12950-13000 IS THE NEXT TARGET ZONE; TRAIL STOP-LOSS TO 12607

 

12950-13000 IS THE NEXT TARGET ZONE; TRAIL STOP-LOSS TO 12607

 

WORLD MARKETS

 

US indices gained 0.8%-1.6%, with the Dow and S&P 500 posting all-time closing high, after Moderna released trial data showing its coronavirus vaccine was more than 94% effective.

 

Meanwhile, US added 1 million new cases of the coronavirus in under a week. The country has now recorded more than 11 million Covid-19 cases.

 

Brent crude futures rose $1.02, or 2.4%, to $43.80 a barrel, while WTI crude settled $1.21, or 3.02%, higher at $41.34 per barrel.

 

European markets rose 0.5%-2.6%.

 

15 economies in Asia, on Sunday, signed a deal called RCEP (The Regional Comprehensive Economic Partnership) that formed the world’s largest trade alliance and aims to gradually reduce tariffs across many areas. It marks the first time that East Asian powers China, Japan and South Korea are in a single trade agreement.

 

AT HOME

 

On Saturday, the Muhurat Trading day, Sensex and Nifty gained nearly half a percent to hit fresh record intraday as well as closing highs. Sensex rose 195 points to settle at 43637 while Nifty finished at 12780, up 60 points.

 

On Friday, benchmark indices ended higher by a fifth of a percent. Sesnex settled at 43443, up 85 points while Nifty added 29 points to finish at 12720. BSE mid-cap and small-cap indices gained 0.9% and 1.1% respectively. BSE Metal and Realty indices gained 1.9% and 1.4% respectively, becoming top gainers among the sectoral indices while Capital Goods and Telecom indices were the top losers, down 0.3% each.

 

FIIs net bought stocks worth Rs 1936 cr but net sold index futures and stock futures worth Rs 473 cr and 1310 cr respectively. DIIs were net sellers to the tune of Rs 2462 cr.

 

Rupee appreciated 8 paise to end at 74.57/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are marginally higher while Shanghai is marginally lower. SGX Nifty is suggesting around 70 points higher start when compared to Saturday's close of Nifty futures.

 

In Friday's report we had said that 12770, the top made Wednesday, continued to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 12950-13000 would be the next target zone.

 

Nifty, on Saturday, touched a high of 12828 before closing at 12780 and is set to open near 12850 today.

 

12950-13000 continues to be the next target zone.

 

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