NIFTY CONSOLIDATES WITH A POSITIVE BIAS; TRAIL STOP LOSS TO 8290

NIFTY CONSOLIDATES WITH A POSITIVE BIAS; TRAIL STOP LOSS TO 8290

WORLD MARKETS                             

US indices gained between 0.2%-0.4% yesterday, with the S & P 500 and Dow rising to record highs as investors tracked corporate results.

European markets gained between 0.6%-1.4%.

Dollar index, after touching a low of 87.22, rebounded to close at 87.78. Nymex crude dipped $1.2 to $77.4 a barrel and gold fell $10 to $1160 an ounce.  

AT HOME

It was yet another day of consolidation as benchmark indices ended little changed after a choppy trading session. Sensex gained 6 points to settle at 27875 while Nifty finished at 8344, up 7 points. BSE mid-cap and small-cap indices gained 0.1% and 0.2% respectively. BSE FMCG index soared 2.8%, becoming top gainer among the sectoral indices, followed by 1% rise in Consumer Durable index. Oil & Gas and Capital Goods indices were the top losers, giving away 1.3% and 1% respectively.

FIIs net bought stocks worth Rs 355 cr but net sold index futures and stock futures worth Rs 89 cr and 393 cr respectively. DIIs were net sellers to the tune of Rs 315 cr.

Rupee appreciated 11 paise to close at 61.50/$.

RBI yesterday introduced a slew of changes in regulations for non-banking financial companies (NBFCs), tightening rules in a phased manner over the next four years “to create a level-playing field that does not unduly favour or disfavour any institution." 

In an apparent U-turn, the CBI, which had earlier filed a closure report in a coal blocks case, yesterday told a special court there was enough evidence against Kumar Mangalam Birla and former Coal Secretary P.C. Parakh to take cognisance of offences.

OUTLOOK

Today morning Asian markets are trading with gains in the vicinity of half a percent and SGX Nifty is suggesting about 20 points higher opening for our market.

Nifty has been in a consolidation mode for last four trading sessions. Yesterday, the benchmark made a fresh record high of 8383 before closing at 8344.

The bias on Nifty continues to be positive and "stay long with a trailing stop loss" continues to be the advice. Immediate support on the hourly chart has now moved up to 8290, which should serve as the new stop loss for trading longs.

8520 continues to be the major near term target.