12080 NEXT UPSIDE TARGET; STAY LONG WITH THE STOP-LOSS OF 11890

12080 NEXT UPSIDE TARGET; STAY LONG WITH THE STOP-LOSS OF 11890

WORLD MARKETS

US indices climbed 0.7%-0.8%, notching fresh record highs, following news that US and China have agreed to a phase one trade deal in principle, pending U.S. President Donald Trump's approval.

Media reports suggested that the White House has offered to scrap the next round of tariffs on Chinese exports to the U.S. that are set to take effect on Sunday and has also proposed slashing existing duties on $360 billion in Chinese products by 50%.

Trump had earlier tweeted "Getting VERY close to a BIG DEAL with China.”

British Pound surged 2.26% to $1.346 after an exit poll showed U.K. Prime Minister Boris Johnson's Conservative Party winning a clear majority of parliamentary seats in Thursday's general election.

Brent futures rose 67 cents, or 1%, to $64.39 a barrel while WTI crude futures gained 42 cents, or 0.7%, to settle at $59.18.

European markets gained 0.4%-1%. The ECB kept its rates unchanged following new President Christine Lagarde’s first monetary policy meeting. The Ifo Institute on Thursday confirmed its 1.1% growth forecast for the German economy, while revising its 2021 projection up from 1.4% to 1.5%. Euro zone industrial output declined by 0.5% month-on-month in October and was down 2.2% from the same period last year.

AT HOME

Sesnex and Nifty gained 0.4% and 0.5% respectively, extending the winning streak to second straight day. Sensex settled at 40581, up 169 points while Nifty finished at 11971, up 61 points. Nifty mid-cap and small-cap indices gained 0.8% and 0.5% respectively. BSE Metal index climbed 2.4%, becoming top gainer among the sectoral indices, followed by 1.5% higher Industrials index. IT and Teck indices were the top losers, down 1.5% and 1.4% respectively.

FIIs net sold stocks and stock futures worth Rs 684 cr and 64 cr respectively but net bought index futures worth Rs 720 cr. DIIs were net buyers to the tune of Rs 810 cr.

Rupee ended unchanged at 70.83/$.

Retail inflation rose to a 40-month high of 5.54% in November as against 4.62% in October. Core CPI remained unchanged at 3.5%. Food inflation surged to 10%. Industrial Production contracted for the third consecutive month by 3.8% in October as against contraction of 5.1% in September.

Infosys slipped after the Schall Law Firm, a US-based shareholder rights litigation firm, announced filing of a class action lawsuit against Infosys in a US court.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.5%-2.3% and SGX Nifty is suggesting about 25 points higher start for our market.

In yesterday's report we had mentioned that 11980, where 20-DMA was placed, was the immediate hurdle, upon crossover of which, 12080, the top made on 5th December, would be the next target to eye.

Nifty crossed 11980 hurdle and touched a high of 12005 before closing at 11971.

12080, the top made on 5th December, continues to be next upside target to eye.

11890, the 67% retracement level of the recent 11832-12005, will act as immediate support, with the stop-loss of which, trading longs can be held on to.