Tuesday, February 7, 2017



WORLD MARKETS                             

US indices fell 0.1%-0.2%, dragged by a drop in oil prices amid uncertainty over U.S. President Donald Trump's policies.

US crude lost 1.5% to settle at $53.01 a barrel and Brent fell 1.9% to $55.7 amid ample U.S. supplies outweighed the Organization of Petroleum Exporting countries production cuts.

U.S. Treasuries gained, pushing the benchmark 10-year note yield lower to 2.419% and the short-term two-year note yield to 1.161%. Dollar index rose about 0.2% to 99.90. Gold gained $11.30 to settle at $1,232 per ounce.

European markets fell 0.2%-2.2% with Italy leading the losses. French 10-year bond yields spiked to 17-month highs after increasing political uncertainty over the outcome of the upcoming Presidential election. German manufacturing data showed that industrial orders surged 5.2 percent in December.


Benchmark indices climbed 0.7% each, extending the winning streak to fourth straight day and closing at the highest level since 23rd September, 2016. Sensex settled at 28439, up 199 points while Nifty added 60 points to finish at 8801. BSE mid-cap and small-cap indices climbed 1.1% and 0.9% respectively. Except a 0.3% lower Metal index, all the BSE sectoral indices ended higher with Realty index leading the tally, up 1.9%, followed by 1.3% rise in FMCG, Consumer Durable and Healthcare indices each.

FIIs net sold stocks and stock futures worth Rs 404 cr and 505 cr respectively but net bought index futures worth Rs 170 cr. DIIs were net buyers to the tune of Rs 450 cr.

Rupee appreciated 10 paise to end at 67.21/$.

ACC and Ambuja Cement soared on reports of LafargeHolcim mulling merger of both the companies.


Today morning, Asian markets are trading with cuts of upto 0.8% with Nikkei leading the losses and SGX Nifty is suggesting a marginally lower start for our market.

Just to reiterate, we have been working with major target of 8970 after 61.8% retracement level of the entire 8970-7894 fall, placed at 8560, was taken out. We had also said that before 8970, 8740, 8800 and 8900 would be the intermediate targets to eye.

The benchmark touched a high of 8814 before closing at 8801, achieving the 8800 target and moving towards the 8900 target.

Immediate support on the hourly chart has moved up to 8680, with the stop-loss of which should serve as the fresh stop-loss for trading longs.

Tata Steel, BHEL, PNB and Titan will report their quarterly earnings today.

Two-day meeting of the six-member Monetary Policy Committee of the Reserve Bank starts today and will deliver its verdict on Repo rate tomorrow.

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