NIFTY RESUMES NORTHWARD JOURNEY AFTER
CONSOLIDATION; TRAIL STOP LOSS TO 8740
WORLD MARKETS
US indices ended mixed with modest
changes despite surprisingly dovish Fed minutes and apparent progress in the
Greece-euro zone negotiations as energy stocks fell.
Exxon Mobil was the greatest laggard
on the Dow, falling more than 2% on news that Warren Buffett's Berkshire
Hathaway shed its $3.47 billion stake in the energy company.
Nymex crude tumbled $1.39 to $52.14 a
barrel and weighed on the energy stocks.
US industrial production increased
0.2% in January, slightly below expectations. Housing starts too came in lower
than estimated at 1.065 million.
Minutes of the January Fed meeting
showed that the central bank will likely delay hiking interest rates to at
least the second half of this year
The European Central Bank approved a
68 billion euro two-week extension on emergency liquidity for Greek banks. The
assistance comes as Greece tries to negotiate a financing deal with European
partners or stick by the terms of its existing international bailout. Greece
will submit a request to the euro zone on Thursday to extend its loan program
for up to six months.
European markets, except a flat FTSE,
gained between 0.6%-1.8%.
AT HOME
After Monday's cool-off, benchmark indices resumed their upmove
by gaining nearly two third of a percent yesterday to close at the highest
level since 29th January. Sensex gained 184 points to settle at 29320 while
Nifty finished at 8869, up 60 points. BSE mid-cap and small-cap indices gained
0.8% and 1% respectively. BSE Consumer Durable and Power indices gained the
most among the sectoral indices, rising 1.8% and 1.4% respectively while Metal
and Realty indices lost 0.7% and 0.4% respectively.
FIIs net bought stocks and index futures worth Rs 2188 cr
and 284 cr respectively while net sold stock futures worth Rs 290 cr. The
figure in the cash segment included Rs 1860 cr on account of Hero MotoCorp
deal. DIIs were net buyers to the tune of Rs 328 cr.
Rupee depreciated 19 paise to end at 62.34/$.
OUTLOOK
Today, markets in China, Hong Kong, South Korea, Taiwan,
Singapore, Malaysia and Indonesia are shut for the holiday. Nikkei is up about
half a percent and hit a fifteen-year high following better-than-expected
export data. SGX Nifty is suggesting a flattish start for our market.
Nifty has resumed its upward move after taking support at
34-DMA which was then placed around 8500. We had given first upside target of
8800, which was the 61.8% retracement level of the recent 8997-8470 fall, above
which we have been working with the possibility of retest of the 8997 top and
have been advising holding on to trading longs with a trailing stop loss.
That continues to be the view. Immediate support on the
hourly chart has moved up to 8740, which should serve as the stop loss for
trading longs.
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