NIFTY NEARS 15336 TARGET; TRAIL STOP-LOSS TO 15150

 

NIFTY NEARS 15336 TARGET; TRAIL STOP-LOSS TO 15150

 

WORLD MARKETS

 

Dow ended little changed while S & P 500 and Nasdaq rose 0.2% and 0.6% respectively after remarks from Fed officials helped ease worries about higher inflation. Technology and consumer discretionary stocks rose the most.

 

Federal Reserve officials restated their dovish views on easy monetary policy and inflation on Tuesday. Fed Vice Chair Richard Clarida said the central bank would be able to deal with rising inflation without derailing the economic recovery. San Francisco Fed President Mary Daly said while the recovery so far is encouraging, it is “way too early” to tighten policy.

 

S&P CoreLogic Case-Shiller National Home Price Index for March jumped 13.2% y-o-y.

 

US 10-year Treasury yield ticked 1.3 basis points higher to 1.577%. The dollar index rose as much as 0.4% and crossed above 90Spot gold fell 0.3% to $1,893.20 per ounce.

 

Brent crude rose 16 cents, or 0.3%, to $68.87 a barrel while WTI crude settled up 14 cents, or 0.2% to $66.21 a barrel.

 

Main European markets ended near flat line.

 

AT HOME

 

Sensex and Nifty gained 0.7% and 0.6% respectively to close at the highest level since 10 March and 16 February respectively and with Nifty extending the winning streak to fourth straight day. Sensex settled at 51017, up 380 points while Nifty added 93 points to finish at 15301. Nifty mid-cap index inched up 0.1% while small-cap index rose 0.6%. BSE Realty and IT indices climbed 2.8% and 1.8% respectively, becoming top gainers among the sectoral indices while Metal and Power indices tumbled 2.4% and 2.3% respectively, becoming top losers.

 

FIIs net bought stocks and index futures worth Rs 242 cr and 1290 cr respectively but net sold stock futures worth Rs 706 cr. DIIs were net sellers to the tune of Rs 439 cr.

 

OUTLOOK

 

Today morning, Nikkei is down 0.7% while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting a marginally higher start for our market.

 

Readers would recall that we had turned our view on Nifty bullish after 14825 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

 

In yesterday's report we had reiterated the view that 15336, the top made in March, continued to be upside level to eye and had advised holding on to long positions with the stop-loss of 15100.

 

Nifty surged to touch a high of 15320 before closing at 15301.

 

15336, the top made in March, continues to be upside level to eye, upon crossover of which, 15431, the top made in February, would be the next target.

 

Immediate support on the hourly chart has moved up to 15150, with the stop-loss of which, trading longs can be held on to.