NIFTY BREAKS OUT OF THE 9 DAY CONSOLIDATION; STAY LONG WITH THE STOP LOSS OF 8550

NIFTY BREAKS OUT OF THE 9 DAY CONSOLIDATION; STAY LONG WITH THE STOP LOSS OF 8550

WORLD MARKETS                             

US indices fell upto 0.4% yesterday as falling oil price weighed on energy stocks.

WTI crude fell $1.06 or 2.4% to $43.13 to hit its lowest since late April after data showed an inventory rise of 1.1 million barrels at the Cushing, Oklahoma delivery base for U.S. crude futures in the week to July 22.  Brent finished down 97 cents, or 2.12%, at $44.72.

Dollar index ended modestly lower. Gold fell $4 to $1320 an ounce.

European markets ended mixed with changes of upto half a percent. German Ifo business climate index fell slightly to 108.3 in July from 108.7 in June, but was ahead of expectations.

AT HOME

After trading in a narrow range for last nine sessions, benchmark indices broke out on the upside by gaining more than a percent with Nifty and Sesex closing at the highest level since 16th April 2015 and 10th August 2015 respectively. Sensex added 292 points to settle at 28095 while Nifty finished at 8636, up 94 points. BSE mid-cap and small-cap indices gained 1% each. All the BSE sectoral indices ended in green with Bankex and Finance indices leading the tally, up 1.6% each.

FIIs net bought stocks worth Rs 891 cr but net sold index futures and stock futures worth Rs 288 cr and 631 cr respectively. DIIs were net sellers to the tune of Rs 68 cr.

Rupee depreciated 26 paise to end at 67.35/$.

OUTLOOK

Today morning Nikkei is down more than a percent owing to stronger Yen, other Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

For last couple of sessions we have been mentioning that Nifty is stuck in 8595-8475 range, a breach of which, on either side, is required for fresh move.

The benchmark yesterday surged to close at 8636, breaking out of the above mentioned range on the upside.

While 8700-8715 is the immediate target, 8845, the top made in April 2015, is the next major target to eye.

8550 is the immediate support on the hourly chart, with the stop loss of which, trading longs should be held on to.

Maruti, Dr Reddy, ZEEL, ACC, Ambuja Cement and TVS Motors will report their quarterly earnings today.

US Fed begins its two-day meeting today. While the central bank is not generally expected to raise rates, indications in the statement on the timing of the next hike will be key.