OIL SOARS TO 28-MONTH HIGH; TRAIL STOP-LOSS TO 10380

OIL SOARS TO 28-MONTH HIGH; TRAIL STOP-LOSS TO 10380

WORLD MARKETS                             

Nasdaq and S & P 500 gained 0.3% and 0.1% respectively while Dow ended marginally in the green

Brent crude jumped 3.5% to $64.27 a barrel and U.S. crude added 3% to settle at $57.35, reaching their highest marks since 2015 following a supposed anti-corruption crackdown in Saudi Arabia that resulted in the arrests of billionaire investor Prince Alwaleed bin Talal and other prominent royals, but it is seen by many analysts as a move by Saudi Crown Prince Mohammed bin Salman to consolidate his power.

Broadcom made an unsolicited bid to buy Qualcomm for $103 billion. If that goes through, it would be the largest tech deal in history.

European markets ended mixed with modest changes. Basic resources sector gained the most following surge in oil and positive outlook on other commodities like nickel and copper.

AT HOME

After rising about four tenth of a percent, benchmark indices gave away most of the gains in late noon plunge to end flat to marginally higher. Sensex settled at 33731, up 46 points while Nifty lost 1 point to finish at 10452.  BSE mid-cap and small-cap indices gained 0.5% and 0.3% respectively. BSE Consumer Durable index soared 8.6%, becoming top gainer among the sectoral indices, followed by 1.2% higher Auto index. Telecom and Power indices were the top losers, down 1.1% and 0.6% respectively.

FIIs net bought stocks worth Rs 576 cr but net sold index futures and stock futures worth Rs 929 cr and 733 cr respectively. DIIs were net sellers to the tune of Rs 264 cr.

Rupee depreciated 13 paise to end at 64.68/$.

The investigation units of the Income Tax Department have been alerted to take note of and act upon the revelations from the latest data leak — Paradise Papers. The 13 million-plus files that were leaked show that as many as 714 Indian companies and individuals are linked to offshore entities set up in tax havens.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.3%-0.9% and SGX Nifty is suggesting about 15 points higher start for our market.

We have been advising holding on to long positions with a trailing stop-loss ever since 34-DMA hurdle, placed at 9930, was taken out on 6th October.

On last count we had asked raising stop-loss to 10350 for the next target of 10550. Nifty yesterday touched a high of 10490 but then slipped to end at 10436 and is set to open higher today.

Immediate support has now moved up to 10380, which should serve as the stop-loss for long positions. 10550 continues to be next upside target.

BHEL and Cipla will report their quarterly earnings today.