11618 IS THE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 11270

 

11618 IS THE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 11270

 

WORLD MARKETS

 

US indices soared 1.7%-2.3% on optimism over President Trump’s health and the possibility of additional economic relief. This was the best performance for Dow in nearly 3-months and for S & P 500 and Nasdaq in nearly a month.

 

Trump left Walter Reed National Military Medical Center to return to the White House, where he will continue being treated for the coronavirus.

 

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke for an hour yesterday regarding another stimulus package but did not reach an agreement. Pelosi’s spokesman said that the two planned to speak again on Tuesday.

 

Brent crude rose $2.30, or 5.9%, to $41.57 a barrel while WTI crude gained $2.17, or 5.9%, to settle at $39.22 per barrel.

 

Dollar index fell 0.3% as risk sentiment was lifted by stimulus hopes. Spot Gold rose 0.7% to $1913 per ounce.

 

European markets rose 0.7%-1.2%.

 

AT HOME

 

Benchmark indices rose nearly three tenth of a percent, extending the winning streak to third straight day. Sensex settled at 38973, up 276 points while Nifty added 86 points to finish at 11503. BSE mid-cap index however fell 0.2% while small-cap index rose 0.4%. BSE IT index climbed 4.1%, becoming top gainer among the sectoral indices, followed by 3.2% higher Teck index. Telecom index was the top loser, down 1.3%, followed by 0.5% lower Utilities and Consumer Durables indices.

 

FIIs net bought stocks worth Rs 237 cr but net sold index futures and stock futures worth Rs 45 cr and 835 cr respectively. DIIs were net sellers to the tune of Rs 472 cr.

 

Rupee depreciated 14 paise to end at 73.29/$.

 

Shares of IT companies surged after TCS said it would consider buying back shares later this week and on hopes of strong Q2 performance.

 

OUTLOOK

 

Markets in China are closed today for a holiday. Hang Seng and Nikkei are up 0.8% and 0.5% respectively. SGX Nifty is suggesting around 50 points higher start for our market.

 

At the risk of repeating, we had initiated positive view on Nifty after 11225 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss. After 11325 was achieved, we have been working with next targets of 11460 followed by 11618.

 

Nifty yesterday achieved 11460 at the open itself and surged all the way to 11578 before closing at 11503.  The benchmark is set to open near 11550 today.

 

11618, the top made on 16th September, continues to be next upside target/resistance to eye.

 

Immediate support on the hourly chart has moved up to 11270, with the stop-loss of which, trading longs should be held on to.