11700 IS THE IMMEDIATE HURDLE; 11559 NEAREST SUPPORT

11700 IS THE IMMEDIATE HURDLE; 11559 NEAREST SUPPORT

WORLD MARKETS

US indices gained 0.2%-0.6%, boosted by better-than-expected jobs data and progress on the U.S.-China trade front.

U.S. economy added 196,000 jobs in March as against the expected print of 175000. The U.S. unemployment rate remained at 3.8%. However, wage growth expanded 3.2%, below an expected gain of 3.4%.

President Donald Trump said Thursday that swift progress had been made, adding “we’ll know over the next four weeks” whether a deal can be reached.

US crude rose 98 cents or 1.6% to $63.11 a barrel while Brent gained 94 cents or 1.4% to $70.34.

European markets rose 0.2%-0.6%. German factory orders fell at their sharpest rate in two years. Meanwhile, a Bloomberg report said the Italian government is set to cut its 2019 GDP forecast to just 0.1% — significantly lower than a 1% expansion forecast in December.

For the week, US indices gained 1.9%-2.7%. In Europe, DAX soared 4.2% while FTSE and CAC climbed 2.3% each. In Asia, Hang Seng and Nikkei were up 3.1% and 2.8% respectively, while Shanghai and Sensex rose 0.5% each.

On Saturday, Chinese official broadcaster CCTV reported that there was “new progress” in trade talks that wrapped in Washington on Friday.

AT HOME

After a rangbound trade, Sensex and Nifty spiked up in last half an hour to end higher by 0.5% and 0.6% respectively, breaking two-day losing streak. Sensex settled at 38862, up 177 points while Nifty added 68 points to finish at 11666. BSE mid-cap and small-cap indices gained 0.6% and 0.7% respectively. BSE Metal and Basic Material indices climbed 2% and 1.6% respectively, becoming top gainers among the sectoral indices while Power and Utilities indices were the top losers, down 0.4% and 0.2% respectively.

FIIs net bought stocks and index futures worth Rs 798 cr and 632 cr respectively but net sold stock futures worth Rs 511 cr. DIIs were net sellers to the tune of Rs 326 cr.

Rupee depreciated 6 paise to end at 69.22/$.

For the week, Sesnex and Nifty gained 0.5% and 0.4% respectively, extending the winning streak to seventh consecutive week.

OUTLOOK

Today morning, Nikkei is flat while Hang Seng and Shanghai are up 0.6% and 0.8% respectively. SGX Nifty is suggesting a marginally higher start for our market.

After Nifty broke the immediate support of 11600, we had given downside target of 11480 and had suggested holding on to trading shorts with the stop-loss of 11700.

Nifty, after touching a low of 11559 on Thursday, rebounded to close at 11665 on Friday.

11700, the 67% retracement level of the recent 11761-11559 fall, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 11761, the top made last week, would be the next target to eye.

11559, the low made last week, is the immediate support to eye below which, 11480 would be the next support.