NIFTY BACK IN THE VICINITY OF 7770 HURDLE; 7670 IS THE IMMEDIATE SUPPORT

NIFTY BACK IN THE VICINITY OF 7770 HURDLE; 7670 IS THE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices gained about half a percent, but closed off the day high yesterday, nevertheless extending Tuesday's gains following Fed Chair Janet Yellen's cautious stance on the path of tightening. 

Dollar index recovered from day low to end 0.4% lower for its third-straight day of decline. Euro hit $1.1364, its highest since Feb 11.

Nymex oil settled up 4 cents at $38.32 a barrel while Brent rose 12 cents to $39.26. EIA announced that U.S. crude stockpiles had risen by 2.3 million barrels in the last week.

European markets, supported by a solid recovery in commodity stocks, gained 0.7%-1.8% with French CAC leading the gains.

AT HOME

After a two day retreat, bulls were back with a vengeance as benchmark indices soared 1.8% to close at the highest level since 6th January. Sensex soared 438 points to settle at 25339 while Nifty finished at 7735, up 138 points. BSE mid-cap and small-cap indices also gained 1.8% each. Except a 0.1% cut in Telecom index, all the sectoral indices ended in green with Realty index and Bankex leading the tally, up 3.8% and 3.1% respectively.

FIIs net bought stocks and index futures worth Rs 1443 cr and 395 cr respectively but net sold stock futures worth Rs 565 cr. DIIs were net sellers to the tune of Rs 397 cr.

Rupee appreciated 17 paise to end at 66.37/$.

OUTLOOK

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

In yesterday's report we had mentioned that 7670 is the immediate hurdle on the hourly chart which should serve as the stop loss for trading shorts.

The benchmark crossed this hurdle in the morning trade itself and surged all the way to 7742 before closing at 7735.

After yesterday's big upmove, Nifty is back in the vicinity of 34-week moving average hurdle placed around 7770. Upon sustained trading above it, next big hurdle as well as the target to watch out would be 200-DMA placed around 7900.

Meanwhile trading longs can be held on to with the stop loss of 7670, which is the immediate support on the hourly chart.