Friday, November 29, 2019

12350 CONTINUES TO BE UPSIDE TARGET; TRAIL STOP-LOSS TO 12050


12350 CONTINUES TO BE UPSIDE TARGET; TRAIL STOP-LOSS TO 12050

WORLD MARKETS

US markets were shut yesterday for the Thanksgiving holiday.

European markets fell 0.2%-0.3%,  monitoring friction between the U.S. and China over the Hong Kong protests.

Brent crude fell 19 cents, or 0.3%, to $63.87 a barrel while WTI crude fell 33 cents, or 0.6%, to $57.78.

Euro zone economic sentiment index rebounded to 101.3 in November from 100.8 in October, the expected figure being 101.

AT HOME

Sensex and Nifty ended with gains of 0.3% and 0.4% respectively after a choppy expiry session, hitting fresh record intraday and closing highs. Sensex added 109 points to settle at 41130 while Nifty finished at 12151, up 50 points. BSE mid-cap and small-cap indices rose 1% and 0.4% respectively. Except 0.2% lower Auto index, all the BSE sectoral indices ended higher, with Telecom and Metal indices leading the tally, up 3.5% and 2.2% respectively.

FIIs net bought stocks and stock futures worth Rs 1009 cr and 1800 cr respectively but net sold index futures worth Rs 759 cr. DIIs were net sellers to the tune of Rs 155 cr.

Rupee depreciated 25 paise to end at 71.60/$.

For the November derivative series, Nifty climbed 2.3%, marking third consecutive positive series.

OUTLOOK

Today morning, Nikkei is flat while Hang Seng and Shanghai are down 0.9% and 0.2% respectively. SGX Nifty is suggesting a flattish start for our market.

At the risk of repeating, we have been working with target of 12350 ever since previous top of 12103 was taken out.

Nifty, yesterday touched a high of 12158 before closing at 12151.

12350, where an upward sloping trendline adjoining tops made in August 2018 and June 2019 is placed, continues to be the next major target/resistance to eye.

Immediate support on the hourly chart has moved up to 12050, with the stop-loss of which, trading longs should be held on to.

Q2 FY20 GDP data will be released today and is expected to show a growth of 4.6%, down from 5% in the previous quarter.

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