NIFTY NEARLY ACHIEVES 8800 TARGET; TRAIL STOP LOSS TO 8690

NIFTY NEARLY ACHIEVES 8800 TARGET; TRAIL STOP LOSS TO 8690

WORLD MARKETS                             

US indices gained about half a percent on Friday with the Dow topping 18,000 for the first time in April.

GE surged 11% after announcing a major restructuring of GE Capital, including the sale of most of the unit's assets, and will institute a $50 billion stock buyback program with proceeds from the move.

U.S. home prices for the month of March fell 0.3%, in line with expectations.

Nymex crude rose 1.7% to $51.64 a barrel after a report that the weekly rig count had its largest drop in a month.

Key European markets gained between 0.6%-1.7%.

For the week, Dow and S & P 500 rose 1.7% each while Nasdaq was up 2.2%.European markets climbed 1%-3.8%.

AT HOME

After falling nearly half a percent in the first half, benchmark indices rebounded later to end little changed. Sensex lost 6 points to settle at 28879 while Nifty finished at 8780, up 2 points. BSE mid-cap and small-cap indices gained 0.4% and 1.1% respectively. BSE Realty and Power indices were the top gainers among the sectoral indices, rising 0.7% and 0.6% respectively while Bankex and Capital Goods indices lost 0.3% each.

FIIs net bought stocks worth Rs 363 cr but net sold index futures and stock futures worth Rs 214 cr and 359 cr respectively. DIIs were net sellers to the tune of Rs 135 cr.

India's industrial production grew at 5% in February, up from 2.6% in January and  close to 18 month high, led by improvement in manufacturing activity, a rebound in consumer non-durables and lower base.

Rupee depreciated 7 paise to end at 62.31/$.

For the week Sensex and Nifty gained 2.2% each, extending the winning streak to second week.

OUTLOOK

Today morning, Nikkei is a tad lower, Shanghai is up nearly a percent and half while other Asian markets are up upto half a percent. SGX Nifty is suggesting a flattish start for our market.

Nifty on Friday touched a high of 8787 and has nearly achieved the 61.8% retracement level of the entire 9119-8269 fall, the target we have been working for some time.

Also, you have upper band of bollinger on the daily chart placed around 8860, which is likely to act as a stiff resistance in the near term. Therefore, traders are advised to book some profit in trading longs at current levels and wait for the close above the upper band of bollinger for taking fresh longs.

Immediate support on the hourly chart has moved up to 8690, which should serve as the stop loss in remaining positions.

India's CPI for March would be released today and is expected to come in at 5.36% vs 5.37% in February.

Indian markets will remain shut tomorrow for Ambedkar Jayanti.