12950-13000 CONTINUES TO BE TARGET ZONE; 12607 CONTINUES TO BE IMMEDIATE SUPPORT

 

12950-13000 CONTINUES TO BE TARGET ZONE; 12607 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.2%-0.6% as a sharp decline in drug store shares, worsening covid situation and disappointing retail sales data weighed on the sentiment.

 

U.S. seven-day average of daily new Covid-19 infections surpassed 150,000 for the first time on Monday. Yesterday, Fed Chair Jerome Powell warned that the surge in cases is a concern for an economic recovery that has “a long way to go.”

 

October retail sales came in lower-than-expected on the back of spiraling new COVID-19 infections and declining household income as millions of unemployed Americans lose government financial support.

 

Brent crude futures inched up 8 cents to $43.90 per barrel, while WTI crude settled 9 cents, or 0.2%, higher at $41.43 per barrel.

 

In Europe, FTSE fell 0.9%, DAX was little changed while CAC rose 0.2%.

 

AT HOME

 

It was a good start to the new Samvat as benchmark indices rose seven tenth of a percent to hit fresh record highs. Sensex settled at 43952, up 314 points while Nifty added 94 points to finish at 12874. BSE mid-cap and small-cap indices climbed 1.1% and 0.9% respectively. BSE Industrials and Metal indices surged 2.3% and 2.1% respectively, becoming top gainers among the sectoral indices while Oil & Gas and Healthcare indices were the top losers, down 1.1% and 0.7% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 4905 cr, 1015 cr and 204 cr respectively. DIIs were net sellers to the tune of Rs 3829 cr.

 

Rupee was trading at 74.46/$, appreciating 14 paise compared to previous close.

 

BPCL fell on news that Reliance Industries as well as oil majors Saudi Aramco, BP and Total did not make a bid for buying out government's stake in the company.

 

OUTLOOK

 

Today morning, Nikkei is down 0.8%, Hang Seng is flat while Shanghai is up 0.2%. SGX Nifty is suggesting a flattish start for our market.

 

At the risk of repeating, 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.

 

On last count, we had given the target zone of 12950-13000 after 12770 level was achieved.

 

Nifty yesterday touched a high of 12934 before closing at 12874 and is set to open near 12900 today.

 

12950-13000 continues to be the next target zone.

 

12607, the low made Friday, continues to be immediate support, with the stop-loss of which, long positions can be held on to.