NIFTY ACHIEVES 11320 TARGET; TRAIL STOP-LOSS TO 11110

NIFTY ACHIEVES 11320 TARGET; TRAIL STOP-LOSS TO 11110

WORLD MARKETS

Dow, dragged down by Boeing fell 0.4% while S & P 500 and Nasdaq gained 0.3% and 0.4% respectively

Boeing shares fell more than 6% after several countries, including China, the European Union and Indonesia grounded all flights involving the 737 MAX model.

The U.S. consumer price index rose 0.2% in February, matching expectations. Core CPI, which strips out food and energy, fell short of estimates by gaining just 0.1%.

US oil rose 0.1% to $56.87 a barrel while Brent rose 12 cents to $66.70.

European markets ended mixed with modest changes.

British Prime Minister Theresa May’s Brexit withdrawal deal suffered another defeat in parliament where it was rejected yesterday evening by 149 votes. While the route forward appears uncertain, May has already promised two more votes this week for lawmakers to decide if the U.K. should leave the 28-member bloc with no deal, or should request a delay to its departure — which is currently scheduled for Mar. 29.

The British pound tumbled from levels above $1.32 to trade around $1.3068 following vote.

AT HOME

Bull March on bourses continued as Sensex and Nifty soared 1.3% and 1.2% respectively to close at the highest level since 17th September 2018. Sesnex settled at 37535, up 481 points while Nifty added 133 points to finish at 11301. BSE mid-cap and small-cap indices gained 0.6% and 1.1% respectively. Except 0.2% lower IT index, all the BSE sectoral indices ended in green with Realty and Telecom indices leading the tally, up 2.6% and 2.4% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 2478 cr, 1975 cr and 221 cr respectively. DIIs were net sellers to the tune of Rs 990 cr.

Rupee appreciated 18 paise to end at 69.70/$.

India's industrial production growth fell to 1.7% in January from 2.6% in December. Retail inflation rose to 2.57% in February from 1.97% in January. Core CPI rose to 5.38% from 5.3%.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-0.7% and SGX Nifty is suggesting about 15 points lower start for our market.

At the risk of repeating, we have been positive on Nifty 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.

After 11180 target was achieved on Monday, in yesterday's report, we had given next target of 11320, which is the 75% retracement level of the entire 11760-10004 fall.

Nifty yesterday touched a high of 11320 before closing at 11301, exactly hitting this target and vindicating our view.

Upon crossover of 11320, next upside target to eye would be 11384, which is the 78.6% retracement level of the 11760-10004 fall.

Immediate support on the hourly chart has moved up to 11110, with the stop-loss of which, trading longs can be held on to.