NIFTY NEARLY HITS 7510-7540 TARGET AREA; 7380 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY NEARLY HITS 7510-7540 TARGET AREA; 7380 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

Dow and S & P 500 gained 0.4% and 0.1% respectively while Nasdaq lost 0.2% yesterday, as gains in energy stocks offset declines in technology. For the Dow and S & P 500, it was the fifth straight day of gains.

Nymex oil climbed $2 to settle at $37.90 a barrel. Brent rose $2.12 to $40.84.

In a big move iron ore prices jumped 19% from $52.40 to $62.60 a tonne.

European markets ended mixed.

China's foreign currency reserves fell to $3.2 trillion at the end of February, dropping from $3.23 trillion the previous month, marking the fourth straight month of declines, although the pace of outflows slowed substantially.

AT HOME

It was a day of consolidation after three days of marathon rally, as benchmark indices ended marginally higher after a rangebound but choppy session. Sensex settled at 24646, up 39 points while Nifty added 10 points to finish at 7485. BSE mid-cap and small-cap indices gained 1.1% and 0.8% respectively. BSE Metal index and Bankex climbed 2.2% and 1.3% respectively, becoming top gainers among the sectoral indices while Telecom and IT indices lost 0.7% and 0.5% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 672 cr, 147 cr and 300 cr respectively. DIIs were net sellers to the tune of Rs 533 cr.

Rupee appreciated 26 paise to end at 67.08/$. For the week, rupee gained 2.3%, its biggest weekly gain since September 2013.

For the week, Sensex and Nifty soared 6.5% and 6.4% respectively, marking the largest weekly gain since the week ended 2nd December 2011.

OUTLOOK

Today morning, Asian markets are trading with cuts of 1%-2.5% with Shanghai leading the losses. SGX Nifty is trading around 7495, which is about 20 points higher than Friday's close of Nifty future.

Nifty on Friday touched a high of 7506 before closing at 7485, nearly achieving the 7510-7540 target area we have been working with ever since 7250 hurdle was taken out.

As advised, traders would do well to book some profit in this region.

7380 continues to be immediate support, with the stop loss of which remaining positions can be held on to.