NIFTY ACHIEVES 200-DMA TARGET OF 8360; TRAIL STOP LOSS TO 8220

NIFTY ACHIEVES 200-DMA TARGET OF 8360; TRAIL STOP LOSS TO 8220

WORLD MARKETS                             

Dow and S & P 500 gained 0.6% each while Nasdaq rose 0.7% as investors cheered signs of progress in the Greece debt negotiations.

The head of the Eurogroup of euro zone finance ministers, Jeroen Dijsselbloem said the new Greek proposals were "broad and comprehensive," and formed a basis to restart the talks. He went on to add that he was hoping for a deal later this week.

Stocks came off session highs in midday trade as market weighed gains in the dollar and yields, as well as comments from German chancellor Angela Merkel that there was no basis on which Greece's creditors could make a decision and that Monday's summit of euro zone leaders was only advisory in nature.

US existing home sales jumped 5.1% in May to a 5-1/2-year high.

U.S. 10-year Treasury yield jumped to 2.37%, boosted by optimism on Greece and strong U.S. data. The German 10-year bund yield surged to trade near 0.88%. Greek yields on 10-year and 2-year bonds fell sharply from highs hit on Thursday. Gold fell $18 to $1184 an ounce.

CAC, DAX and Italy soared nearly 4% and FTSE gained 1.7%. The ATHEX composite soared 9%.

AT HOME

After a gap up opening, benchmark indices added significant gains through rest of the session to end higher by a percent and half, extending the winning streak to seventh straight day. Sensex soared 414 points to settle at 27730 while Nifty finished at 8353, up 128 points. BSE mid-cap and small-cap indices gained 1.5% and 1.4% respectively. All the BSE sectoral indices ended in green with Realty index leading the tally with a 5% gain, followed by 2.6% rise in Bankex.

FIIs net bought stocks, index futures and stock futures worth Rs 651 cr, 1418 cr and 779 cr respectively. DIIs were net sellers to the tune of Rs 94 cr.

Rupee appreciated 4 paise to end at 63.51/$.

OUTLOOK

Today morning, Nikkei and Kospi are up more than a percent, other Asian markets are trading with gains in the vicinity of half a percent and SGX Nifty is suggesting a marginally higher start for our market.

Nifty yesterday touched a high of 8369 before closing at 8353, achieving the 200-DMA target of 8360 we had been working with after 34-DMA target of 8220 was achieved.

Next immediate hurdle to eye is around 8400, where the trendline adjoining recent tops on the daily chart is placed. Above 8400 next major hurdle to eye would be 8490, which is the immediate previous top on the weekly chart.

34-DMA, placed at 8220, would now act as the support, with the stop loss of which trading longs can be held on to.