TRAIL STOP-LOSS TO 12475

 

TRAIL STOP-LOSS TO 12475

 

WORLD MARKETS

 

Dow eased 0.1% while S & P 500 and Nasdaq rose 0.8% and 2% respectively as technology stocks rebounded from two-day sell-off.

 

News that New York would put restrictions on bars, restaurants and gyms as COVID-19 infections rose in the state, weighed on the Dow.

 

Brent crude rose 0.16% to $44.53 a barrel, while U.S. West Texas Intermediate (WTI) crude settled up 9 cents, or 0.2%, to $41.45 a barrel.

 

European markets gained 0.4%-1.4%.

 

AT HOME

 

Sensex and Nifty gained 0.7% and 0.9% respectively, extending the winning streak to eighth straight day and hitting yet another record high. Sensex added 316 points to settle at 43593 while Nifty finished at 12749, up 118 points. BSE mid-cap and small-cap indices rose 0.8% and 0.3% respectively. BSE Metal and Healthcare soared 3.5% and 2.9% respectively, becoming top gainers among the sectoral indices while Energy and Consumer Durables indices plunged 3.1% and 1.3% respectively, becoming top losers.

 

FIIs net bought stocks and index futures worth Rs 6207 cr and 239 cr respectively but net sold stock futures worth Rs 392 cr. DIIs were net sellers to the tune of Rs 3464 cr.

 

Rupee depreciated 19 paise to end at 74.37/$.

 

Government yesterday announced Production-Linked Incentives (PLI) worth up to ₹2 lakh crore for 10 manufacturing sectors for next five years. These include automobiles and auto components, pharmaceuticals drugs, specialty steel, capital goods, technology products, white goods (ACs and LEDs), telecom and networking products, textiles, high efficiency solar PV modules and advanced battery cells.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.1%-0.7% and SGX Nifty is suggesting a marginally lower 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.

 

In yesterday's report we had reiterated the view that 12700, in the vicinity of which, a rising trendline adjoining tops made in August 2018 and June 2019 is placed, continues to be the next major target/resistance to eye. Nifty, touched a high of 12770 and closed at 12749.

 

12770, the top made yesterday, is the immediate hurdle, upon crossover of which, 12950-13000 would be the next target zone.

 

Immediate support on the hourly chart has moved up to 12475, with the stop-loss of which, trading longs can be held on to.