsoft rose 2% as results beat estimates.

Durable goods orders fell 1.1% in September, notching their largest drop in four months.

European Central Bank kept its policy rates unchanged and kept its forward guidance that suggested the bank’s main interest rates will remain at their current or lower levels until there’s strong evidence of a pick-up in prices.

European markets gained 0.6%-0.9%. The IHS Markit October flash services PMI estimate for October came in at 51.8, slightly below the expected 51.9, while manufacturing PMI came in at 45.7 against a forecast of 46.0. October’s composite PMI flash estimate was 50.2, up from 50.1 in September but lower than the 50.3 forecast.

Brent crude gained 55 cents to settle at $61.74 while WTI rose 26 cents to settle at $56.23 a barrel, extending the winning streak to third straight day.

AT HOME

After rising nearly two third of a percent in the initial trade, Sensex and Nifty tumbled around eight tenth of a percent from the top of the day to end lower by 0.1% and  0.2% respectively. Sensex settled at 39020, down 38 points while Nifty lost 22 points to finish at 11582. BSE mid-cap and small-cap indices fell 0.4% and 0.1% respectively. BSE Power index and Bankex slipped 1.2% each, becoming top losers among the sectoral indices while Energy and Realty indices were the top gainers, up 1.6% and 1.1% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 73 cr, 327 cr and 369 cr respectively. DIIs were net sellers to the tune of Rs 739 cr.

Rupee depreciated 10 paise to end at 71.01/$.

Maruti reported a weak performance despite lower tax expense and higher other income.

It posted 39.4% y-o-y dip in net profit at Rs 1358.6 cr. Revenue fell 24.3% to Rs 16985 cr, EBITDA was down 53.2% at Rs 1606 cr and margin contracted 580 bps to 9.5%.

ITC met street expectations on most counts. Net profit surged 36.2% y-o-y to Rs 4023 cr. Revenue rose 5.3% to Rs 11871 cr, EBITDA was up 8.5% at Rs 4562 cr and margins expanded 110 bps to 38.4%. Cigarette volume growth stood at 3%.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 20 points lower start for our market.

After achieving 11695 target last Friday, Nifty is in a consolidation mode. For past couple of days we have been mentioning that 11695 continues to be important immediate hurdle, a decisive crossover of which is required for a fresh upmove. We have also been saying that 11490 is the immediate support on the hourly chart , with the stop-loss of which, existing longs can be held on to.

Yesterday, the benchmark, after touching a high of 11680, slipped to 11534 before closing at 11582.

Just to reiterate, 11695 continues to be important immediate hurdle, a decisive crossover of which is required for a fresh upmove. If that happens, 11772-11798, the gap created by a gap down opening on 8th July, would be the next target.

Meanwhile, 11490 continues to be immediate support on the hourly chart , with the stop-loss of which, existing longs can be held on to.

SBI, Tata Motors and Marico will report their quarterly earnings today.

11695-11490 CONTINUES TO BE IMMEDIATE RANGE

11695-11490 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

Dow fell 0.1% while S & P 500 and Nasdaq rose 0.2% and 0.8% respectively on the back of fall in 3M and rise in Microsoft shares tracking quarterly earnings.

3M pulled back 4.1% after it cut its full-year earnings forecast, overshadowing stronger-than-expected results for the quarter. Microsoft rose 2% as results beat estimates.

Durable goods orders fell 1.1% in September, notching their largest drop in four months.

European Central Bank kept its policy rates unchanged and kept its forward guidance that suggested the bank’s main interest rates will remain at their current or lower levels until there’s strong evidence of a pick-up in prices.

European markets gained 0.6%-0.9%. The IHS Markit October flash services PMI estimate for October came in at 51.8, slightly below the expected 51.9, while manufacturing PMI came in at 45.7 against a forecast of 46.0. October’s composite PMI flash estimate was 50.2, up from 50.1 in September but lower than the 50.3 forecast.

Brent crude gained 55 cents to settle at $61.74 while WTI rose 26 cents to settle at $56.23 a barrel, extending the winning streak to third straight day.

AT HOME

After rising nearly two third of a percent in the initial trade, Sensex and Nifty tumbled around eight tenth of a percent from the top of the day to end lower by 0.1% and  0.2% respectively. Sensex settled at 39020, down 38 points while Nifty lost 22 points to finish at 11582. BSE mid-cap and small-cap indices fell 0.4% and 0.1% respectively. BSE Power index and Bankex slipped 1.2% each, becoming top losers among the sectoral indices while Energy and Realty indices were the top gainers, up 1.6% and 1.1% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 73 cr, 327 cr and 369 cr respectively. DIIs were net sellers to the tune of Rs 739 cr.

Rupee depreciated 10 paise to end at 71.01/$.

Maruti reported a weak performance despite lower tax expense and higher other income.

It posted 39.4% y-o-y dip in net profit at Rs 1358.6 cr. Revenue fell 24.3% to Rs 16985 cr, EBITDA was down 53.2% at Rs 1606 cr and margin contracted 580 bps to 9.5%.

ITC met street expectations on most counts. Net profit surged 36.2% y-o-y to Rs 4023 cr. Revenue rose 5.3% to Rs 11871 cr, EBITDA was up 8.5% at Rs 4562 cr and margins expanded 110 bps to 38.4%. Cigarette volume growth stood at 3%.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 20 points lower start for our market.

After achieving 11695 target last Friday, Nifty is in a consolidation mode. For past couple of days we have been mentioning that 11695 continues to be important immediate hurdle, a decisive crossover of which is required for a fresh upmove. We have also been saying that 11490 is the immediate support on the hourly chart , with the stop-loss of which, existing longs can be held on to.

Yesterday, the benchmark, after touching a high of 11680, slipped to 11534 before closing at 11582.

Just to reiterate, 11695 continues to be important immediate hurdle, a decisive crossover of which is required for a fresh upmove. If that happens, 11772-11798, the gap created by a gap down opening on 8th July, would be the next target.

Meanwhile, 11490 continues to be immediate support on the hourly chart , with the stop-loss of which, existing longs can be held on to.

SBI, Tata Motors and Marico will report their quarterly earnings today.

11695 CONTINUES TO BE IMMEDIATE HURDLE; 11490 NEAREST SUPPORT

11695 CONTINUES TO BE IMMEDIATE HURDLE; 11490 NEAREST SUPPORT

WORLD MARKETS

US indices gained 0.2%-0.3% after digesting some more corporate earnings.

Caterpillar closed 1.2% higher, after falling more than 6% in the premarket as results missed estimate. Boeing climbed 1% despite earnings miss as the airplane maker said it will stick to its timeline for the return of the 737 Max. Texas Instrument tumbled 7.5% after posting fourth-quarter guidance well below market estimates.

Brent crude futures gained $1.39, or 2.3% while WTI futures gained $1.49, or 2.7%, to settle at $55.97 per barrel after government data showed a surprise draw in U.S. crude stocks.

In Europe, U.K. lawmakers voted in favor of Prime Minister Boris Johnson’s Brexit plan, but rejected his attempt to fast-track legislation to take the country out of the EU by the end of the month. Johnson said the next step would be to wait for the EU to respond to a request to delay the current Brexit deadline of Oct. 31.

In Europe, FTSE and DAX rose 0.7% and 0.3% respectively but CAC and Italy fell 0.1% and 0.6% respectively.

AT HOME

It was a day of consolidation as benchmark indices ended modestly higher after a choppy session. Sensex added 95 points to settle at 39058 while Nifty finished at 11604, up 16 points. BSE mid-cap index fell 0.1% while Small-cap index rose 0.2%. BSE Telecom index tumbled 3%, becoming top Nifty loser, followed by 1.4% lower Oil & Gas index. Auto and IT indices gained 1.2% each, becoming top gainers.

FIIs net sold stocks and index futures worth Rs 213 cr and 346 cr respectively but net bought stock futures worth Rs 257 cr. DIIs were net sellers to the tune of Rs 137 cr.

Rupee appreciated 2 paise to end at 70.91/$.

L&T's proit and margins beat estimates but revenue was a miss. It reported 13.3% y-o-y rise in Q2 net profit at Rs 2527 cr. Revenue rose 15.2% to Rs 35328 cr, EBITDA was up 13.5% at Rs 4021 cr and margin fell 10 bps to 11.4%. Order inflow grew by 20% y-o-y. The company said it is on track to meet revenue guidance of 12-15% and order inflow guidance of 10-12% for FY20.

HCL Tech's revenue were in-line with estimate but margin was a beat. Company also raised revenue guidance and announced 1:1 bonus.  It reported 19.4% q-o-q rise in net profit at Rs 2651 cr. Revenue rose 6.7% to Rs 17528 cr, EBIT surged 24.6% to Rs 3497 cr and margin expanded 290 bps to 20%. The company raise its FY20 constant currency revenue guidance from 14-16% to 15-17% and maintained EBIT margin guidance at 18.5-19.5%.

Hero Motocorp too beat estimates on all counts with margins hitting a 4 quarter high. Revenue fell 16.7% y-o-y to Rs 875 cr, EBITDA was down 20.1% at Rs 1101 cr, margin contracted 70 bps to 14.5% and net profit fell 10.4% to Rs 874.8 cr.

Bajaj Auto was a beat on all the counts. Operating margin, at 16.6%, improved 120 bps q-o-q and were at a 4 quarter high. Realisation rose 6% q-o-q.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 0.5% and 0.2% respectively while Shanghai is off 0.2%. SGX Nifty is suggesting about 30 points higher start for our market.

After achieving 11695 target last week, Nifty is in a consolidation mode. As we have been mentioning, 11695 continues to be important immediate hurdle, a decisive crossover of which is required for a fresh upmove. If that happens, 11772-11798, the gap created by a gap down opening on 8th July, would be the next target.

Meanwhile, 11490 continues to be immediate support on the hourly chart , with the stop-loss of which, existing longs can be held on to.

Maruti Suzuki and ITC will report their quarterly earnings today.

NIFTY RETREATS AFTER ACHIEVING 11695 TARGET

NIFTY RETREATS AFTER ACHIEVING 11695 TARGET

WORLD MARKETS

US indices fell 0.2%-0.7% after some disappointing earnings including McDonald's and Travelers.

McDonald’s fell 5% after earnings and revenue for the previous quarter that missed expectations. Travelers plunged more than 8% after reporting earnings that badly missed estimates. On the flip side, United Technologies and Procter & Gable rose more than 2% after their results topped expectations.

U.K. lawmakers voted to reject a limited time frame for reviewing legislation related to Britain’s withdrawal from the European Union. It now means that the U.K. is almost certainly not going to leave the U.K. on October 31— the current deadline, and the EU may provide an extension to prevent a no-deal Brexit occurring.

Brent oil settled 1% higher at $59.59 a barrel, while WTI crude gained 1.6% to settle at $54.16 per barrel following a report that OPEC and its allies would consider deeper production cuts when they meet in December.

In Europe, FTSE and CAC rose 0.7% and 0.2% respectively while DAX was little changed as U.K. lawmakers debated Prime Minister Boris Johnson’s EU Withdrawal Agreement Bill ahead of two crucial votes.

AT HOME

Sensex and Nifty slipped 0.8% and 0.6% respectively, breaking 6-day winning streak. Sensex settled at 38963, down 334 points while Nifty finished at 11588, down 73 points. BSE mid-cap index fell 0.1% while small-cap index gained 0.5%. BSE IT and Teck indices nosedived 7% and 6.3% respectively, becoming top loser among the sectoral indices, while Healthcare and Consumer Durable indices were the top gainers, up 1.6% and 1.5% respectively.

FIIs net sold stocks worth Rs 558 cr but net bought index futures and stock futures worth Rs 1328 cr and 318 cr respectively. DIIs were net sellers to the tune of Rs 985 cr.

Rupee appreciated 21 paise to end at 70.93/$.

Infosys tumbled after a whistleblower complaint alleged “unethical practices” by its top executives to boost company's profits and revenue.

Axis Bank reported a loss of Rs 112 cr due to a one-time tax impact of Rs 2138 cr. Excluding the extraordinary item, the bank's net profit would have jumped 157% y-o-y to Rs 2026 cr. NII rose 16.6% to Rs 3518 cr. Asset quality improved as Gross NPA ratio improved 22 bps q-o-q to 5.03% and net NPA ratio improved 5 bps to 1.99%. Slippages rose 3.8% q-o-q to Rs 4983 cr. Loan growth was strong.

Kotak Bank saw marginal rise in bad loans. Bajaj Finance saw over-dues rise across segments.

OUTLOOK

Today morning, Nikkei is up 0.2% while Hang Seng and Shanghai are marginally in the red. SGX Nifty is suggesting a flattish start for our market.

At the risk of repeating, we have been bullish on Nifty ever since 11325 hurdle was taken out on 9th October and have been advising holding on to long positions with a trailing stop-loss since then.

On last count, when Nifty took out 11630 hurdle, we had said that 11695, the top made in September, is the next target as well as resistance to eye.

Nifty yesterday touched a high of 11714, achieving 11695 target and vindicating our view. The benchmark however, could not sustain above it and slipped to end at 11588.

11695 continues to be important immediate hurdle, a decisive crossover of which is required for a fresh upmove. If that happens, 11772-11798, the gap created by a gap down opening on 8th July, would be the next target.

Meanwhile, immediate support on the hourly chart has moved up to 11490, with the stop-loss of which, existing longs can be held on to.

L & T, Bajaj Auto, Hero Motocorp and HCL Tech will report their quarterly earnings today.

NIFTY NEARLY ACHIEVES 11695 TARGET; VINDICATES OUR VIEW

NIFTY NEARLY ACHIEVES 11695 TARGET; VINDICATES OUR VIEW

WORLD MARKETS

US indices gained 0.2%-0.9% boosted by optimism around U.S.-China trade talks as well as the corporate earnings season.

Over the weekend, Chinese Vice Premier Liu He said Beijing would work with the U.S. to address one another’s trade concerns. He also said both sides have made “substantial progress” on trade.

Brent crude futures settled down 47 cents, or 0.8%, to $58.94 a barrel. WTI crude futures settled 47 cents, or 0.9%, lower at $53.31 a barrel.

European markets rose 0.2%-0.9%. In the U.K.’s Parliament on Monday, Prime Minister Boris Johnson was prevented from holding a key vote on the Brexit withdrawal deal he recently agreed with Brussels.

AT HOME

It was a strong finish to a rocking week as Sensex and Nifty indices climbed six tenth of a percent each, extending the winning streak to sixth straight day and closing at the highest level since 5th July and 17th July respectively. Sensex settled at 39298, up 246 points while Nifty added 75 points to finish at 11661. BSE mid-cap and small-cap indices soared 1.8% and 1.6% respectively. All the BSE sectoral indices ended in green with Power and Capital Goods indices leading the gains, up 2.6% and 2% respectively.

FIIs net bought stocks and stock futures worth Rs 37 cr and 656 cr respectively but net sold index futures worth Rs 560 cr. DIIs were net buyers to the tune of Rs 587 cr.

Rupee appreciated 2 paise to end at 71.14/$.

For the week, Sensex and Nifty surged 3.1% each, extending the winning streak to second straight week.

Reliance Industries reported a record Rs 11000 cr net profit for the quarter ended September. Revenue were slightly below estimate. Petchem segment posted strong growth. Gross refining margin stood at $9.4/bbl, in-line with estimate and higher than $8.1 reported in the previous quarter. Jio was a mixed bag as margin beat estimate but subscriber addition slowed.

Exit polls predicted a huge win for BJP in Maharashtra and Haryana.

Infosys ADR plunged 12% overnight after a whistle-blower complained about alleged accounting irregularities at the company.

OUTLOOK

Today morning, Asian markets are trading flat to modestly higher and SGX Nifty is suggesting about 25 points lower start for our market.

At the risk of repeating, we have been bullish on Nifty ever since 11325 hurdle was taken out on 9th October and have been advising holding on to long positions with a trailing stop-loss since then.

On last count, when Nifty achieved 11495 target, we had said that 11630, where a downward sloping trendline adjoining tops made in June and July is placed, was the next upside target, upon crossover of which, 11695, the top made in September, would be the next target. 

Nifty, on Friday, after achieving 11630 target, went all the way to 11685, nearly achieving 11695 target and vindicating our view.

11695, the top made in September, continues to be important immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 11772-11798, the gap created by a gap down opening on 8th July, would be the next target. Above 11798, 11982, the top made in July, would be the next target/resistance to eye.

Meanwhile, immediate support on the hourly chart has moved up to 11470, with the stop-loss of which, existing longs can be held on to.

Axis Bank, Kotak Bank, Bajaj Finance, Bajaj Finserve and Asian Paints will report their quarterly earnings today.

NIFTY SURGES TOWARDS 11630 TARGET AFTER ACHIEVING 11495

NIFTY SURGES TOWARDS 11630 TARGET AFTER ACHIEVING 11495

WORLD MARKETS

US indices gained 0.1%-0.4% following strong earnings from companies such as Netflix and Morgan Stanley and digesting news of European Union and the U.K. striking a deal on Brexit.

U.K. Prime Minister Boris Johnson, via tweeter, said “we have a great new Brexit deal” and called on British lawmakers to back the deal when it’s put before Parliament on Saturday. Meanwhile, European Commission President Jean-Claude Juncker tweeted that the deal was a “fair and balanced” one.

In Europe, FTSE rose 0.2% while other markets fell between 0.1%-0.5%.

Brent crude rose 52 cents to $59.94 and U.S. WTI crude gained 65 cents to settle at $53.99 a barrel.

AT HOME

Sensex and Nifty soared 1.2% and 1.1% respectively, extending the winning streak to fifth straight day and closing at the highest level since 23rd September. Sensex added 453 points to settle at 39052 while Nifty finished at 11586, up 122 points. BSE mid-cap and small-cap indices climbed 1.8% and 0.9% respectively. All the BSE sectoal indices ended in green with Auto index on the top, up 2.9%, followed by 1.8% higher Consumer Discretionary Goods & Services index.

FIIs net bought stocks, index futures and stock futures worth Rs 1159 cr, 794 cr and 1235 cr respectively. DIIs were net sellers to the tune of Rs 512 cr.

Tata Motors soared after Britain and the European Union said that they have struck an outline Brexit deal, though it must still be formally approved by the bloc and ratified by the European and U.K. Parliaments.

OUTLOOK

Today morning, Asian markets are trading with gains of upto half a percent but SGX Nifty is suggesting about 25 points lower start for our market.

Readers would recall that after Nifty achieved 11390 target, we had given 11495 as next target, above which, we had said, 11640, where a downward sloping trendline adjoining tops made in June and July is placed, would be the next target.

Yesterday, Nifty, after achieving 11495 target, went all the way to 11599 before closing at 11586.

11630, where a downward sloping trendline adjoining tops made in June and July is placed, continues to be next upside target to eye. It that is taken out, 11695, the top made in September, would be the next target.

Meanwhile, immediate support on the hourly chart has moved up to 11405, with the stop-loss of which, trading longs can be held on to.

Reliance Industries will report its quarterly earnings today.