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.