12103 ABOVE 12038; STAY LONG WITH THE STOP-LOSS OF 11910

12103 ABOVE 12038; STAY LONG WITH THE STOP-LOSS OF 11910

WORLD MARKETS

US indices fell 0.4%-0.5% following a report that an anticipated “phase one” trade deal between the U.S. and China may not be completed by the end of 2019.

The report suggested that the completion of a partial trade deal could be pushed into 2020 as China seeks more extensive tariff rollbacks.

Markets are also keeping an eye on the impeachment proceedings in Washington as the uncertainty around them could hinder Trump’s negotiating position with China.

Target shares jumped more than 14%, after quarterly results beat expectations and company also raised its full-year profit outlook. Lowe’s advanced 3.9% on stronger-than-forecast earnings and an improved profit forecast for fiscal 2019.

Minutes of the October Fed meeting showed Fed officials see little need to cut rates any further.

WTI crude climbed $1.90 to $57.11 a barrel while Brent crude futures rose $1.56 to settle at $62.47 after data showed a smaller-than-expected build in US inventory and Yemen’s Houthi rebels claimed they intercepted a Saudi warplane.

European markets fell 0.2%-0.8%.

AT HOME

Sensex and Nifty gained half a percent for the second consecutive day with Sensex hitting a fresh intraday record high. Sensex added 181 points to settle at 40651 while Nifty finished at 11999, up 59 points. BSE mid-cap and small-cap indices rose 0.2% and 0.1% respectively. BSE Energy and Healthcare indices climbed 2.1% and 2% respectively, becoming top gainers among the sectoral indices while Realty index was the top loser, down 1.4%, followed by 0.6% lower Consumer Durables index.

FIIs net bought stocks worth Rs 567 cr but net sold index futures and stock futures worth Rs 818 cr and 43 cr respectively. DIIs were net buyers to the tune of Rs 183 cr.

Rupee depreciated 10 paise to end at 71.81/$.

The Union Cabinet approved strategic stake sale in five state-run companies including BPCL, SCI, Concor, THDCIL and NEEPCO.

SEBI yesterday said that in case a company defaults on loan repayment to a bank or an financial institution-including mutual funds, insurance companies and other lenders-the company will have to disclose that default within 31 days.

SEBI also decided to reduce the time a company should take to complete a rights offer, from 55 days to 31 days. It also enhanced the net worth requirement for portfolio managers to Rs 5 cr from Rs 2 cr and doubled the minimum PMS investment limit to Rs 50 lac.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-1.4% and SGX Nifty is suggesting about 30 points lower star for our market.

In yesterday's report we had reiterated the view that upon crossover of 11973, 12034, the top made last week, would be the next target to eye.

Nifty crossed 11973 hurdle and went all the way to 12038 before closing at 11999 and is set to open lower today.

Upon crossover of 12038, the top made yesterday, 12103, the top made in June, would be next upside target/resistance to eye.

Immediate support on the hourly chart has moved up to 11910, with the stop-loss of which, trading longs should be held on to.