NIFTY SET TO ACHIEVE 8800 TARGET; TRAIL STOP LOSS TO 8660

NIFTY SET TO ACHIEVE 8800 TARGET; TRAIL STOP LOSS TO 8660

WORLD MARKETS                             

US indices gained between 0.3%-0.5% as investors digested a rebound in oil prices and looked for more signals on the timing of an interest rate hike.

Energy stocks led the gainers. Nymex oil rose 37 cents or 0.73% to $50.79 a barrel, recovering from a 6.6% slide on Wednesday.

Jobless claims came in at 281,000, slightly above lowered expectations, but an increase from last week. The four-week average on initial jobless claims fell to the lowest level since 2000. Wholesale trade data came in slightly higher than expected, up 0.3%.

Alcoa unofficially kicked off the earnings season after the bell on Wednesday, reporting adjusted quarterly profit of 28 cents per share, 2 cents above estimates, though revenue was below analyst forecasts.

European markets soared 0.7%-1.4%  as investors reacted to fresh economic data, auto stocks posted strong gains on impressive auto sales and concern about Greece abated with the country raising enough funds to meet a payment to the International Monetary Fund due Thursday.

More data showed that German exports had recovered in February and industrial output for the country also edged higher in the same month. The Bank of England's Monetary Policy Committee kept monetary policy unchanged as expected.

AT HOME

Benchmark indices ended higher by about two third of a percent after an extremely choppy trade, extending the winning streak to fifth straight day and ending at the highest level in a month. Sensex surged 177 points to settle at 28885 while Nifty finished at 8778, up 64 points. BSE mid-cap and small-cap indices gained 0.2% and 0.7% respectively. BSE Bankex soared 2.6%, becoming top gainer among the sectoral indices, followed by 1.4% rise in Metal index. Healthcare index plunged 2.1%, becoming top loser, followed by 0.9% cut in Realty index.

FIIs net bought stocks and index futures worth Rs 194 cr and 248 cr respectively but net sold stock futures worth Rs 261 cr. DIIs were net buyers to the tune of Rs 493 cr.

Rupee ended unchanged at 62.24/$.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 10 points higher opening for our market.

Just to reiterate, we have been advising holding on to trading longs ever since Nifty generated "buy" on the hourly chart after the crossover of 8510. 8700, the 34-DMA was the initial target we were working after which 8800, the 61.8% retracement level of the entire 9119-8269 fall is the next target, we had said.

The benchmark closed at 8778 yesterday and is on track to achieve 8800 target. Above 8800, 8850, where the upper band of bollinger on the daily chart is placed, would be the next target.

Immediate support on the hourly chart has moved up to 8660, with the stop loss of which trading longs should be held on to.

India's IIP for February would be released today and is expected to show a reading of 3.64%, up from 2.6% in January.