11118 IS THE NEXT UPSIDE TARGET; STAY LONG WITH THE STOP-LOSS OF 10850

11118 IS THE NEXT UPSIDE TARGET; STAY LONG WITH THE STOP-LOSS OF 10850

WORLD MARKETS

US indices ended marginally lower.

U.S. Secretary of State Mike Pompeo said Monday he thought Washington and Beijing were "on the cusp" of reaching a deal that would end the trade skirmish.

Shares of retailer Target suged 5% on stronger-than-expected quarterly results

US crude fell 3 cents to $56.56 while Brent rose 19 cents to $65.86 a barrel.

In Europe, FTSE climbed 0.7% while DAX and CAC rose 0.2% each.

Earlier, on the first day of China's annual National People's Congress (NPC), Chinese Premier Li Keqiang lowered the country's GDP (gross domestic product) forecast for 2019 to between 6 and 6.5 percent. Also, a private survey showed that the country's services sector in February saw its slowest rate of growth in four months.

AT HOME

After falling about four tenth of a percent in the initial trade, benchmark indices soared nearly a percent and half from the bottom of the day to end higher by more than a percent. Sensex settled at 36442, up 378 points while Nifty added 124 points to finish at 10987. BSE mid-cap and small-cap indices climbed 2% and 3.1% respectively. Except 0.9% and 0.7% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Auto and Oil & Gas indices leading the tally, up 3.1% and 2.8% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 752 cr, 144 cr and 559 cr respectively. DIIs were net buyers to the tune of Rs 581 cr.

Rupee appreciated 42 paise to end at 70.48/$.

OUTLOOK

Today morning, Hang Seng and Shanghai are trading with modest gains while Nikkei is down 0.7%. SGX Nifty is suggesting about 25 points higher start for our market.

For past couple of sessions, we had been mentioning that 10942, the 67% retracement level of the 11118-10585 fall, is the immediate hurdle, a crossover of which is required for a fresh upmove.

Nifty yesterday crossed this hurdle and surged all the way to 10994 before closing at 10987 and is set to open above 11000 today.

11118, the top made on 7th February, is the next upside target/resistance to eye.

Immediate support on the hourly chart is placed at 10850, with the stop-loss of which, trading longs should be held on to.