12700 IS THE NEXT UPSIDE TARGET; 12367-12280 IS THE SUPPORT ZONE

 

12700 IS THE NEXT UPSIDE TARGET; 12367-12280 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

Dow and S & P 500 climbed 3% and 1.2% respectively to hit new intraday record highs but Nasdaq fell 1.5%, as promising vaccine news sent stocks benefiting from economic reopening soaring while stay-at-home plays plunged.

 

Pfizer and BioNTech announced their coronavirus vaccine was more than 90% effective in preventing Covid-19.

 

Airline stocks jumped more than 15%, while shares of Cruise operators surged more than 25% each. On the flip side, some of the popular stay-at-home plays such as Zoom Video and Netflix nosedived.

 

Brent crude surged $3.11, or 7.9%, to $42.56 a barrel, while WTI crude settled up $3.15, or 8.5%, at $40.29 for their biggest daily gain in more than six months.

 

European markets soared 4.7%-7.7%.

 

AT HOME

 

After solid last week, it was a spectacular start to the new week as benchmark indices soared 1.6% each to hit record highs. Sensex settled at 42597, up 704 points while Nifty finished at 12461, up 197 points. BSE mid-cap and small-cap indices rose 1% and 0.6% respectively. Except 0.1% lower Healthcare index, all the BSE sectoral indices ended in green with Telecom index and Bankex being the top gainers, up 3.8% and 2.8% respectively.

 

FIIs net bought stocks and index futures worth Rs 4548 cr and 905 cr respectively but net sold stock futures worth Rs 755 cr. DIIs were net sellers to the tune of Rs 3036 cr.

 

Rupee appreciated 4 paise to end at 74.16/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up a percent while Shanghai is little changed. SGX Nifty is suggesting around 200 points higher start for our market.

 

In yesterday's report we had said that 12430, the top made in January, was the next upside target above which 12500 would be the next level to eye. We had added that once 12500 is taken out, 12700, where a rising trendline adjoining tops made in August 2018 and June 2019 is placed, would be the next major target/resistance to eye.

 

Nifty surged all the way to 12474 before closing at 12461 and is set to open near 12650 today.

 

12700, where a rising trendline adjoining tops made in August 2018 and June 2019 is placed, is the next major target/resistance to eye.

 

12367-12280, the gap created by yesterday’s gap-up opening, would work as the support zone.

 

Trail stop-loss in long positions to 12280.