10915, 10942 ARE NEXT TARGETS; TRAIL STOP-LOSS TO 10750

10915, 10942 ARE NEXT TARGETS; TRAIL STOP-LOSS TO 10750

WORLD MARKETS

US indices rose 0.1%-0.4% after President Trump said he would delay placing additional tariffs on Chinese goods.

Trump said in a series of tweets the U.S. would not add more tariffs on imports from China at the start of March. He cited "substantial progress" in bilateral talks, including intellectual property protection and technology transfer issues. However, he did not state a new deadline.

The Shanghai Composite surged 5.6% yesterday on the back of this development, posting its biggest one-day gain since July 9, 2015.

General Electric surged 6% after announcing it will sell its biopharmaceutical business to Danaher for $21.4 billion.

WTI oil tumbled $1.78, or 3.1% to $55.48 and Brent fell $2.36, or 3.5% to $64.76 after US President Trump, in a tweet, urged OPEC to lower the cost of crude, putting pressure on the Saudi-led group to soften its price-boosting output cuts.

European markets gained 0.1%-0.9% with Italy on the top.

AT HOME

Sensex and Nifty climbed 1% and 0.8% respectively, with Nifty extending the winning streak to fourth consecutive day. Sensex gained 342 points to settle at 36213 while Nifty finished at 10880, up 88 points. BSE mid-cap and small-cap indices gained 0.4% and 0.7% respectively. BSE IT and Teck indices soared 2.5% and 2.1% respectively, becoming top gainers among the sectoral indices while Realty index was the top loser, down 0.9%, followed by 0.1% lower Oil & Gas, Telecom and Energy indices.

FIIs net bought stocks and index futures worth Rs 2134 cr and 297 cr respectively but net sold stock futures worth Rs 902 cr. DIIs were net sellers to the tune of Rs 1746 cr.

Rupee appreciated 16 paise 70.97

Adani Ports tumbled after company's unit, Adani Logistics, announced that it would be acquiring Adani Agri Logistics from Adani Enterprises in an all-cash deal, at a proposed enterprise value of Rs 1,662 crore. This was considered to be expensive and raised questions on capital allocation of the company.

Britannia will replace HPCL in Nifty effective March 29.

OUTLOOK

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

Readers would recall that we had turned our view positive on Nifty after 10723 hurdle was taken out and had said that 10810-10860, the region where 20, 34 and 200 DMAs are placed, would be the next target/resistance zone, upon crossover of which 10915 followed by 10942 which are the 61.8% and 67% retracement levels of the entire 11118-10585 fall, would be next targets/hurdles to eye.

Nifty yesterday touched a high of 10887 and closed at 10880, taking out 10810-10860 resistance zone and moving towards next target of 10915.

As mentioned above, 10915 followed by 10942, which are the 61.8% and 67% retracement levels of the entire 11118-10585 fall, are the next targets/hurdles to eye.

Immediate support on the hourly chart has moved up to 10750, with the stop-loss of which, trading longs should be held on to.

U.S. Federal Reserve Chairman Jerome Powell will testify before Congress today and market participants will look for clues on the Fed's next moves during Powell's appearance.