TRAIL STOP-LOSS TO 12150

TRAIL STOP-LOSS TO 12150

WORLD MARKETS

US indices climbed 0.5%-0.7%, shrugging off news of U.S. President Donald Trump’s impeachment and hitting a fresh record highs.

The Democrat-led House of Representatives voted Wednesday to impeach Trump and he will now face a trial in the Republican-controlled Senate. Markets largely shrugged off impeachment news as the chances of a trial conviction in the Senate are low.

Weekly jobless claims fell to 234,000 from 252,000 the week before, the expected figure being 225000. The Philadelphia Federal Reserve’s business conditions index fell to 0.3 in December from 10.4 in the previous month. Economists expected the index to slip to 8.

A new North American trade deal was passed yesterday with the United States-Mexico-Canada Agreement replacing the North American Free Trade Agreement.

Brent crude gained 37 cents to settle at $66.54 per barrel, for its sixth straight day of gains. U.S. West Texas Intermediate crude gained 29 cents to settle at $61.22 per barrel.

In Europe, FTSE and CAC rose 0.4% and 0.2% respectively while DAX eased 0.1%. The Bank of England held its main interest rate steady at 0.75% with its rate-setting committee voting 7-2 in favor of keeping the current level, and cut its fourth-quarter U.K. GDP growth forecast from +0.2% to +0.1%.

AT HOME

Benchmark indices gained a third of a percent, hitting yet another record high and extending the winning streak to third straight day. Sensex added 115 points to settle at 41673 while Nifty finished at 12259, up 38 points. BSE mid-cap and small-cap indices rose 0.2% and 0.1% respectively. BSE Telecom and Energy indices climbed 2% and 1.4% respectively, becoming top gainers among the sectoral indices while Finance and Capital Goods indices fell the most, losing 0.3% each.

FIIs net bought stocks, index futures and stock futures worth Rs 739 cr, 819 cr and 334 cr respectively. DIIs were net sellers to the tune of Rs 494 cr.

Rupee depreciated 6 paise to end at 71.03/$.

OUTLOOK

Today morning, Nikkei is off 0.3%, Hang Seng is flat while Shanghai is up 0.1%. SGX Nifty is suggesting a flattish start for our market.

Just to reiterate, 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 12268 before closing at 12259.

Upward sloping trendline adjoining tops made in September and November, which is now placed around 12350, continues to be next major upside target to eye.

Immediate support on the hourly chart has moved up to 12150, with the stop-loss of which, trading longs can be held on to.