TRAIL STOP-LOSS TO 8790
US markets were shut yesterday for the President's Day Holiday.
European markets ended mixed with 0.6% higher DAX, flat FTSE and modestly lower CAC and Italy. Euro zone consumer confidence fell to minus 6.2 percent during February, compared to minus 4.8 for January.
Oil prices rose with Brent up 0.7% at $56.18 a barrel. U.S. crude added 0.5% to $53.69. Media reports suggested top OPEC producer Saudi Arabia's crude oil shipments fell in December to 8.014 million barrels per day (bpd) from 8.258 million bpd in November.
After a flattish start, benchmark indices saw a sustained northward move through the session to end higher by two-third of a percent, closing at five-month high. Sensex soared 193 points to settle at 28662 while Nifty finished at 8879, up 57 points. BSE mid-cap and small-cap indices added 0.7% and 0.9% respectively. BSE Metal index climbed 2%, becoming top gainers among the sectoral indices, followed by 1.6% each rise in IT and Teck indices.
FIIs net sold stocks and index futures worth Rs 433 cr and 1141 cr respectively but net bought stock futures worth Rs 540 cr. DIIs were net buyers to the tune of Rs 828 cr.
Rupee appreciated 8 paise to end at 66.92/$.
TCS announced buyback of upto 5.6 cr equity shares, representing 2.85% of total paid-up equity share capital of the company for an aggregate amount not exceeding Rs 16000 cr. The buyback price has been set at Rs 2850 per share.
Today morning Asian markets are trading with gains of 0.2%-0.9% and SGX Nifty is suggesting a marginally higher start for our market.
In yesterday's report we had reiterated the view that 8900-8970 region, where the trendline adjoining tops made in March 2015 and September 2016 is placed, continues to be the major target as well as the resistance area.
The benchmark touched a high of 8886 before closing at 8879, moving towards this target area.
Meanwhile, immediate support on the hourly chart has moved up to 8790, with the stop-loss of which, existing longs can be held on to.