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.