11794 IS THE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 11400

 

11794 IS THE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 11400

 

WORLD MARKETS

 

US indices slipped 1.3%-1.6%  after President Trump called off stimulus talks until after the November election.

 

Meanwhile, Fed Chair Powell said the economy needs more aggressive fiscal and monetary stimulus for an economic recovery that he said still has “a long way to go.”

 

Brent crude fell 2.1% to $41.77 per barrel while WTI crude futures slipped 2.31% to $39.73 per barrel.

 

Main European markets gained 0.1%-0.6%.

 

AT HOME

 

Benchmark indices soared nearly a percent and half, extending the winning streak to fourth straight day and closing at the highest level in more than seven months. Sensex settled at 39574, up 600 points while Nifty added 159 points to finish at 11662. BSE mid-cap and small-cap indices rose 0.6% each. BSE Finance index and Bankex climbed 3% and 2.1% respectively, becoming top gainers among the sectoral indices while Metal index was the top loser, down 0.6%, followed by 0.2% lower Oil & Gas and Power indices.

 

FIIs net bought stocks worth Rs 1102 cr but net sold index futures and stock futures worth Rs 514 cr and 125 cr respectively. DIIs were net sellers to the tune of Rs 935 cr.

 

Rupee depreciated 16 paise to end at 73.45/$.

 

India's IHS Markit September Services PMI improved to 49.8 from 41.8 in August. Composite PMI climbed to 54.6 from 46.

 

HDFC surged after the company said its individual loan disbursements in the second quarter of 2020-21 reached 95% of the level in the year-ago period and September saw the strongest recovery since the outbreak of COVID-19 pandemic.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are off 0.4% and 0.2% respectively while Hang Seng is marginally higher. SGX Nifty is suggesting around 40 points higher start for our market.

 

Just to reiterate, 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.

 

In yesterday's report we had said that 11618, the top made on 16th September, is the next upside target to eye.

 

Nifty soared to touch a high of 11680 before closing at 11662, achieving 11618 target. The benchmark is set to open near 11700 today.

 

11794, the top made in August, is the next upside target/resistance to eye.

 

Immediate support on the hourly chart has moved up to 11400, with the stop-loss of which, trading longs should be held on to.

 

TCS will report its quarterly earnings today. Buyback is also on the agenda.