NIFTY NEARLY ACHIEVES 10583 TARGET; TRAIL STOP-LOSS TO 10723

NIFTY NEARLY ACHIEVES 10583 TARGET; TRAIL STOP-LOSS TO 10723

WORLD MARKETS

Dow ended flat while S & P 500 and Nasdaq gained 0.2% each after President Trump hinted once again that a closely watched trade deadline in March may be pushed back.

Trump said trade talks with China are going well, adding the current March deadline is not a "magical date."

Walmart rose more than 2% after reporting better-than-expected earnings.

Brent crude slipped 14 cents to $66.36 a barrel while U.S. crude settled up 50 cents at $56.09.

European markets, except 0.1% higher DAX, fell 0.2%-0.6%

AT HOME

It was yet another day of weakness as benchmark indices, after gaining about eight tenth of a percent, plunged more than a percent from the top of the day in late noon trade to end lower by a third of a percent, with Sensex and Nifty extending the losing streak to ninth and eighth consecutive day respectively. Sensex settled at 35352, down 145 points while Nifty lost 36 points to finish at 10604. BSE mid-cap and small-cap indices however gained 0.5% and 0.3% respectively. BSE IT and Teck index tumbled 2.1% and 1.7% respectively, becoming top losers among the sectoral indices while 1.7% and 1.4% higher Realty and Metal indices.

FIIs net sold stocks worth Rs 814 cr but net bought index futures and stock futures worth Rs 774 cr and 164 cr respectively. DIIs were net buyers to the tune of Rs 1164 cr.

Money market was shut yesterday on account of Chhatrapati Shivaji Jayanti.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-1% and SGX Nifty is suggesting about 50 points higher start for our market.

At the risk of repeating, we had turned our view negative on Nifty ever since 10930 support was breached on 8th February and have been advising holding on to short positions with a trailing stop-loss. After 10855-10833 and 10700 targets were achieved, we had given next downside target of 10583, which was the bottom made in January.

Nifty yesterday plunged all the way to 10585 before closing at 10604, nearly achieving 10583 target and vindicating our view.

The benchmark is slated to ope around 10650 today.

10583, the bottom made in January, continues to be important immediate support to eye. If that beaks, a 'Sell" on daily chart would get confirmed. 10533, the low made in December, would be the next downside target if that happens.

10723, the top made yesterday, is now the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.