11760 IS THE NEXT UPSIDE TARGET; 11450 IS THE IMMEDIATE SUPPORT

11760 IS THE NEXT UPSIDE TARGET; 11450 IS THE IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained around a third of a percent on reports of progress on US-China trade negotiations front.

Media reports suggested that Chinese officials made unprecedented offers regarding force technology transfers as well as other major sticking points.

The closely watched 10-year Treasury rate hit 2.344%, its lowest level since December of 2017, before rebounding to 2.397%.

In economic news, the U.S. economy grew by 2.2% in the fourth quarter, according to the government’s final read.

US crude fell 11 cents to $59.30 a barrel and Brent fell 1 cent to $67.82, but rebounded nearly 2% from the bottom of the day after U.S. President Donald Trump called for OPEC to boost crude production to lower prices.

In Europe, FTSE and DAX rose 0.6% and 0.1% respectively while CAC and Italy fell 0.1% and 0.5% respectively. U.K. lawmakers voted on a number of Brexit alternatives, none of which gained majority support, producing further doubt as to whether Britain will manage to break an impasse to get a Brexit agreement through Parliament.

AT HOME

Sensex and Nifty soared 1.1% each to close at the highest level since 31st August and 7th September 2018 respectively, marking a seven month high. Sensex settled at 38545, up 412 points while Nifty added 125 points to finish at 11570. BSE mid-cap and small-cap indices rose 1.1% and 1% respectively. Except a 0.4% and 0.2% lower Metal and Power indices respectively, all the BSE sectoral indices ended in green with Realty and Teck indices leading the tally, up 1.6% each.

FIIs net bought stocks, index futures and stock futures worth Rs 3595 cr, 1815 cr and 1370 cr respectively. DIIs were net sellers to the tune of Rs 2080 cr.

Rupee depreciated 47 paise to end at 69.34/$.

For the March derivative series, Nifty gained 7.2%.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.6% but SGX Nifty is suggesting about 20 points lower start for our market.

In yesterday's report we had said that "11572 continues to be important immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 11760, the top made in August 2018, would be the next target to eye."

Nifty yesterday surged to touch a high of 11588 before closing at 11570 and is set to open around 11550 today.

11760, the top made in August 2018, continues to be next upside target/resistance to eye.

Immediate support on the hourly chart is placed at 11450, with the stop-loss of which, trading longs should be held on to.

NIFTY RETREATS FROM THE VICINITY OF 11572 HURDLE; 11311 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY RETREATS FROM THE VICINITY OF 11572 HURDLE; 11311 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices fell 0.1%-0.6% after the closely-watched benchmark 10-year Treasury yield hit its lowest level since Dec. 15, 2017 as worries over a possible economic slowdown lingered.

The benchmark 10-year rate traded at 2.386% after Stephen Moore, who is expected to be nominated to the Federal Reserve Board of Governors, called for the central bank to cut rates by half a percentage point.

US crude fell 53 cents to $59.41 per barrel while Brent eased 14 cents to $67.83 after EIA data showed U.S. crude inventories rose last week by 2.8 million barrels, compared with analysts’ expectations for a decrease of 1.2 million barrels.

Earlier, data showed Chinese industrial profit suffered their biggest drop since 2011 in the first two months of the year, falling 14% year to date

Main European markets ended flat to marginally lower.

AT HOME

Benchmark indices ended lower by three tenth of a percent after a choppy session. Sensex settled at 38132, down 100 points while Nifty lost 38 points to finish at 11445. BSE mid-cap and small-cap indices however, gained 0.6% each. BSE Utilities and Energy and indices tumbled 1.1% and 1% respectively, becoming top losers among the sectoral indices while Bankex and Consumer Durable indices were the top gainers, up 0.7% and 0.5% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1481 cr, 1509 cr and 291 cr respectively. DIIs were net buyers to the tune of Rs 135 cr.

Rupee depreciated 1 paise to end at 68.87/$.

OUTLOOK

Today morning, Nikkei is trading with deep cut of nearly 2% while Hang Seng and Shanghai are off 0.2% and 0.4% respectively. SGX Nifty is suggesting about 30 points lower start for our market.

After Nifty crossed the immediate hurdle of 11470 on Tuesday, in yesterday's report, we had said that 11572, the top made last week, is the next hurdle to eye.

Nifty, after touching a high of 11546, slipped to end at 11445 and is set to open around 11400 today.

11311, the low made on Monday, continues to be immediate support to eye. If that breaks, 11195, the 38.2% retracement level of the entire 10585-11572 upmove, would be the next support to eye.

11572 continues to be important immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 11760, the top made in August 2018, would be the next target to eye.

11572 IS THE NEXT HURDLE; 11311 IMMEDIATE SUPPORT

11572 IS THE NEXT HURDLE; 11311 IMMEDIATE SUPPORT

WORLD MARKETS

Dow rose 0.6% while S & P 500 and Nasdaq climbed 0.7% each as treasury yields stabilised.

Benchmark 10-year treasury yield, after touching a high of 2.454%, eased to end at 2.422%.

Housing starts fell 8.7% in February, widely missing expectations. Building permits declined, but at a slower rate than forecast by economists. Consumer confidence declined in March to 124.1 from 131.4 in February.

US oil rose 1.9% to $59.94 a barrel while Brent was up 70 cents at $67.89.

European markets gained 0.3%-0.9%.  U.K. lawmakers voted to seize control of the Brexit process on Monday evening, taking it away from Prime Minister Theresa May’s government. French GDP grew 0.3% in the final three months of last year. Meaning the economy grew 1.6% over the course of 2018. French industrial morale unexpectedly fell in March.

AT HOME

Benchmark indices soared more than a percent, with Nifty breaking 3-day losing streak. Sensex settled at 38233, up 424 points while Nifty added 129 points to finish at 11483. BSE mid-cap and small-cap indices gained 1.1% and 0.7% respectively. Except 0.6% and 0.4% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Bankex and Energy indices leading the tally, up 2.2% and 2.1% respectively.

FIIs net bought stocks worth Rs 999 cr but net sold index futures and stock futures worth Rs 1883 cr and 702 cr respectively. DIIs were net sellers to the tune of Rs 197 cr.

Rupee appreciated 7 paise to end at 68.86/$.

OUTLOOK

Today morning, Nikkei is down 0.7%, Hang Seng is flat while Shanghai is up 0.5%. SGX Nifty is suggesting about 15 points higher start for our market.

In yesterday's report we had said that 11311, the low made on Monday, was the immediate support while 11470 was the immediate hurdle on the way up.

Nifty soared 129 points to finish at 11483, crossing this hurdle.

11572, the top made last week, is now the next important resistance to eye, upon crossover of which, 11760, the top made in August 2018, would be the next hurdle.

11311, the bottom made on Monday, continues to be immediate support.

NIFTY ACHIEVES 11313 TARGET; TRAIL STOP-LOSS TO 11470

NIFTY ACHIEVES 11313 TARGET; TRAIL STOP-LOSS TO 11470

WORLD MARKETS

Dow gained 0.1% while S & P 500 and Nasdaq fell 0.1% each as the positivity over the news that the special counsel found no collusion with Russia on the part of President Donald Trump, was offset by the concerns over the global economy.

The yield curve inverted again on Monday as the benchmark 10-year yield hit its lowest level since December 2017.

US oil fell 0.4% to $58.82 a barrel while Brent rose 23 cents to $67.26.

European markets fell 0.1%-0.4%.

AT HOME

Benchmark indices tumbled nine tenth of a percent, with Nifty extending the losing streak to third straight day. Sensex settled at 37808, down 355 points while Nifty lost 102 points to finish at 11354. BSE mid-cap and small-cap indices fell 1.1% and 1.2% respectively. BSE Telecom and Realty indices tumbled 2.2% and 1.8% respectively, becoming top losers among the sectoral indices while Oil & Gas and Power indices were the top gainers, up 1.4% and 0.5% respectively.

FIIs net bought stocks worth Rs 150 cr but net sold index futures and stock futures worth Rs 153 cr and 785 cr respectively. DIIs were net sellers to the tune of Rs 13 cr.

Rupee appreciated 2 paise to end at 68.93/$.

OUTLOOK

Today morning, Nikkei is up 1.7% while Hang Seng and Shanghai are up half a percent each. SGX Nifty is suggesting a flattish start for our market.

After Nifty broke the immediate support of 11450 on Friday, we had given downside target of 11412 followed by 11313 in yesterday's report.

Nifty plunged all the way to 11311 before closing at 11354, achieving 11313 target and vindicating our view.

11311, the low made yesterday, is the immediate support, below which, 11195, the 38.2% retracement level of the entire 10585-11572 upmove, would be the next support to eye.

11470 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts should be held on to.

11313 BELOW 11412; 11572 IS THE IMMEDIATE HURDLE

11313 BELOW 11412; 11572 IS THE IMMEDIATE HURDLE

WORLD MARKETS

US indices nosedived 1.8%-2.5% on Friday on worries over global growth emanating from inverted yield curve, weak economic data out of Europe and a downgraded economic outlook from the Fed.

The spread between the 3-month Treasury bill and the 10-year note went negative on Friday for the first time in more than a decade, which is taken as a signal that a recession may be coming soon.

US oil fell 1.6% to $59.04 while WTI fell 1.3% to $66.96 a barrel.

European markets fell 1.4%-2%. IHS Markit’s flash euro zone composite PMI fell to 51.3 in March from 51.9 the previous month, its lowest level since April 2013. French and German numbers also disappointed. Manufacturing activity in Germany dropped to its lowest level in more than six years in March. The yield on the country’s 10-year government bond turned negative for the first time since October 2016 as a result.

The European Union agreed to an extension to the date of the U.K.’s withdrawal from the bloc, but said the length of the delay would depend on whether Parliament approves Prime Minister Theresa May’s Brexit deal next week.

For the week Dow and S & P 500 fell 1.3% and 0.8% respectively but Nasdaq gained 0.3%. In Europe, DAX and CAC nosedived 2.8% and 2.5% respectively and FTSE was down 0.3%. In Asia, Shanghai climbed 2.7%, Hang Seng rose 0.3% while Nikkei nosedived 2.6%.

AT HOME

Sensex and Nifty fell 0.6% each, with Sensex breaking eight-day winning streak and Nifty extending the losing streak to second day. Sensex settled at 38164, down 222 points while Nifty lost 64 points to finish at 11456. BSE mid-cap and small-cap indices fell 0.6% and 0.4% respectively. BSE Energy and Telecom indices fell 2% and 1.4% respectively, becoming top losers among the sectoral indices while Power and Realty indices were the top gainers, up 0.8% and 0.7% respectively.

FIIs net bought stocks and index futures worth Rs 1375 cr and 550 cr respectively but net sold stock futures worth Rs 1885 cr. DIIs were net sellers to the tune of Rs 675 cr.

Rupee depreciated 13 paise to end at 68.95/$.

For the week, Sensex and Nifty gained 0.4% and 0.3% respectively, extending the winning streak to fifth straight week.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.5%-3% and SGX Nifty is suggesting about 50 points lower start for our market.

Readers would recall that we had tuned our view positive ever since immediate hurdle of 10723 was taken out on 20th February and have been advising holding on to long positions with a trailing stop-loss.

In Friday's report we had asked trailing the stop-loss to 11450.

Nifty, after touching a high of 11572 in the initial trade, slipped to touch a low of 11434 before closing at 11456 and is set to open near 11400 today.

11412, the low made last week, is the immediate support to eye, upon sustained trading below which, 11313, the low made on 14th March, would be the next support.

11573, the top made on Friday, is now the immediate hurdle, a crossover of which is required for a fresh upmove.

10600 CONTINUES TO BE NEXT UPSIDE TARGET

10600 CONTINUES TO BE NEXT UPSIDE TARGET

WORLD MARKETS

US indices gained 0.8%-1.4%, driven by gains in the technology sector and the latest policy statement from the U.S. Federal Reserve.

On Wednesday, the Fed said it does not expect to raise rates at all in 2019. The central bank had forecast at least two rate hikes for this year back in December. The Fed added that it expects to end its balance-sheet reduction process by the end of September. The Fed however lowered its economic growth forecast for 2019, raising concerns over a possible slowdown in the economy.

Treasury yields fell, with the benchmark 10-year rate hitting 2.53% on Thursday, its lowest level in a year.

Meanwhile, on trade front, Trump warned on Wednesday that Washington would be prepared to leave tariffs on Chinese goods for a “substantial period ” to ensure Beijing’s compliance with any trade deal.

US oil fell 25 cents to $59.98 per barrel and Brent eased 47 cents to $68.03.

In Europe, FTSE rose 0.9% but DAX and CAC fell 0.5% and 0.1% respectively. The Bank of England (BOE) held interest rates steady amid intensifying uncertainty over Britain’s departure date from the European Union.

AT HOME

Sensex gained 23 points to settle at 38386, extending the winning streak to eighth consecutive session but Nifty fell 11 point to finish at 11521, breaking seven-day winning streak. BSE mid-cap and small-cap indices fell 0.4% and 0.3% respectively. BSE Realty index soared 2.2%, becoming top gainer among the sectoral indices, followed by 0.9% higher IT index. Oil & Gas index tumbled 2.3%, becoming top loser, followed by 1.8% lower Utilities index.

FIIs net bought stocks and index futures worth Rs 1772 cr and 51 cr respectively but net sold stock futures worth Rs 1148 cr. DIIs were net sellers to the tune of Rs 1323 cr.

Rupee appreciated 14 paise to end at 68.82/$.

OUTLOOK

Today morning, Hang Seng is up 0.4% while Nikkei and Shanghai are marginally in the red. SGX Nifty is trading around 11600, suggesting about 45 points higher start when compared to Wednesday's close of Nifty futures.

At the risk of repeating, we had tuned our view positive ever since immediate hurdle of 10723 was taken out on 20th February and have been advising holding on to long positions with a trailing stop-loss.

On last count, after Nifty achieved 11465 target, we had given next targets of 11523, followed by 11600.

Nifty, on Wednesday, touched a high of 11556 before closing at 11521 and is set to open higher today.

11600 continues to be immediate upside target to eye. Above 11600, 11760, the top made in August 2018, would be the next major target/resistance to eye.

Immediate support on the hourly chart, after today's higher start, would have moved up to 11450, with the stop-loss of which, trading longs should be held on to.

116000 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 11410

116000 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 11410

WORLD MARKETS

US indices ended mixed with modest changes after digesting a series of conflicting reports on US-China trade negotiations.

Media reports suggested that U.S. officials are worried China may be pushing back against U.S. demands in the countries’ ongoing trade talks. The report also said Chinese negotiators are worried they have not received assurances that tariffs imposed on Chinese goods would be lifted once a deal is struck. On the flip side, another report said the talks were in the final stages, noting Chinese Vice Premier Liu He will travel to Washington in the next few weeks.

US crude fell 6 cents to $59.03 a barrel, after hitting an intraday peak at $59.57, the highest level since Nov. 12. Brent crude oil futures rose 7 cents at $67.61 per barrel.

European markets gained 0.3%-1.1%

AT HOME

Sensex and Nifty gained 0.7% and 0.6% respectively, extending the winning streak to seventh consecutive day and closing at the highest level since 7th September 2018, marking a six and a half month high. Sensex added 268 points to settle at 38363 while Nifty finished at 11532, up 70 points. BSE mid-cap and small-cap indices rose 0.5% and 0.4% respectively. BSE Telecom and Energy indices climbed 1.8% and 1.5% respectively, becoming top gainers among the sectoral indices while Auto and Capital Goods indices were the top losers, down 0.6% each.

FIIs net bought stocks and index futures worth Rs 2132 cr and 288 cr respectively but net sold stock futures worth Rs 601 cr. DIIs were net sellers to the tune of Rs 1254 cr.

Rupee depreciated 44 paise to end at 68.96/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.5% and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that after Nifty achieved 11465 target, we had given next targets of 11523, followed by 11600. Nifty, after achieving 11523 target on Monday, moved higher to touch a high of 11543 yesterday before closing at 11532.

11600 continues to be next upside target above which 11760, the top made in August 2018, would be the next major target as well as resistance to eye.

Immediate support on the hourly chart has moved up to 11410, with the stop-loss of which, trading longs should be held on to.

The U.S. Federal Reserve is set to announce its decision on interest rates later today following its two-day monetary policy meeting. Market expectations for a rate hike are at zero, however, investors will look for clues on the Fed’s economic outlook. The Fed is also expected to lower its interest rate forecasts — or “dot plots” — to show little or no further tightening in 2019 and adopt a cautious tone in light of slowing global economic growth.

116000 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 11410

116000 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 11410

WORLD MARKETS

US indices ended mixed with modest changes after digesting a series of conflicting reports on US-China trade negotiations.

Media reports suggested that U.S. officials are worried China may be pushing back against U.S. demands in the countries’ ongoing trade talks. The report also said Chinese negotiators are worried they have not received assurances that tariffs imposed on Chinese goods would be lifted once a deal is struck. On the flip side, another report said the talks were in the final stages, noting Chinese Vice Premier Liu He will travel to Washington in the next few weeks.

US crude fell 6 cents to $59.03 a barrel, after hitting an intraday peak at $59.57, the highest level since Nov. 12. Brent crude oil futures rose 7 cents at $67.61 per barrel.

European markets gained 0.3%-1.1%

AT HOME

Sensex and Nifty gained 0.7% and 0.6% respectively, extending the winning streak to seventh consecutive day and closing at the highest level since 7th September 2018, marking a six and a half month high. Sensex added 268 points to settle at 38363 while Nifty finished at 11532, up 70 points. BSE mid-cap and small-cap indices rose 0.5% and 0.4% respectively. BSE Telecom and Energy indices climbed 1.8% and 1.5% respectively, becoming top gainers among the sectoral indices while Auto and Capital Goods indices were the top losers, down 0.6% each.

FIIs net bought stocks and index futures worth Rs 2132 cr and 288 cr respectively but net sold stock futures worth Rs 601 cr. DIIs were net sellers to the tune of Rs 1254 cr.

Rupee depreciated 44 paise to end at 68.96/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.5% and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that after Nifty achieved 11465 target, we had given next targets of 11523, followed by 11600. Nifty, after achieving 11523 target on Monday, moved higher to touch a high of 11543 yesterday before closing at 11532.

11600 continues to be next upside target above which 11760, the top made in August 2018, would be the next major target as well as resistance to eye.

Immediate support on the hourly chart has moved up to 11410, with the stop-loss of which, trading longs should be held on to.

The U.S. Federal Reserve is set to announce its decision on interest rates later today following its two-day monetary policy meeting. Market expectations for a rate hike are at zero, however, investors will look for clues on the Fed’s economic outlook. The Fed is also expected to lower its interest rate forecasts — or “dot plots” — to show little or no further tightening in 2019 and adopt a cautious tone in light of slowing global economic growth.

116000 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 11410

116000 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 11410

WORLD MARKETS

US indices ended mixed with modest changes after digesting a series of conflicting reports on US-China trade negotiations.

Media reports suggested that U.S. officials are worried China may be pushing back against U.S. demands in the countries’ ongoing trade talks. The report also said Chinese negotiators are worried they have not received assurances that tariffs imposed on Chinese goods would be lifted once a deal is struck. On the flip side, another report said the talks were in the final stages, noting Chinese Vice Premier Liu He will travel to Washington in the next few weeks.

US crude fell 6 cents to $59.03 a barrel, after hitting an intraday peak at $59.57, the highest level since Nov. 12. Brent crude oil futures rose 7 cents at $67.61 per barrel.

European markets gained 0.3%-1.1%

AT HOME

Sensex and Nifty gained 0.7% and 0.6% respectively, extending the winning streak to seventh consecutive day and closing at the highest level since 7th September 2018, marking a six and a half month high. Sensex added 268 points to settle at 38363 while Nifty finished at 11532, up 70 points. BSE mid-cap and small-cap indices rose 0.5% and 0.4% respectively. BSE Telecom and Energy indices climbed 1.8% and 1.5% respectively, becoming top gainers among the sectoral indices while Auto and Capital Goods indices were the top losers, down 0.6% each.

FIIs net bought stocks and index futures worth Rs 2132 cr and 288 cr respectively but net sold stock futures worth Rs 601 cr. DIIs were net sellers to the tune of Rs 1254 cr.

Rupee depreciated 44 paise to end at 68.96/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.5% and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that after Nifty achieved 11465 target, we had given next targets of 11523, followed by 11600. Nifty, after achieving 11523 target on Monday, moved higher to touch a high of 11543 yesterday before closing at 11532.

11600 continues to be next upside target above which 11760, the top made in August 2018, would be the next major target as well as resistance to eye.

Immediate support on the hourly chart has moved up to 11410, with the stop-loss of which, trading longs should be held on to.

The U.S. Federal Reserve is set to announce its decision on interest rates later today following its two-day monetary policy meeting. Market expectations for a rate hike are at zero, however, investors will look for clues on the Fed’s economic outlook. The Fed is also expected to lower its interest rate forecasts — or “dot plots” — to show little or no further tightening in 2019 and adopt a cautious tone in light of slowing global economic growth.

NIFTY ACHIEVES 11523 TARGET; TRAIL STOP-LOSS TO 11325

NIFTY ACHIEVES 11523 TARGET; TRAIL STOP-LOSS TO 11325

WORLD MARKETS

US indices rose 0.2%-0.4% ahead of a two-day monetary policy meeting by the Fed, set to begin on Tuesday. Amazon and Apple outperformed, but gains were kept in check amid pressure from Boeing and Facebook.

US crude rose 1% or 57 cents to $59.09 a barrel and Brent rose 38 cents or half a percent to $67.54, supported by the prospect of prolonged OPEC-led oil supply curbs and signs of inventory declines at the delivery point for U.S. crude futures.

European markets, except 0.2% lower DAX, gained 0.1%-1% with FTSE on the top. The European Union’s trade surplus with the U.S. and its deficit with China increased in January, official data showed yesterday.

AT HOME

Sensex and Nifty gained 0.2% and 0.3% respectively, extending the winning streak to sixth consecutive day. Sensex settled at 38095, up 70 points while Nifty added 35 points to finish at 11462. BSE mid-cap and small-cap indices however fell 0.2% and 0.1% respectively. BSE Realty index climbed 2.5%, becoming top gainer among the sectoral indices, followed by 1.7% higher Energy index. Auto and Telecom indices were the top losers, down 1.4% and 1.3% respectively.

FIIs net bought stocks and index futures worth Rs 1823 cr and 828 cr respectively but net sold stock futures worth Rs 802 cr. DIIs were net sellers to the tune of Rs 1269 cr.

Rupee appreciated 56 paise to end at 68.53/$, the strongest level since August 1, 2018.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 40 points higher start for our market.

After Nifty achieved 11465 target, we had given next targets of 11523, followed by 11600 in yesterday's report.

Nifty touched a high of 11530 before closing at 11462, achieving 11523 target and vindicating our view.

11530, the top made yesterday, coincides with the upward sloping trendline adjoining tops made in October and December 2018. Hence, a crossover of 11530 is required for a fresh upmove. If that happens, 11600 would be the next target to eye.

Immediate support on the hourly chart has moved up to 11325, with the stop-loss of which, trading longs should be held on to.

11523 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 11300

11523 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 11300

WORLD MARKETS

Dow and S & P 500 gained 0.5% each while Nasdaq rose 0.8% on Friday on renewed optimism on the U.S.-China trade front.

Media reports suggested that Chinese Vice Premier Liu He spoke via telephone with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer and that the two sides have further made concrete progress on the text of the trade agreement between the two sides.

US crude fell 19 cents to $58.52 a barrel while Brent fell 23 cents to $67.

European markets gained 0.6%-1.4% after U.K. lawmakers voted to seek delay of a potentially chaotic exit from the European Union for at least three months. Inflation in the euro zone saw a 1.5% year-on-year increase in February.

For the week, US indices gained 1.6%-3.8%, European markets rose 1.7%-3.3% while Asian markets were up 1.8%-3.7%.

AT HOME

After climbing a percent and fourth, benchmark indices slipped in last half an hour to end with gains of 0.7%, extending the winning streak to fifth consecutive day and closing at fresh six-month high. Sensex settled at 38024, up 269 points while Nifty added 84 points to finish at 11426. BSE mid-cap index rose 0.6% but small-cap index fell 0.3%. BSE Power and Utilities indices gained 1.9% each, becoming top gainers among the sectoral indices, followed by 1.8% higher IT index. FMCG and Telecom indices were the top losers, down 1.8% and 1.6% respectively.

FIIs net bought stocks and index futures worth Rs 4323 cr and 2362 cr respectively but net sold stock futures worth Rs 2475 cr. DIIs were net sellers to the tune of Rs 2130 cr.

Rupee appreciated 26 paise to end at 69.09/$.

For the week, Sensex and Nifty gained 3.7% and 3.5% respectively, extending the winning streak to fourth straight week.

India’s trade deficit narrowed to a 17-month low of $9.60 bn Vs $14.73 bn in January.

OUTLOOK

Today morning, Shanghai is flat while Hang Seng and Nikkei are up 0.3% each. SGX Nifty is suggesting about 30 points higher start for our market.

Readers would recall that after 11384 target was achieved, we had given next target of 11465 in Friday's report.

Nifty surged to touch a high of 11487 before closing at 11426, achieving 11465 target and vindicating our view yet again.

11523 is the next target for Nifty on the way up above which 11600 would be the next level to eye.

Immediate support on the hourly chart has moved up to 11300, with the stop-loss of which, trading longs should be held on to.