11160 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 10780

11160 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 10780

WORLD MARKETS

Nasdaq soared 2.5%, S & P 500 rose 0.8% while Dow ended flat as technology stocks surged. A slew of positive news on the vaccine front also aided the sentiment. S & P 500 turned positive for the year.

Amazon led the tech stocks higher, rising 7.9% for its best day since December 2018. IBM gained 4.7% in extended trading after the company reported better-than-expected second-quarter earnings. N

Pfizer and BioNTech reported early positive data on a joint coronavirus vaccine candidate. Another candidate from Oxford University and AstraZeneca also showed a positive immune response in an early trial.

Brent crude rose 15 cents, or 0.4%, to $43.29 per barrel, while West Texas Intermediate rose 22 cents, or 0.54%, to settle at $40.81 per barrel.

In Europe, FTSE fell half a percent while DAX and CAC gained 1% and 0.5% respectively.

AT HOME

Sensex and Nifty soared 1.1% each, extending the winning streak to fourth consecutive day and closing at the highest level since 6th March and 5th March respectively. Sensex settled at 37418, up 398 points while Nifty added 120 points to finish at 11022. BSE mid-cap and small-cap indices gained 0.9% and 1% respectively. BSE IT and Teck indices climbed 2.3% and 2.2% respectively, becoming top gainers among the sectoral indices while Healthcare and Power indices were the top losers, down 0.7% and 0.2% respectively.

FIIs net bought stocks worth Rs 1710 cr but net sold index futures and stock futures worth Rs 68 cr and 275 cr respectively. DIIs were net sellers to the tune of Rs 1522 cr.

Rupee appreciated 9 paise to end at 74.92/$.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.4%-1.6% and SGX Nifty is suggesting around 90 points higher start for our market.

In yesterday's report we had said that upon crossover of 10933, 11075, which is the target of the triangle breakout witnessed on Friday, would be the next level to eye and had advised holding on to long positions with the stop-loss of 10740.

Nifty crossed 10933 hurdle and surged all the way to 11038 before closing at 11022 and is set to open near 11100 today.

Today’s higher start will achieve 11075 that we talked above. Next target to watch out would be  11160, where an upward sloping trendline adjoining recent tops on the daily chart is placed.

Immediate support on the hourly chart has moved up to 11780, with the stop-loss of which, trading longs should be held on to.

HUL, Axis Bank, Bajaj Finance and Bajaj Finserve will report their quarterly earnings today.