NIFTY ACHIEVES 12080 TARGET; STAY LONG WITH THE STOP-LOSS OF 11950

NIFTY ACHIEVES 12080 TARGET; STAY LONG WITH THE STOP-LOSS OF 11950

WORLD MARKETS

Dow and S & P 500 ended flat while Nasdaq rose 0.2% on Friday after China and the U.S. agreed to a phase one trade deal.

The trade deal will include a rollback of some of the China tariffs and halts additional levies set to take effect on Sunday. China agreed to buy $40 billion in U.S. agricultural goods. That’s below the $50 billion White House was reportedly looking for. U.S. will roll back some of the prior duties on $120 billion worth of Chinese imports to 7.5% from 15% but keep a 25% levy on $250 billion in goods in place. Investors were hoping for more than just a partial rollback of some tariffs.

Brent as well as WTI crude gained 1.5% each to $65.19 and $60.07 per barrel respectively to their highest level in nearly three months as investors cheered progress in resolving the U.S.-China trade dispute and a decisive general election result in Britain.

European markets gained 0.5%-1.1%. U.K. Prime Minister Boris Johnson's Conservative Party won a commanding majority in the country's general election, granting Johnson the power to drive through his Brexit deal and take the U.K. out of the EU before the January 31 deadline.

AT HOME

Benchmark indices soared 1% each, extending the winning streak to third straight day and closing at the highest level since 28th November. Sensex added 428 points to settle at 41009 while Nifty finished at 12086, up 114 points. Nifty mid-cap and small-cap indices gained 1% and 0.8% respectively. Except 1.6% lower Telecom index, all the BSE sectoral indices ended in green with Metal index leading the tally, up 2.3%, followed by 1.7% higher Realty and IT indices.

FIIs net bought stocks, index futures and stock futures worth Rs 116 cr, 1044 cr and 2 cr respectively. DIIs were net buyers to the tune of Rs 385 cr.

Rupee appreciated 2 paise to end at 70.81/$.

Dr Reddy fell 2.8% on news that a competitor, Amneal Pharmaceticals, received the approval to launch first generic version of Nuvaring, a limited competition drug Dr Reddy has been developing.

For the week, Sensex and Nifty gained 1.4% each.

OUTLOOK

Today morning, Nikkei and Shanghai are down 0.1% each while Hang Seng is off 0.6%. SGX Nifty is suggesting a flattish start for our market.

Readers would recall that we had turned our view on Nifty positive afer 11980 hurdle was taken out. We had also given an upside target of 12080 which was achieved on Friday itself.

12158, the top made in November, is the next target/resistance to eye. Once that is taken out, upward sloping trendline adjoining tops made in September and November, which is placed around 12300, would be the next major target.

Immediate support on the hourly chart is placed around 11950, with the stop-loss of which, trading longs should be held on to.