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.