13200 CONTINUES TO BE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 12910

 

13200 CONTINUES TO BE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 12910

 

WORLD MARKETS

 

US indices surged 1.3%-1.6%, buoyed by discovery of another effective coronavirus vaccine and on news that the Trump administration has accepted Joe Biden’s transition into office. The Dow broke above 30,000 for the first time.

 

Donald Trump accepted the transition to a Joe Biden presidency and on optimism that COVID-19 vaccines are close to being rolled out.

 

Brent crude gained 3.9% to settle at $47.86 per barrel while WTI crude settled 4.3% higher at $44.91 per barrel, its highest level since March 6.

 

The dollar index fell 0.3% to 92.214. Spot gold dropped 1.5% to $1,808 an ounce, after touching its lowest since July 17 at $1,800.

 

European markets rose 1.2%-2%. Germany’s economy grew by a record 8.5% in the third quarter, up from an initial flash estimate of 8.2% and following a 9.8% drop in the second quarter.

 

AT HOME

 

Benchmark indices surged 1% each, hitting record intraday as well as closing highs and extending the winning streak to third straight day. Sensex settled at 44523, up 445 points while Nifty added 128 points to finish at 13055. BSE mid-cap and small-cap indices rose 0.6% and 0.9% respectively. BSE Bankex soared 2.4%, becoming top gainer among the sectoral indices, followed by 1.8% higher Auto and Realty indices.

 

FIIs net bought stocks worth Rs 4563 cr but net sold index futures and stock futures worth Rs 29 cr and 908 cr respectively. DIIs were net sellers to the tune of Rs 2522 cr.

 

Rupee appreciated 10 paise to close at 74/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.5%-1.8% and SGX Nifty is suggesting around 70 points higher 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.

 

After 12970 target was achieved, we had given next target of 13200.

 

Nifty yesterday touched a high of 13079 before closing at 13055 and is set to open above 13100 today.

 

13200 continues to be next upside target to eye. Immediate support on the hourly chart has moved up to 12910, with the stop-loss of which, trading longs should be held on to.