NIFTY ACHIEVES 10227; TRAIL STOP-LOSS TO 10150

NIFTY ACHIEVES 10227; TRAIL STOP-LOSS TO 10150

WORLD MARKETS

US indices soared 1%-1.6% as technology stocks, which had fallen sharply on Monday, rose.

Trade war worries persisted as the U.S. Trade Representative's office published its proposed list of around 1,300 Chinese imports that could be hit with tariffs. In response, China said via an embassy statement it opposed the additional tariffs proposed and that "it is only polite to reciprocate,".

European markets, except 0.4% higher Italy, fell 0.3%-0.8%. The euro zone's IHS Markit manufacturing numbers fell to an 8-month low in March to 56.6.

AT HOME

Benchmark indices reversed morning losses in the noon trade to end higher by about a third of a percent, extending the winning streak to second consecutive day. Sensex settled 115 points higher at 33370 while Nifty added 33 points to finish at 10245. BSE mid-cap and small-cap indices surged 0.9% and 1.4% respectively. Except a 0.6% and 0.2% lower Consumer Durable and IT indices respectively, all the BSE sectoral indices ended in green with Power and Utilities indices leading the tally, up 1.6% and 1.1% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 377 cr, 694 cr and 112 cr respectively. DIIs were net buyers to the tune of Rs 479 cr.

Rupee appreciated 15 paise to end at 65.02/$.

India's Nikkei Manufacturing Purchasing Managers Index (PMI), fell from 52.1 in February to a five-month low of 51.0 in March.

Direct tax collection has grown by 18% to cross Rs 10.02 lakh crore in the fiscal ended on March 31, 2018.

OUTLOOK

Today morning, Asian markets are trading with modest gains and SGX Nifty is suggesting a flattish start for our market.

At the risk of repeating, we had advised going long after immediate hurdle of 10130 was taken out for the target of 10227. In yesterday's report we had said that above 10227, 34-DMA, placed around 10330, would be the next target to eye.

Nifty yesterday touched a high of 10255 before closing at 10245, achieving the 10227 target.

34-DMA, placed around 10320, continues to be next upside target as well as the resistance to eye.

Immediate support on the hourly chart has moved up to 10150, with the stop-loss of which, trading longs should be held on to.