DOVISH FED MINUTES BOOST EQUITIES; STAY LONG WITH THE STOP LOSS OF 8055
Dow and S & P 500 gained 0.8% each and Nasdaq rose 0.4% yesterday, fueled by dovish signals from the U.S. Federal Reserve minutes. Dow closed above 17,000 for the first time since Aug. 19.
The September meeting minutes indicated that policymakers were still watching inflation and the impact of slower global growth.
Weekly jobless claims declined to 263,000, a near 42-year low
Energy stocks were the top gainers as nymex oil surged 3.4% to settle at $49.43 a barrel
Earlier Nikkei ended lower by a percent and Shanghai Composite, which opened after a week-long holiday, gained 3%.
European markets gained upto 0.7%. German exports slumped 5.2% in August, it's steepest decline since the height of the financial crisis in 2009.
Benchmark indices ended lower by about two third of a percent, breaking six-day winning streak. Sensex settled at 26846, down 190 points while Nifty lost 48 points to end at 8129. BSE mid-cap and small-cap indices lost 1% and 0.2% respectively. Except a 0.3% and 0.2% rise in BSE Metal and Consumer Durable indices respectively, all the sectoral indices ended in red with FMCG and Healthcare indices leading the tally, giving away 1% each.
FIIs net sold stocks and stock futures worth Rs 49 cr and 631 cr respectively but net bought index futures worth Rs 579 cr. DIIs were net sellers to the tune of Rs 300 cr.
Rupee depreciated 7 paise to end at 65.05/$.
Today morning Asian markets are trading with gains of 0.5%-1.5% and SGX Nifty is suggesting about 60 points higher start for our market.
In yesterday's report we had reiterated the upside targets of 8220 followed by 8380 and had advised holding on to trading longs with the stop loss of 8055.
Nifty, after touching a high of 8197 in the opening trade, slipped to end at 8129.
A gap up opening today will again take the benchmark closer to the 8200 mark.
8220, where the 20-week moving average as well as the upper level of the gap created by the big gap down opening on 24th August are placed, continues to be immediate target, a sustained trading above which will open up the space for the further upside till about 8380, where the 200-DMA is placed.
Immediate support on the hourly chart continues to be at 8055, with the stop loss of which trading longs can be held on to.
Indusind Bank will report its quarterly earnings today.