Wednesday, August 27, 2014

PRUDENT MORNING MANTRA - 27.08.2014

NIFTY REBOUNDS FROM OUR INDICATED SUPPORT

WORLD MARKETS

US indices gained between 0.1%-0.3% yesterday, lifting the Dow to an all-time high and the S&P 500 to its first finish above 2,000, after better-than-expected reports cast favorable light on the U.S. economy.

Durable goods order rose 22.6% in July versus a 7.5% estimate, marking their biggest gain on record. A measure of consumer confidence hit 92.4 in August, exceeding estimates of 89.

European markets gained between 0.7%-1.3%

Nymex crude rose 0.5% to $93.9 a barrel; Gold too gained 0.5% to $1285 an ounce.

Israel and Palestine yesterday agreed on a cease-fire agreement aimed at ending their seven-week conflict in Gaza.
                                                             
AT HOME

After falling nearly half a percent, benchmark indices staged a smart comeback in last hour of trade to end almost flat. Sensex gained 6 points to settle at 26443 while Nifty finished at 7904, down 2 points. BSE mid-cap and small-cap indices lost 0.2% and 0.8% respectively. BSE Power and Capital Goods indices lost 1.3% and 0.8% respectively, becoming top losers among the sectoral indices while Healthcare and FMCG indices gained 1.1% and 0.9% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 365 cr, 269 cr and 47 cr respectively. DIIs were net sellers to the tune of Rs 259 cr.

Rupee appreciated 13 paise to close at 60.43/$.

OUTLOOK

Today morning Asian markets are trading with gains in the vicinity of half a percent and SGX Nifty is suggesting about 35 points higher opening for our market.

In our latest weekly and subsequent daily reports, we have been advising holding on to trading longs with the stop loss of 7855. Yesterday, after touching a low of 7862, Nifty rebounded smartly to end at 7905 and is set to open with an upward gap today, vindicating our view.


7855 continues to be important near term support, with the stop loss of which trading longs can be held on to. On the way up, 8000 continues to be the immediate target.

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