18342 ABOVE 18210; TRAIL STOP-LOSS TO 17880

 

18342 ABOVE 18210; TRAIL STOP-LOSS TO 17880

 

WORLD MARKETS

 

After dipping nearly three forth of a percent in the initial trade, US indices reversed to end with gains of 0.5%-1.4%, as Fed Chair Powell's comments were less hawkish than expected. S & P 500 snapped 5-session losing streak.

 

Powell’s testimony signaled that while the Fed will be normalizing policy, policymakers were still debating approaches to reducing the Fed’s balance sheet, and “it is a long road” to anything close to restrictive policy.

 

US 10-year treasury yield eased 2 bps to 1.74%. Dollar index slipped 0.4% to 95.60. Gold jumped 1.2% to $1821 an ounce.

 

Brent crude climbed 3.5% to settle at $83.72 per barrel, its highest since early November and WTI gained 3.8% to $81.22 per barrel, also its highest since mid-November.

 

European markets gained 0.6%-1.1%.

 

AT HOME

 

Benchmark indices rose nearly a third of a percent, extending the winning streak to third straight day. Sensex settled at 60616, up 221 points while Nifty added 52 points to finish at 18055. Nifty mid-cap and small-cap indices inched up 0.1% each. BSE Power and Utilities indices climbed 1.8% and 1.7% respectively, becoming top gainers among the sectoral indices, while, Metal index tumbled 2.8% to become top loser, followed by 0.9% higher Basic Materials index.

 

FIIs net bought stock worth Rs 112 cr but net sold index futures and stock futures worth Rs 347 cr and 1193 cr respectively. DIIs were net buyers to the tune of Rs 379 cr.

 

Rupee appreciated 14 paise to end at 73.90/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-1.6% and SGX Nifty is suggesting around 100 points higher start for our market.

 

Readers would recall that we had turned our view bullish ever since 17155 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

 

In yesterday's report we had reiterated the view that 18210, the top made in November, was the next upside target and that immediate support on the hourly chart had moved up to 17800, with the stop-loss of which, trading longs could be held on to.

 

Nifty touched a high of 18081 before closing at 18055. The benchmark is set to open near 18150 today.

 

18210, the top made in November, continues to be the next upside target, upon crossover of which, 18342, the top made on 27th October, would be the next upside level to eye; Immediate support on the hourly chart has moved up to 17880, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 38845 and 39250, the 61.8% and 67% retracement levels of the entire 41830-34018 fall, continue to be next upside levels to eye; 37550 continues to be immediate support.

 

Infosys, TCS and Wipro will report their quarterly results today.