10700 ACHIEVED; 10800, 10950 NEXT
US markets were shut yesterday for Martin Luther King, Jr. Day.
Dollar index fell nearly a percent and half to 90.45, marking a three year low. Euro touched its highest levels in three years, climbing as high as $1.2296 before paring some gains to last trade at $1.2268.
Commodities rose on dollar weakness, with gold touching its highest levels in four months and more than 1% gains seen in copper, nickel and zinc.
European markets, except half a percent higher Italy, fell 0.1%-0.3%.
Sensex and Nifty gained 0.6% and 0.7% respectively to hit fresh record highs. Sensex added 251 points to settle at 34844 while Nifty finished at 10741, up 60 points. BSE mid-cap index however ended marginally in the red while the samll-cap index rose just 0.3%. BSE Finance index and Bankex gained 1.6% and 1.2% respectively, becoming top gainers among the sectoral indices while Telecom and Auto indices were the top losers, down 1% and 0.9% respectively.
FIIs net bought stocks and stock futures worth Rs 33 cr and 1671 cr respectively but net sold index futures worth Rs 554 cr. DIIs were net sellers to the tune of Rs 173 cr.
Rupee appreciated 15 paise to end at 63.49/$.
India's wholesale inflation eased marginally to 3.58% in December after hitting an eight-month high of 3.93% in November.
Trade deficit in December rose 41% y-o-y to USD 14.88 bn, a 37-month high, as imports surged 21% to USD 41.91 bn while exports rose 12.4% to USD 27 bn.
Today morning, Asian markets are trading with gains of upto 0.5% and SGX Nifty is suggesting a marginally higher start for our market.
Ever since Nifty took out 10490 hurdle, we have been working with targets of 10700 followed by 10950.
Nifty yesterday surged 60 points to end at 10741, achieving the 10700 target and moving towards the second target of 10950.
As mentioned in yesterday's report, before 10950, 10800 is the immediate target.
After yesterday's upmove, immediate support on the hourly chart has moved up to 10640, with the stop-loss of which, trading longs should be held on to.