14000 NEARLY ACHIEVED; TRAIL STOP-LOSS TO 13800

 

14000 NEARLY ACHIEVED; TRAIL STOP-LOSS TO 13800

 

WORLD MARKETS

 

US indices rose 0.1%-0.2%, with the Dow closing at a record, in a light volume penultimate session of 2020.

 

Brent crude futures gained 0.5% to settle at $51.34 per barrel, and WTI crude advanced 0.8% to $48.40 per barrel.

 

The dollar index touched 89.56, it's lowest since April 2018, before closing 0.4% lower at 89.68. Spot gold rose 0.3% to $1,883.41 per ounce.

 

Meanwhile, the vaccine developed by the University of Oxford and AstraZeneca received authorization for emergency use in the U.K. Still, the U.K. government outlined plans to impose stricter coronavirus restrictions on millions of people across England as a new strain of the virus spreads across the country.

 

European markets fell 0.1%-0.7%. Lawmakers in the U.K. approved on the post-Brexit trade deal reached by negotiators on Christmas Eve.

 

AT HOME

 

After falling around eight tenth of a percent from the initial highs, Sensex and Nifty recouped all the losses in second half to end higher by 0.3% and 0.4% respectively. Both extended the winning streak to sixth consecutive day and hit fresh record highs. Sensex settled at 47746, up 133 points while Nifty added 49 points to finish at 13981. Nifty mid-cap and small-cap indices rose 0.2% and 0.7% respectively. BSE Basic Materials and Auto indices climbed 1.6% and 1.4% respectively, becoming top gainers among the sectoral indices while Telecom index was the top loser, down 0.7%, followed by 0.2% lower Teck and IT indices.

 

FIIs net bought stocks and stock futures worth Rs 1825 cr and 270 cr respectively but net sold index futures worth Rs 468 cr. DIIs were net sellers to the tune of Rs 587 cr.

 

Rupee appreciated 12 paise to end at 73.30/$.

 

OUTLOOK

 

Markets in Japan and South Korea are closed on Thursday for a holiday. Shanghai and Hang Seng are up 1% and 0.6% respectively. SGX Nifty is suggesting around 10 points higher start for our market.

 

In yesterday's report we had said that 14000, followed by 14100, continued to be upside levels to eye and had advised trailing stop-loss in long positions to 13771.

 

Nifty touched a high of 13997 before closing at 13981, nearly achieving 14000 target and vindicating our view. The benchmark is set to open near 14000 today.

 

14100 is the next upside target to eye.

 

Immediate support on the hourly chart has moved up to 13800, with the stop-loss of which, trading longs should be held on to.

 

TRAIL STOP-LOSS TO 13771

 

TRAIL STOP-LOSS TO 13771

 

WORLD MARKETS

 

After a positive start and fresh record highs, US indices retreated to end in red with Dow and S & P 500 down 0.2% each and Nasdaq off 0.4%.

 

Senate Majority Leader Mitch McConnell blocked Senate Minority Leader Chuck Schumer’s effort to fast-track the bill, passed by the House late Monday, that would increase direct payments to Americans to $2,000 from $600.

 

Data on S&P CoreLogic Case-Shiller 20-city home price index showed U.S. home prices rose in October by the most in more than six years.

 

Meanwhile, U.S. confirmed its first case of the faster spreading coronavirus strain that was initially discovered in the U.K.

 

Brent crude rose 30 cents, or 0.6%, to $51.16 a barrel, and WTI crude futures settled 38 cents, or 0.8%, higher at $48.

 

Dollar index fell 0.3% to 90.06. Spot gold rose 0.4% to $1,877.75 per ounce.

 

In Europe, FTSE and CAC rose 1.6% and 0.4% respectively while DAX fell 0.2%.

 

AT HOME

 

Sensex and Nifty rose 0.6% and 0.4% respectively, extending the winning streak to fifth straight day and hitting yet another record high. Sensex added 259 points to settle at 47613 while Nifty finished at 13932, up 59 points. Nifty mid-cap and small-cap indices however ended marginally in the red. BSE Bankex and Finance indices climbed 1.4% and 1.1% respectively, becoming top gainers among the sectoral indices while Metal and Power indices were the top losers, down 1.3% and 0.8% respectively.

 

FIIs net bought stocks worth Rs 2350 cr but net sold index futures and stock futures worth Rs 287 cr and 1019 cr respectively. DIIs were net sellers to the tune of Rs 2010 cr.

 

Rupee appreciated 8 paise to end at 73.42/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.8% and 0.3% respectively while Nikkei is off 0.6%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 14000 and 14100 continued to be next upside targets and had advised trailing stop-loss in long positions to 13600.

 

Nifty touched a high of 13967 before closing at 13932 and is set to open near yesterday’s high today.

 

14000, followed by 14100, continue to be upside levels to eye.

 

13771, the lower end of the gap created by Monday's gap-up opening, which also coincides with the two tops made last to last week, is the immediate support now, with the stop-loss of which, trading longs should be held on to.

 

14000 NEXT; TRAIL STOP-LOSS TO 13600

 

14000 NEXT; TRAIL STOP-LOSS TO 13600

 

WORLD MARKETS

 

US indices rose 0.7%-0.9% after President Trump signed a $900 billion coronavirus relief package, which includes a direct payment of $600 to most Americans, into law.

 

The signing came days after Trump demanded a $2,000 direct payment. The House yesterday passed a bill to increase the direct payments to $2,000, but the GOP-led Senate is unlikely to pass the measure.

 

Brent crude fell 43 cents, or 0.8%, to settle at $50.86 per barrel, while WTI crude settled 61 cents, or 1.3%, lower at $47.62 per barrel.

 

In Europe, DAX and CAC rallied 1.5% and 1.2% while FTSE was closed for the Boxing Day holiday. The 27 ambassadors from EU member nations yesterday formally approved the Brexit trade deal between the UK and the EU that was sealed on Dec. 24. The deal still needs to be approved by U.K. lawmakers before the Dec. 31 deadline.

 

AT HOME

 

Sensex and Nifty gained 0.8% and 0.9% respectively, extending the winning streak to 4th consecutive day and hitting fresh record intraday as well as closing highs. Sensex added 380 points to settle at 47353 while Nifty finished at 13873, up 123 points. Nifty mid-cap and small-cap indices surged 1.2% and 1.7% respectively. All the BSE sectoral indices ended in green with Realty index leading the tally, up 2.6%, followed by 2.2% higher Metal and Consumer Durables indices.

 

FIIs net bought stocks and index futures worth Rs 1589 cr and 432 cr respectively but net sold stock futures worth Rs 1025 cr. DIIs were net sellers to the tune of Rs 1387 cr.

 

Rupee appreciated 5 paise to end at 73.50/$.

 

OUTLOOK

 

Today morning, Nikkei is up 1.5%, followed by 0.9% higher Hang Seng and 0.2% up Shanghai. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 13850 followed by 14000 and 14100 are the upside targets to eye.

 

Nifty surged to 13885 before closing at 13873 and is set to open near 13900 today.

 

14000 and 14100 continue to be next upside targets.

 

Immediate support on the hourly chart has moved up to 13600, with the stop-loss of which, trading longs should be held on to.

 

STAY LONG WITH THE STOP-LOSS OF 13570

 

STAY LONG WITH THE STOP-LOSS OF 13570

 

WORLD MARKETS

 

US indices rose 0.2%-0.4% in the short trading session on Thursday before closing for long weekend.

 

House Republicans blocked Democrats’ attempt to pass $2,000 direct payments as the fate of a coronavirus relief package passed by Congress hangs in the balance.

 

The European Union and the United Kingdom on Thursday struck a historic trade deal, more than four years after the U.K. voted to leave the bloc.

 

Spot gold rose 0.3% to $1,877.41 per ounce.

 

In Europe, FTSE inched up 0.1% while CAC fell 0.1%. The German and Italian markets were closed for Christmas Eve.

 

For the week, Dow and Nasdaq rose 0.1% and 0.4% respectively while S & P 500 fell 0.2%.

 

AT HOME

 

Truncated trading week ended with a big Christmas Cheer as benchmark indices climbed 1.1% each, extending the winning streak to third straight day and cumulatively recouping all the losses suffered on Monday. Sensex settled at 46973, up 529 points while Nifty added 148 points to finish at 13749. Nifty mid-cap and small-cap indices rose 0.2% and 0.9% respectively. BSE Energy index and Bankex were the top gainers among the sectoral indices, rising 2.3% and 1.8% respectively whereas IT index was the top loser, down 0.6%, followed by 0.4% lower Realty and Teck indices.

 

FIIs net bought stocks and index futures worth Rs 1226 cr and 1102 cr respectively but net sold stock futures worth Rs 27 cr. DIIs were net sellers to the tune of Rs 1898 cr.

 

Rupee appreciated 22 paise to end at 73.54/$.

 

For the week, Sensex and Nifty ended flat.

 

OUTLOOK

 

US President Donald Trump signed a massive Covid relief and government funding bill into law yesterday, days after he suggested he could veto it.

 

Profits at Chinese industrial firms in November rose 15.5% as compared with a year earlier.

 

Today morning, except 0.2% lower Shanghai, other Asian markets are trading with gains of 0.2%-0.4%. SGX Nifty is suggesting around 35 points higher start for our market.

 

In Thursday's report we had said that 13650 continued to be immediate hurdle on the hourly chart, upon crossover of which, 13777, the top made Monday, would be the next upside target/resistance to eye.

 

Nifty opened above 13650 and surged all the way to 13771 before closing at 13749. The benchmark is set to open near 13800 today.

 

13850 followed by 14000 and 14100 are the upside targets to eye.

 

13570 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

13777 ABOVE 13650; 13350 IS THE IMMEDIATE SUPPORT

 

13777 ABOVE 13650; 13350 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 rose 0.4% and 0.1% respectively while Nasdaq fell 0.3%.

 

Indices slipped in last hour after President Trump vetoed a sweeping defense bill. The move came after he called the measure an unsuitable “disgrace” and urged lawmakers to make a number of changes, including larger direct payments to individuals and families. Democrats will attempt to pass $2,000 direct payments on Thursday.

 

U.S. jobless claims totaled 803,000, better than an estimate of 888,000. However, core durable goods and personal income both fell short of expectations in November. Consumer spending fell last month for the first time since April. U.S. new home sales were disappointing as well.

 

Brent crude gained $1.12, or 2.2%, to settle at $51.20 per barrel, while WTI crude futures settled 2.3%, or $1.10, higher at $48.12 per barrel. U.S. crude inventories fell by 562,000 barrels in the week to Dec. 18 to 499.5 million barrels.

 

The dollar index dropped 0.5%. Spot gold rose 0.7% to $1,872.03 per ounce.

 

European markets gained 0.7%-1.3% on reports that a Brexit trade deal was “imminent.

 

AT HOME

 

Tuesday's spectacular rebound got extended as benchmark indices surged 1% in yesterday's trade, cumulatively recouping nearly two-third of the steep losses suffered on Monday. Sensex settled at 46444, up 437 points while Nifty added 135 points to finish at 13601. Nifty mid-cap and small-cap indices soared 2.4% and 2.7% respectively. All the BSE sectoral indices ended in green today as well, with Realty and Metal indices leading the tally, up 4% and 2.5% respectively.

 

FIIs net bought stocks and stock futures worth Rs 536 cr and 190 cr respectively but net sold index futures worth Rs 1379 cr. DIIs were net sellers to the tune of Rs 1327 cr.

 

Rupee appreciated 8 paise to end at 73.76/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of upto 0.6% and SGX Nifty is suggesting around 35 points higher start for our market.

 

In yesterday's report we had said that 13650 continued to be immediate hurdle on the hourly chart while 13131, the bottom made Monday, which roughly coincided with 34-DMA, continued to be important immediate support.

 

Nifty surged to touch a high of 13619 before closing at 13601.

 

13650 continues to be immediate hurdle on the hourly chart, upon crossover of which, 13777, the top made Monday, would be the next upside target/resistance to eye.

 

13350, where a trendline adjoining recent bottoms on the hourly chart is placed, is the immediate support, upon breach of which 13131, the bottom made Monday, would be the crucial support.

 

13650 CONTINUES TO BE IMMEDIATE HURDLE; 13131 IMMEDIATE SUPPORT

 

13650 CONTINUES TO BE IMMEDIATE HURDLE; 13131 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.7% and 0.2% respectively while Nasdaq rose 0.5%

 

Congress passed a $ $900 billion pandemic aid package, which includes additional jobless benefits, more small business loans, direct payments of $600 and funds to distribute Covid-19 vaccines, among other provisions.

 

Economic data was weaker than expected, with U.S. existing home sales falling more than expected in November and the consumer confidence index lower than forecast.

 

Brent crude fell 83 cents, or 1.63%, to $50.08 per barrel, while WTI crude settled 95 cents, or 2%, lower at $47.02 per barrel.

 

Dollar index rose 0.6% to 90.675. Spot gold fell 0.7% to $1,862.55 per ounce.

 

European markets gained 0.6%-2%. U.K. GDP grew by a record 16% in the third quarter, after contracting 18.8% in the previous quarter. Sterling extended Monday’s losses, falling another 1% to around $1.33 as the U.K. and EU remain deadlocked over post-Brexit trade relations while the Dec. 31 deadline approaches.

 

AT HOME

 

After falling a percent in the first half, benchmark indices staged a grand rebound of 2% from the bottom of the day to end higher by a percent, recouping a third of yesterday's losses. Sensex settled at 46006, up 452 points while Nifty added 137 points to finish at 13466. Nifty mid-cap and small-cap indices rose 0.8% each. All the BSE sectoral indices ended in green with IT and Teck indices leading the tally, up 3.4% and 3% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1153 cr, 589 cr and 1190 cr respectively. DIIs were net sellers to the tune of Rs 662 cr.

 

Rupee depreciated 6 paise to end at 73.84/$.

 

OUTLOOK

 

US futures are trading lower after President Donald Trump expressed concerns about the new Covid-19 relief package.

 

Today morning, Asian markets are trading with gains of upto 0.5% but SGX Nifty is suggesting around 40 points lower start for our market.

 

In yesterday's report we had said that 13131, the bottom made Monday, was the immediate support while 13650 was the immediate hurdle on the hourly chart.

 

Nifty, after touching a low of 13192, rebounded sharply to end at 13466.

 

13650 continues to be immediate hurdle on the hourly chart.

 

13131, the bottom made Monday, which roughly coincides with 34-DMA, continues to be important immediate support.

 

13131, 13000 ARE SUPPORTS; 13650 IMMEDIATE HURDLE

 

13131, 13000 ARE SUPPORTS; 13650 IMMEDIATE HURDLE

 

WORLD MARKETS

 

After opening with cuts of 1.5%-2% on worries over the new Covid strain in the U.K., US indices saw a sustained recovery through the session which made Dow end 0.1% higher while S & P 500 and Nasdaq ended with cuts of 0.4% and 0.1% respectively.

 

Many European countries implemented travel restrictions on visitors from the U.K.

 

However, many experts, including those from the WHO, said the coronavirus vaccines from Pfizer and Moderna would likely be effective against the new variant and that Covid was mutating at a slower pace than the seasonal flu.

 

Meanwhile, vote on the $900 billion economic relief package, the agreement on which was reached on Sunday night, was expected on Monday night.

 

Brent crude fell $1.85, or 3.5%, to $50.41 a barrel while WTI crude slipped $1.36, or 2.8%, to settle at $47.74 per barrel.

 

Dollar index, after rising to 91.02, slipped to end at 90.04. Sterling sank sharply versus the dollar, falling 1.3% to around $1.3345.

 

European markets fell 1.7%-2.8%, monitoring a fast-spreading new variant of the coronavirus that has shut down much of the U.K.

 

AT HOME

 

Benchmark indices nosedived 3%, suffering the worst fall after 18th May and snapping 6-day winning streak. Sensex settled at 45553, down 1406 points while Nifty lost 432 points to finish at 13328. Nifty mid-cap and small-cap indices plunged 4.8% and 5% respectively. All the BSE sectoral indices ended in red with Metal and Oil & Gas indices leading the losses, down 6% each.

 

FIIs net sold stocks and index futures worth Rs 324 cr and 265 cr respectively but net bought stock futures worth Rs 1521 cr. DIIs were net buyers to the tune of Rs 486 cr.

 

Rupee depreciated 22 paise to end at 73.78/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-0.4% while SGX Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that 13773, the top made on Thursday as well as Friday, was the immediate hurdle and had advised trailing stop-loss in long positions to 13580.

 

Nifty broke 13580 support and plunged all the way to 13131 before closing at 13328. The benchmark is set to open near 13400 today.

 

13650 is the immediate hurdle on the hourly chart.

 

13131, the bottom made yesterday, is the immediate support, upon breach of which, 34-DMA, placed around 13000, would be the important support to eye.

 

ENGLISH VERSION OF MY ARTICLE IN TODAY'S SANDESH NEWSPAEPR

 

18 DECEMBER

With 1.8% upmove this week, Nifty extended the winning streak to seventh straight week. Nifty mid-cap and small-cap indices also rose for the seventh straight week, gaining 1.8% and 2% respectively. Realty and Pharma indices were the top gainers among the sectoral indices, putting on 3.9% and 3.2% respectively whereas PSU Bank index slipped 3.4%, becoming top loser, followed by 0.8% lower FMCG index.

Nifty (CMP: 13760): 13773, the top made on Thursday as well as Friday, is the immediate hurdle to eye, upon crossover of which, 13900 would be the next upside level to watch. On the way down, trendline adjoining recent bottoms on the hourly chart lands support around 13580, upon breach of which, 13450-13400 zone, where three earlier bottoms on the hourly chart are placed, would be the next support area. Meanwhile, trading longs should be held on to with the stop-loss of 13580.

BANKNIFTY (CMP: 30714): The index has been repeatedly getting resisted around the rising trendline adjoining recent tops on the hourly chart. Once this hurdle, placed around 30950, is taken out, 31400, followed by 31650 would be the upside targets. Immediate support is placed at 30200, with the stop-loss of which, long positions should be held on to.

BAJAJ AUTO (CMP: 3347): Bajaj Auto has broken out of a big trendline resistance adjoining tops made in 2018 and 2020 and can deliver returns of 20-25% over next 2-3 quarters. The stock also broke out on its hourly chart on Friday after a consolidation of 10 sessions. For short term, the stock should be bought at current rate for the target of 3500. The stop-loss should be placed at 3260.

ROUTE MOBILE (CMP: 1158): The stock, after hitting all-time high of 1275 on 7th December, was in a consolidation mode for past 8 sessions. On Friday, the stock broke out on it's hourly chart with volumes which were more than twice it's ten-day average volumes. The stock should be bought at current rate for the target of 1215. The stop-loss should be place at  1125.

NAVIN FLUORINE (CMP: 2621): After getting resisted at 2750 level twice , the stock corrected to make a bottom of 2496 on this Wednesday. From there, the stock has recovered and broke out on its hourly chart on Friday. The stock should be bought at current level for the target of 2750. The stop-loss should be placed at 2540.

JINDAL STAINLESS (CMP: 71.40): The stock, after making a top of 73 on 3rd December, has seen 9 sessions of correction and consolidation. On Thursday, it broke out of a triangle formation on its hourly chart with good volumes. The stock should be bought at current rate for the target of 75 and 77. The stop-loss should be placed at 68.

13773 IS IMMEDIATE HURDLE; TRAIL STOP-LOSS TO 13580

 

13773 IS IMMEDIATE HURDLE; TRAIL STOP-LOSS TO 13580

 

WORLD MARKETS

 

US indices fell 0.1%-0.4% respectively on Friday as lawmakers struggled to bridge differences on additional coronavirus stimulus measures.

 

Last-minute disputes preventing Congress from passing a relief deal include direct payments, small business loans and a boost to unemployment insurance. Later, on Friday night,  President Trump signed a two-day government funding bill into law while congressional leaders try to finalize a full-year funding and coronavirus relief package.

 

The House was supposed to meet again on Sunday at noon ET and will not vote earlier than 1 p.m. The Senate will return at 11 a.m. ET Saturday and will likely address nominations.

 

Brent as well as WTI crude gained 1.5% each to settle at $52.26 per barrel and $49.10 per barrel respectively.

 

U.S. dollar index rose 0.2% to trade at 90.001, rebounding from a more than two-year trough. Spot gold fell 0.1% to $1,883.39 per ounce.

 

European markets fell 0.2%-0.4% as British and European leaders struck a pessimistic tone about the prospect of a post-Brexit trade deal.  U.K. consumer confidence jumped to -26 in December from -33 in November, its sharpest climb in eight years. Germany’s closely watched Ifo business climate index came in at 92.1 to surpass expectations of 90.0.

 

Earlier, the Bank of Japan announced a six-month extension of its special program aimed at easing corporate financing pressures amid the coronavirus pandemic.

 

For the week, US indices gained 0.4%-3% with Nasdaq on the top. In Europe, FTSE was down 0.3% but CAC rose 0.4% and DAX surged 3.9%. Asian markets gained between 0.2%-1.9%.

 

WTI crude climbed 5.4% for its seventh straight up week. US dollar index fell 1.3% for its fourth negative week in five. Gold rose 2.5% for its third straight weekly gain.

 

AT HOME

 

After falling more than half a percent in the initial trade, benchmark indices saw a sustained recovery through the rest of the session to end higher by 0.15% each, extending the winning streak to sixth consecutive day. Sensex settled at 46960, up 70 points while Nifty added 20 points to finish at 13760. Nifty mid-cap and small-cap indices however fell 0.2% each. BSE IT and Teck indices climbed 1.7% and 1.3% respectively, becoming top gainers among the sectoral indices while Telecom index was the top loser, down 1.4%, followed by 0.7% lower Oil & Gas and Realty indices.

 

FIIs net bought stocks worth Rs 2721 cr but net sold index futures and stock futures worth Rs 196 cr and 392 cr respectively. DIIs were net sellers to the tune of Rs 2427 cr.

 

Rupee appreciated 4 paise to close at 73.55/$.

 

For the week, Sensex and Nifty gained 1.9% and 1.8% respectively, extending the winning streak to seventh consecutive week.

 

OUTLOOK

 

The U.S. Congress reached a $900 billion coronavirus relief package yesterday, following months of negotiations. Also, U.S. FDA approving Moderna’s Covid-19 vaccine for emergency use, making it the second vaccine approved in the U.S.

 

Meanwhile, British health secretary said yesterday that the government has imposed a strict Christmas lockdown in London and southeast England because a new strain of coronaviurs was "out of control".

 

Today morning, Asian markets are trading with cuts of 0.1%-0.8% and SGX Nifty is suggesting around 40 points lower start for our market.

 

In Friday's report we had said that 13773, the top made Thursday, was the immediate hurdle and had advised holding on to long positions with the stop-loss of 13530.

 

Nifty, after touching a low of 13658, rebounded to touch a high of 13773 before closing at 13760.

 

13773, the top made on Thursday as well as Friday, is the immediate hurdle to eye, upon crossover of which, 13900 would be the next upside level to watch.

 

On the way down, trendline adjoining recent bottoms on the hourly chart lands support around 13580, with the stop-loss of which, long positions can be held on to.