11760 CONTINUES TO BE UPSIDE TARGET; TRAIL STOP-LOSS TO 11480

11760 CONTINUES TO BE UPSIDE TARGET; TRAIL STOP-LOSS TO 11480

WORLD MARKETS

US indices gained 0.7%-0.8% on Friday amid renewed optimism on the progress of trade talks between US and China.

U.S. officials said China had made proposals on a range of issues that go further than it has before — including on forced technology transfer. Treasury Secretary Steven Mnuchin also said he had a “productive working dinner” with Chinese trade officials, as both sides restart negotiations with the hope of bringing an end to their protracted trade dispute.

European markets gained 0.6%-1%. In UK, May’s draft proposal to leave the EU, which has been signed off by EU officials in Brussels, was beaten by 344 votes to 286, a margin of 58 votes. In terms of economic data, German retail sales rose more more-than-expected in February. The U.K. economy grew by an annual average of 1.4%t in 2018, the weakest expansion since 2012.

For the week, US indices gained 1.1%-1.7%. European markets gained 1%-1.5%. In Asia, Nikkei tumbled 1.9%, Shanghai and Hang Seng fell 0.4% and 0.2% respectively but Nifty and Sensex gained 1.5% and 1.3% respectively.

For the quarter, the S&P 500 surged 13.1%, its biggest quarterly gain since the third quarter of 2009. The broad index also had its best first quarter since 1998. The Dow climbed 11.2% this quarter — its best start to a year since 2013 — while the Nasdaq had its biggest quarterly gain since the first quarter of 2012, rising 16.5%.

AT HOME

Sensex and Nifty gained 0.3% and 0.5% respectively on the last trading day of the fiscal 2018-19 to close at seven month high. Sensex settled at 38672, up 127 points while Nifty added 54 points to finish at 11624. BSE mid-cap and small-cap indices gained 1% and 0.7% respectively. Except 0.1% and 0.04% lower FMCG and Utilities indices, all the BSE sectoral indices ended in green with Metal and Basic Material indices leading the tally, up 2.3% and 2.1% respectively.

FIIs net sold stocks and index futures worth Rs 86 cr and 667 cr respectively but net bought stock futures worth Rs 388 cr. DIIs were net buyers to the tune of Rs 1724 cr.

Rupee appreciated 19 paise to end at 69.15/$.

India's fiscal deficit for April-February 2018-19 stood at Rs 8.51 lakh crore, which is 134.2% of the full-year revised budgeted estimate, mainly due to tepid growth in revenue collections.

For the week, Sensex and Nifty gained 1.3% and 1.5% respectively, extending the winning streak to sixth straight week.

OUTLOOK

Data over the weekend showed China's official Purchasing Managers’ Index (PMI) rose to 50.5 in March from February’s three-year low of 49.2, marking the first expansion in four months.  the official non-manufacturing Purchasing Managers’ Index (PMI) rose to 54.8 from 54.3.

Today morning, main Asian markets are trading with gains of 1.1%-1.9% and SGX Nifty is suggesting about 45 points higher start for our market.

After 11572 hurdle was taken out, we had given target of 11760 for Nifty.

The benchmark, on Friday, closed at 11623, and is set to open above 11650 today.

11760, the top made in August 2018, continues to be the next upside target/resistance to eye.

Immediate support on the hourly chart has moved up to 11480, with the stop-loss of which, trading longs should be held on to.

Auto companies will report their March sales figures today.