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.