NIFTY NEARLY ACHIEVES 10130 TARGET; TRAIL STOP-LOSS TO 10370

NIFTY NEARLY ACHIEVES 10130 TARGET; TRAIL STOP-LOSS TO 10370

WORLD MARKETS

Recovering nearly a percent from the bottom of the day, Dow ended 0.3% lower, S & P 500 a tad lower while Nasdaq settled 0.3% up.

The initial dip was on the back of Gary Cohn's resignation and recovery happened after the White House hinted that Mexico and Canada could be exempt from planned metals tariffs.

ADP and Moody's Analytics said private-sector jobs grew by 235,000 in February, surpassing an estimate of 195,000.

Oil fell on trade war concerns with WTI down 2.3% to $61.15 and Brent down 2.2% at $64.34 a barrel.

European markets gained 0.2%-1.2% with Italy on the top.

AT HOME

Benchmark indices tumbled about nine tenth of a percent, extending the losing streak to sixth straight day and closing at three-month low. Sensex settled at 33033, down 284 points while Nifty lost 95 points to finish at 10154. BSE mid-cap and small-cap indices nosedived 1.3% and 2.2% respectively. Except 0.4% and 0.1% higher Consumer Durable and FMCG indices respectively, all the BSE sectoral indices ended in red with Telecom index leading the losses, down 2.3%, followed by 1.9% lower Capital Goods and Power indices.

FIIs net sold stocks worth Rs 720 cr but net bought index futures and stock futures worth Rs 377 cr and 354 cr respectively. DIIs were net buyers to the tune of Rs 409 cr.

Rupee appreciated 12 paise to end at 64.89/$.

Andhra Pradesh chief minister and TDP national president N Chandrababu Naidu said that two union ministers from the Telugu Desam Party (TDP) will resign from their posts against the Centre’s decision to not award special status to Andhra Pradesh. However no decision had been taken yet on whether the party would quit the NDA.

The government cleared a relief package for the debt-ridden telecom sector, giving more time to operators to pay for the spectrum bought in auctions and also relaxing the spectrum holding limit for the telecom operators.

Tata Steel has been identified as the highest evaluated compliant bidder to acquire a controlling stake in debt-ridden Bhushan Steel that is undergoing corporate insolvency resolution process under the new insolvency law.

OUTLOOK

Today morning Shanghai is flat while Nikkei and Hang Seng are up 0.9% each. SGX Nifty is suggesting about 30 points higher start for our market.

After Nifty broke the 10276 support on Tuesday, in yesterday's report we had said that "200-DMA, placed around 10130, is the next important support to eye below which 10033, the bottom made in December 2017, would be the next crucial support".

Nifty yesterday plunged all the way to 10141, nearly achieving the 10130 target, before closing at 10154 and is set to open around 10180 today.

10130, where 200 DMA is placed, continues to be important immediate support upon breach of which 10033, the bottom made in December 2017, which roughly coincides with the lower band of weekly bollinger placed around 10000, would be the next crucial support to eye.

Meanwhile, immediate hurdle on the hourly chart has moved lower to 10370, with the stop-loss of which, trading shorts should be held on to.