TRAIL STOP-LOSS TO 13953

 

TRAIL STOP-LOSS TO 13953

 

WORLD MARKETS

 

Dow slipped 1.2% while S & P 500 and Nasdaq tumbled 1.5% on concerns over growing number of Covid-19 infections globally and outcome of runoff elections in Georgia.

 

Several cases of a new coronavirus strain have been confirmed across the US. New York state confirmed its first case of the new coronavirus strain yesterday. England imposed a third coronavirus lockdown as the region grapples with a more transmissible variant of Covid-19. Japan is also considering declaring a state of emergency for Tokyo and several neighboring areas as early as Thursday in an attempt to stem the spread of the virus.

 

US markets are also keenly awaiting Tuesday’s Georgia runoff elections, which will determine whether Republicans can hold on to control in the Senate. There are fears that if Democrats gain control of the Senate, increased tax rates and more progressive policies could become reality. However, such an outcome might lead to a bigger and faster spending package, which will help support the market.

 

Brent futures fell 50 cents, or 1%, to $51.30 a barrel, while WTI settled 1.8%, or 90 cents, lower at $47.62 per barrel

 

The dollar index slid to 89.42, a 2-1/2 year low, before rebounding to 89.86. Spot gold climbed 2.4% to $1,943.13 an ounce.

 

In Europe, FTSE and CAC rose 1.7% and 0.7% respectively while DAX was up 0.1%.

 

AT HOME

 

Bulls continued to charge ahead as Sensex and Nifty added 0.6% and 0.8% respectively to hit fresh record highs. Sensex settled at 48176, up 307 points while Nifty added 114 points to finish at 14132. Nifty mid-cap and small-cap indices climbed 1.4% and 1.2% respectively. Except marginally lower Bankex and Consumer Durable indices, all the BSE sectoral indices ended in green, with Metal index on the top, up 5.3%, followed by 2.8% higher Basic Materials index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1843 cr, 943 cr and 781 cr respectively. DIIs were net sellers to the tune of Rs 715 cr.

 

Rupee appreciated 10 paise to close at 73.02/$.

 

The IHS Markit Manufacturing PMI stood at 56.4 in December versus 56.3 in November.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-0.9% and SGX Nifty is suggesting around 90 points lower start for our market.

 

In yesterday's report we had said that 14100 cotinued to be next upside target, upon crossover of which, 14300 would be the next level to eye.

 

Nifty achieved 14100 and went further to touch a high of 14148 before closing at 14132. The benchmark is set to open near 14050 today.

 

14300 is the next upside level to eye.

 

13953, the low made yesterday, would now act as immediate support, with the stop-loss of which, trading longs should be held on to.