NIFTY RETREATS FROM THE VICINITY OF 11760 HURDLE; 11540 IS THE IMMEDIATE SUPPORT

NIFTY RETREATS FROM THE VICINITY OF 11760 HURDLE; 11540 IS THE IMMEDIATE SUPPORT

WORLD MARKETS

US indices soared 1.2%-1.3%, as strong manufacturing data out of the U.S. and China eased concerns over a possible global economic slowdown.

Data from Institute for Supply Management showed U.S. manufacturing activity expanded last month, rebounding from its lowest level since late 2016. In China, the Caixin/Markit Manufacturing Purchasing Managers’ Index jumped to 50.8 in March, its highest level in eight months, beating expectations of a 49.9 print.

US oil rose $1.45 or 2.4% to $61.59 a barrel while Brent gained $1.48, or 2.2% to reach $69.06, hitting new 2019 highs, as production cuts from OPEC helped push the group’s supply to a four-year low in March while Venezuela’s output fell further due to U.S. sanctions and power outages.

European markets gained 0.5%-1.4% with DAX on the top. The British parliament failed to find a majority of its own for any alternative to Prime Minister Theresa May’s Brexit deal.

AT HOME

After gaining nearly a percent, Sensex and Nifty slipped in last half an hour to end higher by 0.4% and 0.3% respectively. Sensex settled at 38837, up 164 points while Nifty added 31 points to finish at 11655. BSE mid-cap and small-cap indices gained 0.4% and 0.7% respectively. BSE Metal and IT indices climbed 2.1% and 1.6% respectively, becoming top gainers among the sectoral indices while Consumer Durable and Realty indices fell 0.8% each, becoming top losers.

FIIs net bought stocks, index futures and stock futures worth Rs 899 cr, 505 cr and 340 cr respectively. DIIs were net sellers to the tune of Rs 1033 cr.

Eight core industires grew at 2.1% in February, up from 1.5% in January but down from 5.4% in same month last year.

Hero Motocorp sales tumbled 20.4% to 5.81 lakh units. Eicher Motor’s Royal Enefield sales dipped 20% to 60831 units. TVS Motors sales were marginally down at 3.25 lakh units.

Maruti sold 1.58 lakh vehicles in March, down 1.6% y-o-y. Ashok Leyland sales fell 4% to 21535 units. Escorts March sales were up 1% at 11905 units. M & M tractor sales fell 31% to 19688 units while auto sales rose 1% to 62952 units. Eicher Motor's commercial vehicle sales fell 7.8% to 8676 units.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.4%-0.6% but SGX Nifty is suggesting a flattish start for our market.

Readers would recall that after Nifty took out the 11572 hurdle, we had been working with next upside target of 11760, which was the top made in August 2018.

Nifty yesterday touched a high of 11738, coming in very close to 11760 target, from where it slipped to end at 11669.

11760 continues to be important immediate hurdle, a crossover of which is required for a fresh upmove.

Immediate support on the hourly chart has moved up to 11540, with the stop-loss of which, trading longs can be held on to.