TRAIL STOP-LOSS TO 17800

 

TRAIL STOP-LOSS TO 17800

 

WORLD MARKETS

 

After falling sharply in the initial trade, US indices staged a smart rebound to end flat to modestly lower. Nasdaq erased 2.7% loss to end marginally higher, snapping a four-day losing streak.

 

US 10-year treasury yield, after touching a high of 1.808%, ended flat at 1.762%. Dollar index inched up 0.2% to 95.95. Gold gained 0.3% to reach $1801 an ounce.

 

Brent crude declined 88 cents, or 1.1%, to $80.87 per barrel and WTI crude settled 67 cents, or 0.85%, lower at $78.23 per barrel.

 

European markets fell 0.5%-1.4%.  Euro zone unemployment fell to 7.2% in November from 7.3% in October, while the Sentix index showed euro zone investor morale has risen in January from 13.5 to 14.9, ahead of expectations.

 

AT HOME

 

Benchmark indices soared 1.1% each, closing in green for the sixth of the past seven sessions and ending at the highest level after 15th November. Sensex settled at 60395, up 650 points while Nifty added 190 points to finish at 18003. Nifty mid-cap and small-cap indices rose 0.8% and 1.3% respectively. All the BSE sectoral indices ended in green, with Capital Goods index on the top, up 2.3%, followed by 1.9% each higher Realty and Industrials indices.

 

FIIs net sold stocks and index futures worth Rs 124 cr and 539 cr respectively but net bought stock futures worth Rs 560 cr. DIIs were net buyers to the tune of Rs 482 cr.

 

Rupee appreciated 26 paise to end at 74.04/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 0.9% and 0.4% respectively while Shanghai is little changed. SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that upon crossover of 17944, 18210, the top made in November, would be the next upside target to eye and had advised holding on to long positions with the stop-loss of 17560.

 

Nifty surged to touch a high of 18017 before closing at 18003.

 

18210, the top made in November, continues to be the next upside target; Immediate support on the hourly chart has moved up to 17800, 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; Immediate support has moved up to 37550.