12246 IS THE NEXT UPSIDE TARGET;TRAIL STOP-LOSS TO 11930

 

12246 IS THE NEXT UPSIDE TARGET;TRAIL STOP-LOSS TO 11930

 

WORLD MARKETS

 

Dow and S & P 500 climbed 2% each while Nasdaq surged 2.6%, extending the winning streak to fourth straight day and closely monitoring vote-counting in key battleground U.S. states that will decide the election.

 

Votes are still being counted in several states including Arizona, Pennsylvania, Nevada and Georgia. Meanwhile, Republicans have filed a flurry of legal challenges in several states related to the ongoing vote counts, and the Trump campaign said it will request a recount in Wisconsin.

 

Fed kept interest rates unchanged near zero, noting in its post-meeting statement that economic activity remains “well below” levels prior to the coronavirus pandemic.

 

Brent crude fell 38 cents, or 0.9%, to $40.85 a barrel and WTI crude settled 36 cents, or 0.9%, lower at $38.79.

 

European markets rose 0.4%-2%. The Bank of England’s (BOE) Monetary Policy Committee (MPC), along with maintaining its main lending rate at 0.1%, also voted to expand its target stock of asset purchases to £895 billion.

 

AT HOME

 

Sensex and Nifty soared 1.8%, extending the winning streak to fourth straight day and closing at the highest level since 13th February and 19th February respectively. This was the biggest daily gain for both the indices after 25th September. Sensex settled at 41340, up 724 points while Nifty added 211 points to finish at 12120. BSE mid-cap and small-cap indices climbed 1.7% each. Except 0.6% lower Realty index, all the BSE sectoral indices ended higher with Metal and Power indices leading the tally, up 4.4% and 3.2% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 5368 cr, 3441 cr and 588 cr respectively. DIIs were net sellers to the tune of Rs 2208 cr.

 

Rupee appreciated 35 paise to end at 74.39/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1% and 0.3% respectively while Shanghai is off 0.2%. SGX Nifty is suggesting around 25 points higher start for our market.

 

Just to reiterate, we had turned our view on Nifty bullish after 11770 hurdle was taken out and have been advising holding on to long positions with the trailing stop-loss. In yesterday's report we had said that 12025, the top made last month, was the next upside target above which, 12246, the top made in February this year, would be the next target.

 

Nifty soared to touch a high fo 12131 before closing at 12120.

 

12246, the top made in February this year, continues to be next upside target.

 

11930, the lower end of the gap created by yesterday's gap-up opening, would work as the immediate support and with the stop-loss of which trading longs can be held on to.

 

ITC, Cipla and Ashok Leyland will report their quarterly earnings today.