NIFTY TAKES OUT 9650 HURDLE; STAY LONG WITH THE STOP-LOSS OF 9610

NIFTY TAKES OUT 9650 HURDLE; STAY LONG WITH THE STOP-LOSS OF 9610

WORLD MARKETS                             

US indices soared 0.7%-1.4% with Dow and S & P 500 closing at record high. Nasdaq gained the most among 3 as technology stocks recovered from last week's sell-off. 

Also lifting investor sentiment were the results from the French parliamentary election, which ended with Emmanuel Macron's party clinching a majority.

New York Fed President William Dudley said inflation should rise as the labor market improved, which would allow the Federal Reserve to proceed with plans to tighten monetary policy.

Treasury yields erased earlier losses following Dudley's statement, with the benchmark 10-year yield climbing to 2.19%. Dollar index gained about a third of a percent to 97.45.

WTI crude fell 1.2% to $44.20 per barrel, marking a fresh seven month low. Brent lost 40 cents to $46.97.

European markets gained 0.4%-1.1%, shrugging off two terror attacks in London and Paris. Brexit negotiations began yesterday between the U.K. and the European Union, with the U.K.'s Brexit Secretary saying he hoped for a "strong and special partnership."

AT HOME

Sensex and Nifty soared 0.8% and 0.7% respectively, rising the most since 26th May. Sensex added 255 points to settle at 31312 while Nifty finished at 9658, up 70 points. Broader market however underperformed with BSE mid-cap index up just 0.1% and small-cap index down 0.1%.  BSE Metal index and Bankex were the top gainers among the sectoral indices, rising 1.9% and 1% respectively. Healthcare and Realty indices were the top losers, down 0.5% and 0.3% respectively.

FIIs net sold stocks and stock futures worth Rs 250 cr and 937 cr respectively but net bought index futures worth Rs 145 cr. DIIs were net buyers to the tune of Rs 530 cr.

Rupee appreciated 1 paise to end at 64.42/$.

Punjab Chief Minister Amarinder Singh yesterday announced total waiver of crop loans up to Rs 2 lakh of small and marginal farmers, and a flat Rs 2 lakh relief for all marginal farmers, irrespective of the loan amount.

OUTLOOK

Today morning, Nikkei is up more than a percent on yen weakness, other Asian markets are trading with gains of upto 0.4% and SGX Nifty is suggesting about 10 points higher start for our market.

Nifty yesterday touched a high of 9673 before closing at 9658, taking out the immediate hurdle of 9650. 9710, the top made on 6th June, is the immediate target on the way up above which 9850 would be the next target.

Immediate support on the hourly chart is placed around 9610, with the stop-loss of which trading longs should be held on to.