NIFTY TAKES OUT 10785 HURDLE; STAY LONG WITH THE STOP-LOSS OF 10700

NIFTY TAKES OUT 10785 HURDLE; STAY LONG WITH THE STOP-LOSS OF 10700

WORLD MARKETS

Nasdaq ended marginally in the red while Dow and S & P 500 gained 0.4% and 0.2% respectively. Dow extended the winning streak to seventh straight day.

Chipmaker Nvidia reported better-than-expected earnings and revenue, while giving upbeat guidance.

Oil fell nearly 1% to settle at $70.70.

In Europe, FTSE and Italy gained 0.3% and 0.5% respectively while DAX and CAC fell 0.2% and 0.1% respectively.

For the week, US indices climbed 2.3%-2.7%. In Europe, FTSE and DAX added 2.1% and 1.4% respectively while CAC rose 0.4%. In Asia, Hang Seng soared 4% while Shanghai and Nikkei rose 2.3% and 1.3% respectively.

US oil rose 1.4% for the week while Brent was up nearly 3%.

Trump said in a tweet on Sunday that he was working with Chinese President Xi Jinping to give Chinese telecommunications equipment maker ZTE "a way to get back into business, fast."

AT HOME

After a flattish start, benchmark indices saw a sustained northward move through the session to end with gains of 0.8% each, closing at the highest level since 1st February, 2018. Sensex added 290 points to settle at 35535 while Nifty finished at 10806, up 90 points. BSE mid-cap index rose 0.4% while small-cap index fell 0.1%. BSE Metal index soared 1.6%, becoming top gainer among the sectoral indices, followed by 1.1% higher Bankex and Oil & Gas indices. Telecom index tumbled 4.2%, becoming top loser, followed by 1.2% lower Consumer Durable index.

FIIs net sold stocks worth Rs 325 cr but net bought index futures and stock futures worth Rs 864 cr and 560 cr respectively. DIIs were net buyers to the tune of Rs 1163 cr.

Rupee depreciated 2 paise to end at 67.3250/$.

India's industrial production growth slowed to a five month low of 4.4% in March from 7% in February.

OUTLOOK

Karnataka registered its highest voter turnout at 72.13% in the assembly elections held on Saturday. Exit polls have sent out mixed signals. One of the five major exit polls gave simple majority to BJP at the upper level of the range, one to Congress and rest three predicted a hung assembly. Markets would now watch out for actual result, which will be out tomorrow.

Today morning, Nikkei is little changed but Hang Seng and Shanghai are up 1% and 0.5% respectively. SGX Nifty is suggesting a flattish start for our market.

Nifty, on Friday, touched a high of 10812 before closing at 10806, taking out the 10785 hurdle decisively. 10970, as we have been mentioning, is now the next upside target to eye.

10700 is the immediate support on the hourly chart, with the stop-loss of which, existing longs should be held on to.

HUL will report its quarterly earnings today.