NIFTY BREAKS 8715 SUPPORT; STAY SHORT WITH THE STOP-LOSS OF 8825

NIFTY BREAKS 8715 SUPPORT; STAY SHORT WITH THE STOP-LOSS OF 8825

WORLD MARKETS                             

Dow and S & P 500 added half a percent each while Nasdaq gained 0.6% for a fresh record high on continued optimism over President Donald Trump's economic agenda of tax cuts and infrastructure spending.

the consumer price index (CPI) rose a more-than-expected 0.6% in January, the largest monthly gain since February 2013. At 2.5%, y-o-y rise was the biggest since March 2012. January retail sales rose 0.4% after an upwardly revised 1% gain in December. Business inventories for December rose 0.4% and the February read on U.S. home builder sentiment showed a decline.

U.S. Treasury yields spiked following data releases, with the benchmark 10-year note yield breaking above 2.5%, while the shorter-term two-year note yield climbed to 1.26%. Dollar index, after touching a high of 101.76, slipped to end at 101.09. Gold rose $8 to $1233 an ounce.

US oil fell 9 cents to $53.11 a barrel.

European markets, except a 0.7% lower Italy, gained between 0.2%-0.8%. U.K. unemployment data met forecasts with a rate of 4.8%.

AT HOME

Sensex and Nifty plunged 0.65% and 0.8% respectively, suffering the worst fall in two-weeks and also closing at two-week low. Sensex slipped 184 points to settle at 28156 while Nifty finished at 8725, down 68 points. BSE mid-cap and small-cap indices fell 1.2% and 1.5% respectively. Except a 0.1% higher FMCG index, all the BSE sectoral indices ended in red with Realty and Industrial indices leading the tally, down 3.5% and 3.1% respectively.

FIIs net bought stocks and index futures worth Rs 226 cr and 689 cr respectively but net sold stock futures worth Rs 1667 cr. DIIs were net buyers to the tune of Rs 249 cr.

Rupee appreciated 2 paise to end at 66.90/$.

Cabinet yesterday cleared merger of SBI's associated banks with SBI.

India's trade deficit narrowed to $9.84 bn in January from $10.37 in December.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a marginally higher start for our market.

Nifty yesterday touched a low of 8713, breaking the lower end of the 8715-8825 consolidation phase by a bit, but rebounded immediately to end above it at 8725. A sustained trading below 8715 will also break a trendline support on daily chart and next meaningful target to eye in that case would be around 8540, the bottom made on the budget day.

Nevertheless, a sell has been generated on the hourly chart and traders can hold on to short positions with the stop-loss of 8825.