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.