TRAIL STOP-LOSS TO 12095

TRAIL STOP-LOSS TO 12095

WORLD MARKETS

Dow and S & P 500 ended marginally lower to break five-day winning streak. Nasdaq ended marginally in the green.

FedEx nosedived more than 9% on disappointing quarterly numbers.

Brent futures gained 12 cents to trade at $66.22 a barrel, while U.S. WTI lost 1 cent to settle at $60.93.

In Europe, FTSE gained 0.2% while DAX and CAC fell 0.5% and 0.2% respectively.

The German Ifo business climate survey showed that business morale rose more than expected in December to hit a six-month high. British inflation held steady at a three-year low of 1.5% in November while euro zone inflation accelerated to 1% year-on-year in November from 0.7% in October.

AT HOME

Benchmark indices climbed half a percent, notching fresh record highs. Sensex added 206 points to settle at 41558 while Nifty finished at 12221, up 57 points. BSE mid-cap and small-cap indices however fell 0.2% and 0.05% respectively. BSE Metal and Healthcare indices gained 0.8% and 0.7% respectively, becoming top gainers among the sectoral indices while Utilities and Power indices were the top losers, down 0.8% and 0.7% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1837 cr, 667 cr and 208 cr respectively. DIIs were net sellers to the tune of Rs 1268 cr.

Rupee ended unchanged at 70.97/$.

GST Council, in its 38th meeting, chose not to tamper with the rates despite pressure to boost revenues. Council meanwhile, voted for uniform rate of 28% on lotteries across the country.

Tata Motors slipped on news that the National Company Law Appellate Tribunal (NCLAT) restored former Tata group Chairman Cyrus Mistry as executive chairman of Tata Group and also held the appointment of N. Chandra as executive chairman illegal.

OUTLOOK

In a latest development, a majority of the House of Representatives have voted to impeach President Donald Trump for abuse of power. The vote marks only the third time in American history that the House has impeached a president.

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points lower start for our market.

At the risk of repeating, we had turned our view on Nifty positive after 11980 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

After the benchmark achieved 12158 target, we have been working with next target of around 12330.

The benchmark yesterday touched a high of 12237 before closing at 12221 and is set to open near 12200 today.

Upward sloping trendline adjoining tops made in September and November, which is now placed around 12340, continues to be next major upside target to eye.

Immediate support on the hourly chart has moved up to 12095, with the stop-loss of which, trading longs can be held on to.