NIFTY RETREATS FROM 10334 HURDLE; TRAIL STOP-LOSS TO 10025

NIFTY RETREATS FROM 10334 HURDLE; TRAIL STOP-LOSS TO 10025

WORLD MARKETS

US indices climbed 1.1%-1.7%, with the S&P 500 erasing its losses and entering positive territory for the year.

After rising for seven consecutive sessions, Brent oil futures fell $1.30, or 3.1%, to $41 a barrel while WTI fell $1.4, or 3.4%, to settle at $38.19 per barrel after Saudi Arabia said an extension of output cuts by OPEC+ nations would not include additional voluntary reductions by a trio of Gulf producers.

Main European markets fell 0.2%-0.4%. German industrial production fell by 17.9% in April from the previous month. This followed a 8.9% drop seen in March and marked an annual decline of 25.3%.

AT HOME

After rising nearly 1.8% in the initial trade, benchmark indices gave away most of the gains in afternoon plunge to end just modestly higher. Sensex settled at 34370, up 83 points while Nifty added 25 points to finish at 10167. BSE mid-cap and small-cap indices rose 0.2% and 0.9% respectively. BSE Oil & Gas and IT indices climbed 2.8% and 1.7% respectively, becoming top gainers among the sectoral indices while Basic Material and Healthcare indices fell 0.9% each, becoming top losers.

FIIs net bought stocks and stock futures worth Rs 813 cr and 279 cr respectively but net sold index futures worth Rs 439 cr. DIIs were net sellers to the tune of Rs 1238 cr.

Rupee appreciated 4 paise to end at 75.54/$.

Titan reported a big beat on EBIDTA and net profit front. Net profit rose 21.1% y-o-y to Rs 357 cr.

OUTLOOK

Today morning, Hang Seng and Shanghai are up 1% and 0.2% respectively but Nikkei is off half a percent. SGX Nifty is suggesting about 50 points higher start for our market.

Just to recall, we had turned our view on Nifty bullish after 9178 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

In yesterday's report we had said that 10334, the upper end of the gap created by gap-down opening on 12th March, would be the next target to eye and had advised trailing stop-loss to 10000 in long positions.

Nifty, after touching a high of 10328 in the initial trade, slipped to end at 10167 and is set to open above 10200 today.

10334, the upper end of the gap created by gap-down opening on 12th March, continues to be immediate hurdle to eye, upon crossover of which, 10550, the 61.8% retracement level of the entire 12430-7511 fall, would be important target/resistance to eye.

Immediate support on the hourly chart has moved up to 10025, with the stop-loss of which, existing longs can be held on to.