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.