STAY SHORT WITH THE STOP-LOSS OF 11700

STAY SHORT WITH THE STOP-LOSS OF 11700

WORLD MARKETS

Dow and S & P 500 gained 0.6% and 0.2% respectively but Nasdaq ended marginally in the red as Tesla shares were under pressure. S & P 500 rose for the sixth consecutive day.

Wall Street Journal reported that Donald Trump expects to announce the date of a trade summit with Chinese leader Xi Jinping later in the day, lifting market sentiment. CNBC later reported, however, that sticking points like enforcement mechanisms on any agreed upon deal remain an issue.

Tesla shares plunged 8.2% after the company said it delivered fewer-than-expected Model 3 cars in the first quarter.

WTI crude fell 36 cents to $62.10 a barrel while Brent rose 9 cents to $69.40.

In Europe, FTSE and CAC ended with modest cuts while DAX rose 0.3%.  German factory orders fell 4.2% in February, marking their sharpest fall since January 2017.

AT HOME

Sensex and Nifty ended lower by 0.5% and 0.4% respectively after a choppy session, extending the losing streak to second consecutive day. Sensex settled at 38684, down 192 points while Nifty lost 46 points to finish at 11598. BSE mid-cap and small-cap indices fell 0.1% and 0.3% respectively. BSE IT index was the top loser among the sectoral indices, down 1.5%, followed by 1.2% lower Energy and Teck indices. Healthcare and Auto indices gained 0.6% each, becoming top gainers.

FIIs net sold stocks and stock futures worth Rs 226 cr and 167 cr respectively but net bought index futures worth Rs 73 cr. DIIs were net buyers to the tune of Rs 1206 cr.

Rupee depreciated 74 paise to end at 69.16/$.

RBI's Monetary Policy Committee cut the repo rate by 25 bps to 6% while maintaining the policy stance "Neutral". Forecasts for growth as well as inflation were lowered. The MPC now sees FY20 GDP growth at 7.2%, down from 7.4% earlier. H1FY20 retail inflation forecast has been lowered to 2.9-3% from 3.2-3.4% while that for H2FY20 has been cut to 3.5-3.8% from 3.9% earlier.

India's March Nikkei Services PMI fell to a six-month low of 52, down from 52.5 in February. Composite PMI fell to 52.7 from 53.8.

OUTLOOK

Chinese Vice Premier Liu He met U.S. President Donald Trump at the White House’s Oval Office late yesterday.  According to official state media Xinhua, He said a new consensus has been reached between China and the U.S. on the text of a trade agreement that they are negotiating.

Stock markets in China and Hong Kong are closed today for a holiday. Other Asian markets are trading with modest gains and SGX Nifty is suggesting about 20 points higher start for our market.

In yesterday's report we had mentioned that a breach of 11600 will generate a "sell" on the hourly chart and would pave the way for further correction.

Nifty broke 11600 support and fell all the way to 11559 before closing at 11598.

11480 and 11460, the 61.8% and 67% retracement levels of the recent 11311-11761 upmove, are the downside targets/support levels to eye.

Immediate resistance is placed around 11700, with the stop-loss of which, trading shorts should be held on to.