NIFTY ON TRACK TO ACHIEVE 10700 TARGET; TRAIL STOP-LOSS TO 10925

NIFTY ON TRACK TO ACHIEVE 10700 TARGET; TRAIL STOP-LOSS TO 10925

WORLD MARKETS

US indices gained 0.1%-0.5% on hopes of a possible U.S.-China trade deal.

The South China Morning Post reported that China's Xi will meet with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer on Friday

US crude rose 80 cents or 1.5% to $53.90 a barrel while Brent added $1.19, or 1.9% to reach $63.61.

European markets gained 0.4%-0.9%. U.K. consumer prices rose at an annual rate of 1.8% in January, following a 2.1% increase in previous month. Euro zone industrial production fell 0.9% month-on-month and 4.2% year-on-year in December.

AT HOME

After gaining about half a percent at the open, benchmark indices nosedived nearly a percent from the top of the day to end lower by a third of a percent, with Sensex and Nifty extending the losing streak to fifth and fourth consecutive day respectively. Sensex lost 119 points to settle at 36034 while Nifty finished at 10793, down 37 points. BSE mid-cap and small-cap indices fell 0.5% and 0.4% respectively. BSE Oil & Gas and Capital Goods indices were the top losers among the sectoral indices, down 2.1% and 1.8% respectively while IT and Teck indices gained the most, up 0.7% and 0.5% respectively.

FIIs net sold stocks and stock futures worth Rs 677 cr and 301 cr respectively but net bought index futures worth Rs 397 cr. DIIs were net buyers to the tune of Rs 713 cr.

Rupee depreciated 10 paise to end at 70.80/$.

OUTLOOK

Data from Japan showed gross domestic product grew at an annualized rate of 1.4% in the October to December period last year.

Today morning, Nikkei is up 0.1% while Hang Seng and Shanghai are modestly lower. SGX Nifty is suggesting about 40 points lower start for our market.

Readers would recall that we turned our view on Nifty negative after immediate support of 10930 was breached. We had given downside target zone of 10855-10833 where 200 and 34-DMAs were placed and after these targets were met, we have been working with 10700 as the next support.

Nifty, yesterday plunged to 10772 before closing at 10793 and is set to open near 10750 today.

10700, where an upward sloping trendline adjoining bottoms made in December and January is placed, continues to be next downside target to eye.

Immediate hurdle on the hourly chart has moved lower to 10925, with the stop-loss of which, trading shorts can be held on to.

ONGC, Ashok Leyland and Jet Airways will report their quarterly earnings today.