US EQUITIES SURGE ON EASING TRADE WAR WORRIES; 10227 NEXT UPSIDE TARGET FOR NIFTY

US EQUITIES SURGE ON EASING TRADE WAR WORRIES; 10227 NEXT UPSIDE TARGET FOR NIFTY

WORLD MARKETS

US indices surged 2.7%-3.3%, with the Dow posting its biggest one-day percentage gain since August 2015, as trade tensions between the U.S. and China appeared to ease.

Media reports suggested that U.S. and Chinese officials are working to improve U.S. access to China's markets and also, China has offered to buy more semiconductors from the U.S. to help cut its trade surplus with the U.S.

Dollar index fell about half a percent to 89.02.

European markets fell 0.5%-0.8% as several European Union nations expelled Russian diplomats in a show of solidarity with the U.K. which had expelled Russian diplomats after the country determined that the Kremlin was responsible for the poisoning of an ex-spy on British soil.

AT HOME

Benchmark indices soared just under a percent and half, registering biggest single day gain since 12th March. Sensex jumped 470 points to settle at 33066 while Nifty finished at 10130, up 132 points. BSE mid-cap and small-cap indices gained 1.2% and 0.7% respectively. BSE Bankex, Metal index and Finance index gained 2.3% each, becoming top gainers among sectoral indices while IT and Oil & Gas indices were the top losers, down 0.7% and 0.3% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 741 cr, 2015 cr and 39 cr respectively. DIIs were net buyers to the tune of Rs 2018 cr.

Rupee appreciated 14 paise to end at 64.86/$.

The government yesterday unveiled a Rs 2.88 lakh crore market borrowing roadmap for the first half of FY19, which would be 22.6% lesser than Rs 3.72 lakh crore raised during the same period last financial year. This would amount to 48% of government's budgeted amount for the full fiscal year and is the lowest first-half borrowing in the last 10 years in percentage terms.

OUTLOOK

Today morning, Asian markets are trading with gains of 1%-1.7% and SGX Nifty is suggesting about 30 points higher start for our market.

In yesterday's report we had mentioned that 10130 is the immediate hurdle a crossover of which is required for a fresh upmove.

Nifty yesterday touched a high of 10143 before closing at 10130 and is set to open above 10150 today.

10227, the top made last week, is the next upside target to eye. 10315, where a trendline adjoining tops made in late February and mid-March is placed, would be the next target.

Meanwhile, 10095 is the immediate support on the hourly chart, with the stop-loss of which, existing longs should be held on to.