TRAIL STOP-LOSS TO 11600

 

TRAIL STOP-LOSS TO 11600

 

WORLD MARKETS

 

US indices gained 0.4%-0.8% on optimism around a potential coronavirus package.

 

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin yesterday discussed a broad coronavirus stimulus plan. Meanwhile, Trump, in a media interaction, said, the administration and Democrats were “starting to have some very productive talks.”

 

Weekly jobless claims came in at 840000, the expected figure being 825000.

 

Brent crude rose 86 cents, or 2%, to $42.85 barrel while WTI crude settled $1.24, or 3.1%, higher at $41.19.

 

European markets rose 0.5%-0.9%. German exports rose for the fourth consecutive month, growing 2.4% in August after a 4.7% rise in July.

 

AT HOME

 

Benchmark indices rose eight tenth of a percent, extending the winning streak to sixth straight day and closing at 7-1/2 month high. Sensex settled at 40182, up 303 points while Nifty added 95 points to finish at 11834. BSE mid-cap index rose 0.3% while small-cap index fell 0.3%. BSE IT and Teck indices climbed 3% and 2.7% respectively, becoming top gainers among the sectoral indices while Energy and Oil & Gas indices were the top losers, down 0.8% and 0.7% respectively.

 

FIIs net bought stocks and index futures worth Rs 978 cr and 1399 cr respectively but net sold stock futures worth Rs 237 cr. DIIs were net buyers to the of Rs 20 cr.

 

Rupee appreciated 10 paise to end at 73.24/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are little changed while Shanghai, which has opened after couple of day’s holiday, is up nearly 1.5%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 12000 would be the next upside target upon sustained above 11794.

 

Nifty surged all the way to 11905 before closing at 11834 and is set to open above 11850 today.

 

12000 continues to be next upside target to eye.

 

Immediate support on the hourly chart has moved up to 11600, with the stop-loss of which, trading longs should be held on to.

 

RBI's newly constituted Monetary Policy Committee will announce it's decision at 10.00 am today. A status quo on key interest rate along with accommodative stance is widely expected.