NIFTY ACHIEVES 11523 TARGET; TRAIL STOP-LOSS TO 11325

NIFTY ACHIEVES 11523 TARGET; TRAIL STOP-LOSS TO 11325

WORLD MARKETS

US indices rose 0.2%-0.4% ahead of a two-day monetary policy meeting by the Fed, set to begin on Tuesday. Amazon and Apple outperformed, but gains were kept in check amid pressure from Boeing and Facebook.

US crude rose 1% or 57 cents to $59.09 a barrel and Brent rose 38 cents or half a percent to $67.54, supported by the prospect of prolonged OPEC-led oil supply curbs and signs of inventory declines at the delivery point for U.S. crude futures.

European markets, except 0.2% lower DAX, gained 0.1%-1% with FTSE on the top. The European Union’s trade surplus with the U.S. and its deficit with China increased in January, official data showed yesterday.

AT HOME

Sensex and Nifty gained 0.2% and 0.3% respectively, extending the winning streak to sixth consecutive day. Sensex settled at 38095, up 70 points while Nifty added 35 points to finish at 11462. BSE mid-cap and small-cap indices however fell 0.2% and 0.1% respectively. BSE Realty index climbed 2.5%, becoming top gainer among the sectoral indices, followed by 1.7% higher Energy index. Auto and Telecom indices were the top losers, down 1.4% and 1.3% respectively.

FIIs net bought stocks and index futures worth Rs 1823 cr and 828 cr respectively but net sold stock futures worth Rs 802 cr. DIIs were net sellers to the tune of Rs 1269 cr.

Rupee appreciated 56 paise to end at 68.53/$, the strongest level since August 1, 2018.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 40 points higher start for our market.

After Nifty achieved 11465 target, we had given next targets of 11523, followed by 11600 in yesterday's report.

Nifty touched a high of 11530 before closing at 11462, achieving 11523 target and vindicating our view.

11530, the top made yesterday, coincides with the upward sloping trendline adjoining tops made in October and December 2018. Hence, a crossover of 11530 is required for a fresh upmove. If that happens, 11600 would be the next target to eye.

Immediate support on the hourly chart has moved up to 11325, with the stop-loss of which, trading longs should be held on to.