TRAIL STOP-LOSS TO 9040

TRAIL STOP-LOSS TO 9040

WORLD MARKETS                             

Dow and S & P 500 fell 0.1% and 0.2% respectively while Nasdaq ended flat yesterday.

Healthcare stocks were under pressure as U.S. President Trump released his budget blueprint that proposed cutting the National Institutes of Health's spending by $5.8 billion.

Weekly initial jobless claims fell to 241,000. Housing starts rose more than expected in February to a seasonally adjusted annual rate of 1.288 million. The Philly Fed Index also topped forecasts at 32.8 for March.

U.S. crude oil reversed earlier gains settle down 11 cents at $48.75 a barrel.

Dollar index fell about half a percent. Gold climbed $26 to $1227 an ounce.

In Europe, FTSE, CAC and DAX gained 0.6% each while Italy and Spain soared 1.7% and 1.8% respectively after the defeat of the populist anti-European Union candidate Geert Wilders in the Dutch election. The Bank of England kept rates unchanged.

Earlier, Bank of Japan kept its rates unchanged and the People's Bank of China raised its short-term interest rate by 10 basis points on both medium-term lending facility loans and its open market operation reverse repurchase agreements.

AT HOME

After a gap up opening, benchmark indices added some more gains through the session with Sensex and Nifty closing higher by 0.6% and 0.8% respectively. Sensex settled at 29586, up 188 points while Nifty added 69 points to finish at 9154. BSE mid-cap and small-cap indices climbed 1.6% and 1.1% respectively. Except a marginally lower Telecom index, all the BSE sectoral indices ended in green with Metal and Power indices leading the tally, up 2.8% and 1.8% respectively.

FIIs net bought stocks and index futures worth Rs 1360 cr and 858 cr respectively but net sold stock futures worth Rs 166 cr. DIIs were net sellers to the tune of Rs 88 cr.

Rupee appreciated 28 paise to end at 65.5350/$.

GST council yesterday cleared drafts of two main supplementary legislations — the State GST Bill and the UT GST Bill. The other three enabling legislations — Central GST, Integrated GST and the Compensation Law — have already been cleared by the Council in an earlier meeting, thus concluding the legislative exercise of approving the draft legislation after months of hectic confabulations between the Centre and the states. Four of these legislations — CGST, IGST, UTGST and the Compensation law — will now be cleared by the Union Cabinet and taken to Parliament for final approval. The fifth law — SGST Bill — will be taken by the state government through the cabinets to their respective state assemblies.

OUTLOOK

Today morning, except a 0.3% lower Nikkei, other Asian markets are trading with modest gains and SGX Nifty is suggesting about 15 points higher start for our market.

As mentioned in yesterday's report, a decisive crossover of 8970 marks a major breakout after a two-year long consolidation, major target of which comes to around 10000. "Hold on to long positions with a trailing stop-loss" continues to be the advisee.

Immediate support on the hourly chart has moved up to 9040, which should serve as the fresh stop-loss for trading longs.