NIFTY SET TO ACHIEVE 11345 TARGET; TRAIL STOP-LOSS TO 11115

 

NIFTY SET TO ACHIEVE 11345 TARGET; TRAIL STOP-LOSS TO 11115

 

WORLD MARKETS

 

US indices gained 0.7%-1.2% on positive coroanvirus vaccine news and hope that another stimulus package could be passed.

 

Studies suggested that Regeneron’s treatment improves symptoms in non-hospitalized covid patients and Moderna’s vaccine shows signs of working in older adults.

 

U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin both expressed hope for a breakthrough on additional COVID-19 relief, as they prepared to resume talks aimed at hammering out a bipartisan deal.

 

In a chaotic and ill-tempered first debate marked by personal insults and Trump’s repeated interruptions, Trump and Biden battled fiercely over the Republican incumbent’s record on the coronavirus pandemic, health care and the economy.

 

WTI crude rose 93 cents, or 2.37%, to $40.22 per barrel after data showed inventory for the week ending Sept. 25 declined by 2 million barrels as against the expectation of a 400,000 barrel build. Brent crude fell 8 cents to $40.95 per barrel.

 

European markets fell 0.5%-0.6%. ECB President Christine Lagarde hinted at a tweak to the bank’s inflation target, as it undergoes a policy review while trying to shore up the bloc’s economic recovery.

 

For the month, US indices fell 2.3%-5.2%, the first month of decline since March.

 

AT HOME

 

Benchmark indices ended higher by a fifth of a percent after a rangebound but choppy session. Sensex settled at 38067, up 94 points while Nifty added 25 points to finish at 11247. BSE mid-cap and small-cap indices ended little changed. BSE Consumer Durables and FMCG indices gained the most among the sectoral indices, rising 1.7% and 1.4% respectively. Telecom index tumbled 2.9%, becoming top loser, followed by 1.9% lower Metal and Oil & Gas indices.

 

FIIs net sold stocks worth Rs 712 cr but net bought index futures and stock futures worth Rs 725 cr and 236 cr respectively. DIIs were net buyers to the tune of Rs 409 cr.

 

Rupee appreciated 8 paise to end at 73.76/$.

 

India’s current account balance recorded a surplus of $19.8 billion - 3.9% of GDP - in the June quarter of FY21, up from the surplus of $0.6 billion in the preceding quarter (Q4FY20), as trade deficit contracted sharply to $10.0 billion due to steeper decline in merchandise imports relative to exports.

 

Government will borrow Rs. 4.34 lk cr in second half, sticking to its Rs. 12 lk cr. borrowing plan it had set in May.

 

India's infrastructure output contracted 8.5% in August from 8% decline in July.

 

Government released guidelines for Unlock 5.0 which allows Cinemas, theatres, multiplexes to open from October 15 with 50% seating. Entertainment parks and similar places can also open from October 15. Also, States, UTs can decide on reopening schools etc post October 15 in a graded manner.

 

The price of domestic natural gas for the second half of the financial year 2020-21 is cut by 25.1% to $1.79 per MMBTU. This is positive for consumers like fertilser, power and city gas distribution companies but negative for ONGC and Oil India.

 

PNB has reported a fraud of Rs 1203 cr in NPA account of M/s Sinted Industries Ltd.

 

OUTLOOK

 

Markets in China, Hong Kong, South Korea and Taiwan are closed today for holidays. SGX Nifty is suggesting around 100 points higher start for our market.

 

In yesterday's report we had said that 11345, the 67% retracement level of the recent 11618-10790 fall, continued to be upside target/resistance while 11075 continued to be immediate support on the hourly chart.

 

Nifty, after touching a high of 11295, ended at 11247 but is set to open near 11350 today.

 

A higher start today will achieve 11345 target. 11470, where a downward sloping trendline adjoining tops made in August and September is placed, would be the next target/resistance.

 

Immediate support on the hourly chart would have risen to 11115 after today’s higher start, with the stop-loss of which, trading longs could be held on to.

 

Auto companies will report their September sales figures today.