13760 ACHIEVED; TRAIL STOP-LOSS TO 13530

 

13760 ACHIEVED; TRAIL STOP-LOSS TO 13530

 

WORLD MARKETS

 

US indices rose 0.5%-0.8% to close at new highs amid optimism around Covid vaccines as well as the hope that lawmakers will soon come to a consensus on additional stimulus measures.

 

Senate Majority Leader Mitch McConnell said a “bipartisan, bicameral agreement appears to be close at hand.”  House Speaker Nancy Pelosi also said Democrats were moving closer to a consensus.

 

Also, Food and Drug Administration advisors overwhelmingly backed Moderna’s Covid vaccine, a key step towards public distribution approval by the FDA.

 

Meanwhile, jobless claims totaled 885,000 last week, hitting their highest level since early September, and coming in above the expected print of 808,000.

 

Brent crude rose 34 cents to $51.42 a barrel and WTI crude futures rose by 45 cents to $48.27 a barrel, hitting 9-month high.

 

The U.S. dollar index touched a low of 89.867, it's lowest level in 2-1/2 year. Spot gold jumped 1.5% to $1,892.31 per ounce.

 

In Europe, FTSE fell 0.3% while DAX rose 0.8% and CAC was little changed.

 

Bank of England kept its main lending rate at 0.1% and maintained its target stock of asset purchases at £895 billion ($1.2 trillion).

 

AT HOME

 

Sensex and Nifty rose 0.5% and 0.4% respectively, extending the winning streak to fifth straight day and hitting yet another record high. Sensex settled at 46890, up 223 points while Nifty added 58 points to finish at 13740. Nifty mid-cap index however fell 0.3%. Small-cap index was up 0.2%. BSE Finance and Capital Goods indices rose 1% and 0.7% respectively, becoming top gainers among the sectoral indices while Metal index slipped 1.4%, becoming top loser, followed by 1% lower Oil & Gas and Utilities indices.

 

FIIs net bought stocks worth Rs 2355 cr but net sold index futures and stock futures worth Rs 375 cr and 361 cr respectively. DIIs were net sellers to the tune of Rs 2494 cr.

 

Rupee depreciated 3 paise to end at 73.70/$.

 

Aarti Industries, Dr. Lal Path Labs and HDFC AMC will be introduced in F&O segment from 1st January, 2021.

 

OUTLOOK

 

Today morning, Shanghai is up 0.2%, Nikkei is little changed while Hang Seng is down 0.4%. SGX Nifty is suggesting around 15 points higher start for our market.

 

In yesterday's report we had said that 13760 is the next upside target to eye and had advised trailing stop-loss to 13500.

 

Nifty, after touching a high of 13773, eased to end at 13740, achieving our target and vindicating our view.

 

13773, the top made yesterday, is the immediate hurdle, upon crossover of which 13825 would be the next upside target.

 

Immediate support on the hourly chart has moved up to 13530, with the stop-loss of which, trading longs should be held on to.