NIFTY MOVES CLOSER TO 10560 TARGET; TRAIL STOP-LOSS TO 10440

NIFTY MOVES CLOSER TO 10560 TARGET; TRAIL STOP-LOSS TO 10440

WORLD MARKETS

US indices gained 0.7%-0.9% on strong corporate earnings and easing worries over Syria.

After strong numbers from BlackRock, J.P. Morgan Chase and Citigroup last week, yesterday Bank of America reported better-than-expected quarterly earnings.

U.S. retail sales rose 0.6% in March, boosted by a 2% jump in auto sales.

WTI oil fell $1.17 to settle at $66.22 a barrel.

European markets fell 0.4%-0.9%

AT HOME

After starting in the red, Sensex and Nifty saw a sustained northward move through the session to end higher by 0.3% and 0.5% respectively, extending the winning streak to eighth straight day. Sensex settled 113 points higher at 34305 while Nifty added 48 points to finish at 10528. BSE mid-cap and small-cap indices rose 0.3% and 0.6% respectively. BSE Realty and Healthcare indices soared 1.8% and 1.1% respectively, becoming top gainers among sectoral indices while IT and Teck indices were the top losers, down 0.8% and 0.7% respectively.

FIIs net sold stocks and index futures worth Rs 308 cr and 18 cr respectively but net bought stock futures worth Rs 38 cr. DIIs were net sellers to the tune of Rs 29 cr.

Rupee depreciated 28 paise to end at 65.49/$, marking a six month low.

Indian Meteorological Department’s (IMD’s) said the south-west monsoon is likely to be 97% of the long period average (LPA), implying normal summer rains.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.5% and SGX Nifty is suggesting about 20 points lower start for our market.

We have been working with target of 10560, which is the 50% retracement level of the entire 11171-9951 fall, after 10420, the 38.2% retracement level of this move, was taken out.

Nifty yesterday touched a high of 10540 before closing at 10528, moving very near to this target.

10560 continues to be immediate upside target above which 10700, the 61.8% retracement level of the above mentioned fall, would be the next major target as well as the resistance to eye.

Meanwhile, immediate support on the hourly chart has moved up to 10440, with the stop-loss of which, existing long should be held on to.