NIFTY NEARLY ACHIEVES 10227 TARGET; 10095 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY NEARLY ACHIEVES 10227 TARGET; 10095 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices plunged 1.9%-2.7% on fears about the tech industry getting hit with regulation and trade-related worries. S & P 500 closed below its 200-day moving average for the first time since June 2016.

Amazon, one of the best performers over the past year, declined after President Trump tweeted on Saturday that Amazon was scamming the U.S. Postal Service, adding the service loses "billions of dollars" delivering packages for the e-commerce giant. Intel plunged 6% on reports that Apple would use its own chips for Mac computers, ditching Intel.

Also weighing on the sentiment was China's announcement that it is imposing tariffs on 128 kinds of U.S. products, beginning Monday, in response to U.S. duties on steel and aluminum imports unveiled last month.

Trade worries also remained after Trump linked his proposal to build a border wall between the U.S. and Mexico to ongoing NAFTA negotiations between the two countries.

The IHS Markit U.S. manufacturing PMI rose to 55.6 in March, its highest level since 2015. The ISM manufacturing index reached 59.3 last month, the expected figure being 60.

European markets were shut on account of Easter Monday.

AT HOME

Benchmark indices soared just under a percent to start new financial year on a buoyant note. Sensex surged 286 points to settle at 33255 while Nifty finished at 10211, up 98 points. BSE mid-cap and small-cap indices climbed 1.4% and 2.4% respectively. Except 0.4% and 0.1% lower Bankex and Oil & Ga indices respectively, all the BSE sectoral indices ended in green with Industrial and Healthcare indices leading the tally, up 2.5% each.

FIIs net sold stocks worth Rs 690 cr but net bought index futures and stock futures worth Rs 60 cr and 1173 cr respectively. DIIs were net buyers to the tune of Rs 413 cr.

With a view to help banks spread losses incurred on bond yield movements in Q3 and Q4, Reserve Bank of India has allowed banks to spread the provisioning they need to make for these losses over a maximum of four quarters.

India's core sector growth stood at 5.3% in February, moderating from 6.1% in January.

Finance Secretary Hasmukh Adhia said Revenue collection under the Goods and Services Tax (GST) increased by Rs 12.17 billion in February to Rs 892.64 billion as per the month-end figures.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.5%-1% and SGX Nifty is suggesting about 60 points lower start for our market.

Just to reiterate, we had given an upside target of 10227 after immediate hurdle of 10130 was taken out.

Nifty yesterday touched a high of 10220 before closing at 10212, nearly achieving this target.

A lower start today would take the benchmark to around 10150. 10095 continues to be immediate support, a breach of which would generate a "Sell" on the hourly chart and would pave the way for further correction.

On the way up, 10227 continues to be immediate hurdle, a crossover of which is required for a further upmove. 34-DMA, placed around 10330, would be the next target if that happens.