NIFTY MOVES CLOSER TO 10420 TARGET; TRAIL STOP-LOSS TO 10275

NIFTY MOVES CLOSER TO 10420 TARGET; TRAIL STOP-LOSS TO 10275

WORLD MARKETS

After gaining more than a percent and half, US indices gave away most of the gains in the late noon trade to end higher by just 0.2%-0.5%.

The rally earlier in the session happened as recent U.S.-China trade tensions appeared to ease. The decline came following a report that FBI officers had raided the office of Michael Cohen, Trump's longtime personal lawyer.

European markets rose 0.2%-0.6%.

AT HOME

Benchmark indices gained half a percent, extending the winning streak to third straight day. Sensex settled at 33788, up 161 points while Nifty added 47 points to finish at 10379. BSE mid-cap and small-cap indices gained 0.2% and 0.4% respectively. BSE Consumer Durable and Oil & Gas indices soared 1.7% and 1.5% respectively, becoming top gainers among sectoral indices while IT and Telecom indices were the top losers, down 0.9% and 0.5% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1301 cr, 232 cr and 458 cr respectively. DIIs were net buyers to the tune of Rs 359 cr.

Rupee depreciated 5 paise to end at 65.03/$.

OUTLOOK

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

Just to reiterate, after Nifty crossed the 34-DMA hurdle placed around 10310, we had given next upside target of 10420, which is the 38.2% retracement level of the 11171-9951 fall. Nifty yesterday touched a high of 10398 before closing at 10380 and is set to open flat today.

10420 continues to be immediate upside target as well as the hurdle to eye. Above 10420, 10480 the top made in mid-March, would be the next target to eye.

Meanwhile, immediate support on the hourly chart has moved up to 10275, with the stop-loss of which, trading longs should be held on to.

Chinese President Xi Jinping's scheduled speech at the Boao Forum for Asia will be closely watched for Beijing's response to the recent escalation in U.S.-China trade tensions. Marlets will also be on the lookout for potential announcements on market reforms.