11384 CONTINUES TO BE NEXT TARGET; TRAIL STOP-LOSS TO 11170

11384 CONTINUES TO BE NEXT TARGET; TRAIL STOP-LOSS TO 11170

WORLD MARKETS

Dow rose 0.6% while S & P 500 and Nasdaq gained 0.7% each on the back of strong economic data.

Nondefense durable goods orders posted their largest increase in six months in January, rising 0.8%. Overall durable goods orders also rose 0.4% as against expectation of a decline of 0.5%. U.S. construction spending posted its biggest increase in nine months, rising 1.3% in January. The data overshadowed a weaker-than-expected print on the producer price index.

US oil rose 2.4% or $1.50 to $58.26 a barrel and Brent rose 98 cents or 1.5% to $67.63 after the Energy Information Administration said that U.S. crude inventories fell by 3.9 million barrels last week

European markets gained 0.1%-0.7% ahead of Brexit no-deal vote. On the data front, euro zone industrial production figures for January came in stronger than expected and the U.K. cut its growth forecast for this year.

AT HOME

Sensex and Nifty gained 0.6% and 0.4% respectively, extending the winning streak to third straight day and closing at the highest level since mid-September, marking a six-month high. Sensex settled at 37752, up 216 points while Nifty added 40 points to finish at 11341. BSE mid-cap and small-cap indices however fell 0.4% and 0.3% respectively, extending yesterday's underperformance. BSE Bankex and Finance indices climbed 1.4% and 1.2% respectively, becoming top gainers among the sectoral indices while Telecom index tumbled 2.6%, becoming top loser, followed by 1.9% lower Metal index.

FIIs net bought stocks and index futures worth Rs 2722 cr and 1822 cr respectively but net sold stock futures worth Rs 908 cr. DIIs were net sellers to the tune of Rs 1508 cr.

Rupee appreciated 17 paise to end at 69.53/$.

OUTLOOK

British lawmakers rejected the idea of leaving the European Union without a Brexit deal in place. Members of the U.K. parliament will vote again Thursday evening to seek an extension to Article 50, which oversees the withdrawal process from the EU, thus extending the departure date beyond Mar. 29.

Today morning, Asian markets are trading with gains of 0.3%-0.5% and SGX Nifty is suggesting about 15 points higher start for our market.

After Nifty achieved 11320 target, we had given next target of 11384 in yesterday's report, which is the 78.6% retracement level of the 11760-10004 fall.

The benchmark touched a high of 11352 before closing at 11341 and is set to open higher today.

11384 continues to be next upside target as well as resistance to eye. Above 11384, 11465 would be the next target.

Immediate support on the hourly chart has moved up to 11170, with the stop-loss of which, trading longs can be held on to.