NIFTY ON TRACK TO ACHIEVE 12400 TARGET; TRAIL STOP-LOSS TO 12170

NIFTY ON TRACK TO ACHIEVE 12400 TARGET; TRAIL STOP-LOSS TO 12170

WORLD MARKETS

US indices gained 0.3%-1%, with the S & P 500 and Nasdaq hitting fresh record highs, amid news the U.S. will remove China from a list of currency manipulating countries.

The decision to take China out of the currency manipulator list comes more than five months after the country was added to it.

Brent crude fell 78 cents, or 1.2%, to settle at $64.20 per barrel, while WTI crude fell 1.6%, or 96 cents, to $58.08.

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

AT HOME

Benchmark indices rose six tenth of a percent, extending winning streak to third straight day and hitting fresh record highs. Sensex added 260 points to settle at 41860 while Nifty finished at 12330, up 73 points. BSE mid-cap and small-cap indices climbed 0.9% and 1% respectively. All the BSE sectoral indices ended in green with Realty index leading the tally, up 2.1%, followed by 1.8% higher IT, Teck and Telecom indices.

FIIs net bought stocks and index futures worth Rs 68 cr and 208 cr respectively but net sold stock futures worth Rs 94 cr. DIIs were net buyers to the tune of Rs 47 cr.

Rupee appreciated 7 paise to end at 70.86/$.

Retail inflation in December soared to a 5-year high of 7.35%, up from 5.54% in November. Core CPI rose to 3.7% from 3.5%.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.3%-0.7% and SGX Nifty is suggesting about 30 points higher start for our market.

In yesterday's report we had reiterated the view that 12400, where an upward sloping trendline adjoining tops made in August 2018 and June 2019 was placed, continued to be the next target/resistance to eye.

Nifty touched a high of 12337 before closing at 12330 and is set to open above 12350 today.

12400, where an upward sloping trendline adjoining tops made in August 2018 and June 2019 is placed, continues to be the next target/resistance to eye. Above 12400, 12430, where an upward sloping trendline adjoining recent tops on daily chart is placed, would be the next target.

With today’s upmove, immediate support on the hourly chart would have moved up to 12170, with the stop-loss of which, trading longs can be held on to.

Wipro and Indusind Bank will report their quarterly earnings today.