NIFTY NEARLY ACHIEVES 11820 TARGET; TRAIL STOP-LOSS TO 11700

NIFTY NEARLY ACHIEVES 11820 TARGET; TRAIL STOP-LOSS TO 11700

WORLD MARKETS

US indices ended flat to modestly lower as sharp losses in the health-care sector offset strong quarterly earnings results along with better-than-expected economic data out of China.

Pharma stocks fell after UnitedHealth CEO David Wichmann warned that proposals pushed by Democratic lawmakers, such as “Medicare for All,” would “surely jeopardize the relationship people have with their doctors, destabilize the nation’s health system and limit the ability of clinicians to practice medicine at their best. ”

Morgan Stanley shares rose 2.6% after posting earnings and revenue that topped expectations. PepsiCo also reported stronger-than-forecast earnings. IBM reported better-than-expected earnings, but its stock fell 5.5% as its revenue fell for a third straight quarter. Netflix also fell 1.6% as its guidance for second-quarter earnings disappointed.

China’s economy grew by 6.4% in the first quarter, official data showed, defying expectations for a further slowdown to 6.3%. Industrial production also surged 8.5% in March, surging past a 5.9% forecast.

WTI oil settled 29 cents or half a percent lower at $63.76 per barrel while Brent fell 10 cents to $71.62.

In Europe, FTSE ended flat while other markets gained 0.4%-0.6%.

AT HOME

Benchmark indices soared just under a percent to hit record intraday as well as closing high. Sensex added 370 points to settle at 39275 while Nifty finished at 11787, up 97 points. BSE mid-cap and small-cap indices however underperformed, gaining just 0.1% and 0.4% respectively. Except a 0.9% lower Realty index, all the BSE sectoral indices ended in green with Bankex leading the tally, up 1.6%, followed by 1.2% higher Consumer Durable index.

FIIs net bought stocks and index futures worth Rs 1039 cr and 741 cr respectively but net sold stock futures worth Rs 369 cr. DIIs were net buyers to the tune of Rs 37 cr.

Rupee depreciated 18 paise to end at 69.60/$.

OUTLOOK

Today morning, Asian markets are trading with modest cuts while SGX Nifty is trading around 10850, suggesting about 25 points higher start when compared to Tuesday's close of Nifty futures.

After Nifty took out the immediate hurdle on 11700 on Monday, in Tuesday's report we had said that 11760, followed by 11820 were the upside targets.

Nifty surged to touch a high of 11810, nearly achieving 11820 target, before closing at 11787.

11820 continues to be immediate target above which 11900 would be the next target to eye.

Immediate support on the hourly chart has moved up to 11700, with the stop-loss of which, trading longs should be held on to.

Reliance Industries will report its quarterly earnings today.

In the second phase of General elections, 97 constituencies across 13 states/Union territories will go for polling today.