NIFTY ACHIEVES 20-DMA TARGET; TRAIL STOP-LOSS TO 17400

 

NIFTY ACHIEVES 20-DMA TARGET; TRAIL STOP-LOSS TO 17400

 

WORLD MARKETS

 

US indices gained 0.5%-0.9%, notching a four-day winning streak, driven by a jump in tech shares, which were led by a 7.3% rally in Alphabet shares.

 

Data from ADP showed private U.S. payrolls fell unexpectedly by 301,000 in January as against expectation of a 200,000 rise. This marks the first time in more than a year that private payrolls fell.

 

The yield on the benchmark 10-year Treasury note dipped 3 basis points to 1.77%. Dollar index fell 0.3% to 95.9280. Spot gold gained 0.4% to $1,808.48 per ounce.

 

Shares of Facebook-parent Meta Platforms plunged more than 21% in after-hours trading after the company’s quarterly profit fell short of expectations.

 

Brent crude futures settled 0.35% higher at $89.47 per barrel and WTI crude advanced 6 cents to settle at $88.26 per barrel. OPEC and its allies agreed to a further planned increase in output.

 

In Europe, FTSE and CAC rose 0.6% and 0.2% respectively while DAX was marginally in the red. Eurozone consumer prices rose to all time high of 5.1% year-on-year in January after a 5% rise in December.

 

AT HOME

 

Benchmark indices climbed 1.2% each, extending the winning streak to third straight day. Sensex settled at 59558, up 695 points while Nifty added 203 points to finish at 17780. Nifty mid-cap and small-cap indices gained 1.2% and 1.4% respectively.  All the BSE sectoral indices ended higher with Bankex and Finance indices on the top, up 2.1% and 2% respectively.

 

FIIs net sold stocks worth Rs 184 cr but net bought index futures and stock futures worth Rs 1697 cr and 217 cr respectively. DIIs were net buyers to the tune of Rs 426 cr.

 

Rupee depreciated 5 paise to end at 74.84/$.

 

OUTLOOK

 

Markets in Chinese mainland and Hong Kong remain shut for the Lunar New Year holidays. SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that 20-DMA, placed around 17770, was the next upside level to eye.

 

Nifty surged to touch a high of 17794 before closing at 17780, achieving the target mentioned above and vindicating our view.

 

17850 followed by 18027, which are the 67% and 78.6% retracement levels of the 18350-16836 fall, are the next upside levels to eye; Immediate support on the hourly chart has moved up to 17400, with the stop-loss of which, trading longs can be held on to.

 

40160 is the next upside target for Banknifty; 38220 is the immediate support.