TRAIL STOP-LOSS TO 10470 FOR NEXT TARGET OF 10700

TRAIL STOP-LOSS TO 10470 FOR NEXT TARGET OF 10700

WORLD MARKETS

US indices gained 0.9%-1.7% on the back of strong earnings.

Netflix soared 9% after reporting in-line quarterly earnings and higher-than-expected subscriber growth. UnitedHealth rose 4% after it reported better-than-expected earnings and raised its outlook for 2018. Johnson & Johnson and Goldman Sachs too posted better-than-expected earnings and revenue.

Housing starts rebounded in March, totaling 1.319 million versus estimate of 1.262 million.

European markets gained 0.2%-0.8% with basic resources leading after China growth data. Germany's ZEW economic sentiment index slumped for the third straight month to -8.2 — the lowest level since November 2012.

US crude rose 0.5% to $66.87 and Brent gained 0.4% to trade at $71.90 a barrel.

China said it would impose deposits on U.S. sorghum imports and Several U.S. companies will be asked to put up a deposit of up to 178.6% on sorghum imports. It however, also announced plans to relax foreign ownership rules in the car market.

Earlier, China growth data for the first quarter came in at 6.8%, slightly above estimates.

AT HOME

Sensex and Nifty gained 0.3% and 0.2% respectively, extending the winning streak to ninth straight day. Sensex added 90 points to settle at 34395 and Nifty finished at 10548, up 20 points. BSE mid-cap and small-cap indices gained 0.3% each. BSE Power and Realty indices climbed 1.2% each, becoming top gainers among sectoral indices while IT and Teck indices were the top losers, down 0.4% each.

FIIs net sold stocks and stock futures worth Rs 951 cr and 432 cr respectively but net bought index futures worth Rs 237 cr. DIIs were net buyers to the tune of Rs 724 cr.

Rupee depreciated 16 paise to end at near seven-month low of 65.65/$.

The World Bank has forecasted a growth rate of 7.3% for India this year and 7.5% for 2019 and 2020, and noted that the country's economy has recovered from the effects of demonetisation and the Goods and Services Tax.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.8%-1.4% and SGX Nifty is suggesting about 50 points higher start for our market.

Just to reiterate, after Nifty achieved 10420 target, we had given 10560 as next target, which is the 50% retracement level of the entire 11171-9951 fall. Nifty yesterday touched a high of 10560 before closing at 10548, achieving this target and vindicating our view.

A higher start today would take the benchmark close to 10600. As mentioned yesterday, 10700, the 61.8% retracement level of the aforementioned fall, is the next target as well the resistance to eye.

Immediate support on the hourly chart has moved up to 10470, with the stop-loss of which, trading longs should be held on to.