NIFTY TAKES OUT 8333 HURDLE; STAY LONG WITH THE STOP LOSS OF 8270
US indices gained 0.1%-0.6% yesterday, with the Dow Jones industrial average and S&P 500 ending at new records, as investors shook off earlier concerns about Greek debt and a renewed rise in bond yields.
The National Association of Home Builders' survey showed builder confidence slipped two points in May, missing expectations of a slight gain.
European markets gained 0.1%-1.3%. Greece continued to be in focus. A spokesman for the Greek government said the country needed a deal agreement with creditors by the end of the month, as fears grow that the country is on the verge of bankruptcy.
Meanwhile a letter from the country's officials to the International Monetary Fund revealed that Greece came close to defaulting on a 750 million euro ($860 million) repayment last week.
Greek bond yields soared, with the 10-year leaping 7%, as a leaked internal memo from the International Monetary Fund said the country had little chance of making the June 5 payment. Spanish and Italian bond yields also briefly jumped more than 7%, while the German bund yield gained 3% to yield 0.65%.
U.S. Treasury yields edged higher, with the 10-year note yield briefly topping 2.23% and the 30-year climbing as high as 3.03%. Dollar index gained more than a percent.
Nymex oil settled down 26 cents to $59.43 a barrel.
Benchmark indices soared a percent and third in today's trade to close at the highest level since 23rd April. Sensex settled at 27687, up 363 points while Nifty gained 111 points to finish at 8374. BSE mid-cap and small-cap indices gained 1% each. Except a 0.2% cut in BSE Realty index, all the sectoral indices ended higher with Consumer Durable and Oil & Gas indices leading the tally, putting on 2.2% and 2.1% respectively.
FIIs net sold stocks and stock futures worth Rs 202 cr and 76 cr respectively but net bought index futures worth Rs 229 cr. DIIs were net buyers to the tune of Rs 619 cr.
Rupee depreciated 20 paise to end at 63.71/$.
Today morning Asian markets are trading with gains of upto a percent but SGX Nifty is suggesting about 20 points lower opening for our market.
In yesterday's report we had mentioned that a crossover of 8333 will confirm a higher-top higher-bottom formation on the daily chart. The benchmark yesterday surged 111 points to settle at 8374, closing above the 8333 hurdle mentioned above.
Next target to eye on the way up is around 8450, where the upper band of bollinger on the daily chart is placed. Above 8450, 8600, where the trendline adjoining tops made in March and April is placed.
8270, the low made yesterday, should work as the immediate support, with the stop loss of which trading longs can be held on to.