NIFTY NEARLY ACHIEVES 13700; TRAIL STOP-LOSS TO 13500

 

NIFTY NEARLY ACHIEVES 13700; TRAIL STOP-LOSS TO 13500

 

WORLD MARKETS

 

Dow fell 0.2% while S & P 500 and Nasdaq rose 0.2% and 0.5% respectively, awaiting a potential fiscal economic stimulus package and after the Federal Reserve reiterated its dovish stance as expected.

 

Fed pledged to keep buying bonds until the economic recovery was completed and also said it would increase its bond purchases if the recovery slows down.

 

Congressional leaders closed in on a $900 stimulus package that would include direct payments to individuals.

 

Retail sales fell 1.1% in November, the expected drop being 0.3%.

 

Brent crude rose 28 cents to $51.04 a barrel; WTI crude futures settled 20 cents, or 0.4%, higher at $47.82 per barrel.

 

European markets rose 0.3%-1.5% as the EU signaled progress in talks over a post-Brexit trade agreement with the U.K. The flash composite euro zone PMI came in at 49.8 in December, up from 45.3 in November and beating expectations.

 

Meanwhile, Germany started its Christmas lockdown in which schools and nonessential shops must close.

 

AT HOME

 

After four days of consolidation, benchmark indices made a decisive moved upwards by climbing nine tenth of a percent and hitting fresh record highs. Sensex settled at 46666, up 403 points while Nifty added 115 points to finish at 13683. Nifty mid-cap and small-cap indices rose 1.2% and 1% respectively. All the BSE sectoral indices ended higher with Realty index leading the tally, up 5%, followed by 2.4% higher Consumer Durables index.

 

 

FIIs net bought stocks and index futures worth Rs 1982 cr and 553 cr respectively but net sold stock futures worth Rs 58 cr. DIIs were net sellers to the tune of Rs 1718 cr.

 

Rupee appreciated 7 paise to end at 73.57/$.

 

OUTLOOK

 

Today morning, Asian markets are little changed while SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 13700 continued to be next upside target, upon crossover of which 13760 would be the next level to eye and had advised holding on to long positions with the stop-loss of 13400.

 

Nifty surged to touch a high of 13692 before closing at 13682, nearly achieving 13700 target.

 

13760 is the next upside target to eye.

 

Immediate support on the hourly chart has moved up to 13500, with the stop-loss of which, trading longs should be held on to.