NIFTY NEARS 11495 TARGET; TRAIL STOP-LOSS TO 11300

NIFTY NEARS 11495 TARGET; TRAIL STOP-LOSS TO 11300

WORLD MARKETS

US indices soared 0.9%-1.2% as the corporate earnings season got off to a strong start.

J.P. Morgan Chase jumped 3% to a record after its third-quarter numbers topped analyst expectations. UnitedHealth, another Dow member, surged 8.2%, after quarterly profit topped expectations by 13 cents per share. Johnson & Johnson rose 1.6% as higher sales of cancer and other prescription drugs boosted quarterly numbers.

Comments from European Union negotiator Michel Barnier that a Brexit deal between the bloc and the U.K. is still possible this week also boosted the sentiment.

In Europe, FTSE ended flat while DAX and CAC rose more than a percent

Brent crude fell $0.68, or 1.15%, to $58.67 a barrel, while U.S. WTI crude settled down 78 cents, or 1.5%, at $52.81.

AT HOME

Benchmark indices climbed seven tenth of a percent each, extending the winning streak to third straight day. Sensex settled at 38506, up 291 points while Nifty added 87 points to finish at 11428. BSE mid-cap index gained 0.7% but small-cap index fell 0.1%. BSE Auto and Meatl indices soared 2.4% and 1.6% respectively, becoming top gainers among the sectoral indices while Telecom index tumbled 2.2%, becoming top loser, followed by 0.8% lower Teck index.

FIIs net bought stocks, index futures and stock futures worth Rs 436 cr, 744 cr and 358 cr respectively. DIIs were net buyers to the tune of Rs 929 cr.

Rupee depreciated 31 paise to end at  71.54/$.

India's trade deficit narrowed to $11 bn in September as exports remained stagnant and imports saw a drop of around $3 bn from August.

IMF cut India's FY20 GDP forecast to 6.1%, down 90 bps from its earlier forecast.

Wipro largely met estimates in Q2. Constant currency growth was slightly below expectations but margins beat estimates. The company raised growth guidance for the second half of the financial year, pushing the upper-en closer to 3%.

OUTLOOK

Today morning, Nikkei is up more than a percent while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting about 35 points higher start for our market.

In yesterday's report we had reiterated 11495 target, which is the 67% retracement level of the 11695-11090 fall and had advised holding on to trading longs with the stop-loss of 11250.

Nifty soared all the way to 11462 before closing at 11428 and is set to open above 11450 today.

11495, the 67% retracement level of the 11695-11090 fall, continues to be next upside target/resistance to eye. If that is taken out, 11640, where a downward sloping trendline adjoining tops made in June and July is placed, would be the next target.

Meanwhile, immediate support on the hourly chart has moved up to 11300, with the stop-loss of which, trading longs can be held on to