15000 IN SIGHT; 14469 IS THE IMMEDIATE SUPPORT

 

15000 IN SIGHT; 14469 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Nasdaq climbed 1.2% while Dow and S & P 500 rose 1.1% each on the back of positive economic data and progress on new stimulus package. S & P 500 and Nasdaq hit a record high.

 

Weekly jobless claims stood at 779,000, the lowest since Nov. 28 and below the 830,000 expected by economists. Factory orders in December rose by 1.1%, beating estimate.

 

Meanwhile, January jobs report, to be released today, is expected to show an addition of 50,000 payrolls, after a decline of 140,000 in December. The unemployment rate is expected to stay at 6.7%

 

The yield on the benchmark 10-year Treasury note rose to 1.139%, while that on the 30-year Treasury bond advanced to 1.935%. The dollar index rose 0.5% to 91.509, hitting a more than two-month high. Spot gold fell 2.3% to $1,791.76 per ounce.

 

Brent crude gained 41 cents, or 0.7%, to $58.87 a barrel while WTI crude settled 0.6% higher at $56.02 a barrel. On Wednesday, OPEC and allies extended their oil supply pact at existing levels.

 

In Europe, except 0.1% lower FTSE, other markets gained 0.9%-1.6%, with Italy on the top. The Bank of England left monetary policy unchanged, with its main lending rate held at 0.1% and target stock of asset purchases kept at £895 billion ($1.2 trillion).

 

AT HOME

 

Benchmark indices rose seven tenth of a percent, extending the winning streak to fourth straight day and hitting yet another record high. Sensex added 358 points to settle at 50614 while Nifty finished at 14895, up 105 points. Nifty mid-cap and small-cap indices climbed 1.1% and 1.6% respectively. BSE Power and FMCG indices surged 2.6% and 2.3% respectively, becoming top gainers among the sectoral indices while Telecom and Teck indices were the top losers, down 0.6% and 0.4% respectively.

 

FIIs net bought stocks and stock futures worth Rs 1937 cr and 518 cr respectively but net sold index futures worth Rs 1555 cr. DIIs were net sellers to the tune of Rs 769 cr.

 

Rupee was little changed at 72.9525/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of upto 1% and SGX Nifty is suggesting around 50 points higher start for our market.

 

At the risk of repeating, we had turned our view on Nifty bullish after 14075 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

 

In yesterday's report we had said reiterated upside target of 15000 and had advised holding on to long positions with the stop-loss of 14336.

 

Nifty surged to touch a high of 14913 before closing at 14895 and is set to open near 14950 today.

 

15000-15050, around which a trendline adjoining tops made in 2010 and 2015 is placed, continues to be next major target/resistance to eye.

 

14469, the upper end of the gap created by Tuesday's gap-up opening, would now act as immediate support, with the stop-loss of which, trading longs can be held on to.

While Monetary Policy Committee is expected to leave interest rate unchanged when it ends its meeting today, RBI's commentary on liquidly management would be keenly watched out in light of enhanced government borrowing.

M & M and Britannia will report their quarterly earnings today.