ALL EYES ON ECB; STAY LONG WITH THE STOP LOSS OF 8580

ALL EYES ON ECB; STAY LONG WITH THE STOP LOSS OF 8580

WORLD MARKETS

US indices gained between 0.2%-0.5%, extending the rising streak to third day amid bets that the European Central Bank will launch an aggressive stimulus package at Thursday's policy meeting.

News reports suggested that the ECB's executive board had proposed monthly bond purchases of roughly 50 billion Euros in a quantitative easing program that would last at least a year.

U.S. housing starts climbed more than expected in December in a hopeful sign for the sluggish housing-market recovery.

Nymex crude rose $1.41 or 2.8% to $47.78 a barrel after comments from OPEC Secretary-General Abdullah al Badri, who expressed confidence that oil prices will bounce back. Brent gained $1.04 to $49.03.

European markets gained between 0.4%-1.6% with FTSE and Italy leading the tally. The Bank of England voted unanimously to keep rates on hold this month for the first time since July last year.  UK unemployment fell to 5.8%, it lowest level in over six years.

                                                             

AT HOME

Record run continued as benchmark indices gained about four tenth of a percent, extending winning streak to fifth straight day and scaling fresh record high. Sensex settled at 28889, up 104 points while Nifty climbed 34 points to finish at 8730. BSE mid-cap and small-cap indices however lost 0.2% each. BSE Consumer Durable and Teck indices gained the most among the sectoral indices, rising 1.4% and 1.2% respectively while FMCG and Metal indices were the top losers, giving away 1.9% and 0.6% respectively.

ITC nosedived after earnings missed estimates. Net profit grew 10.5% y-o-y to Rs 2635 cr while revenue rose 2.5% to Rs 8942 cr as against the expected growth of 12.6% and 11.7% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 2065 cr, 483 cr and 115 cr respectively. DIIs were net sellers to the tune of Rs 1350 cr.

Rupee appreciated 5 paise to end at 61.6350/$.

The Cabinet Committee on Parliamentary Affairs yesterday recommended to the President the schedule of the budge session of Parliament. The Budget session will begin on February 23; The Railway Budget will be presented on February 26 followed by the tabling of the Economic Survey on February 27. The Union budget will be presented on Saturday, February 28.

OUTLOOK

Today morning, barring a modestly lower Nikkei, other Asian markets are trading with gains of up to 0.8% and SGX Nifty is suggesting about 30 points higher opening for our market.

At the risk of repeating, when Nifty closed above 8446 last Thursday, we had termed it a breakout after a consolidation of one and a half month and had also given a major target of 9000 along with the immediate target of 8627.

The benchmark achieved 8627 target on Tuesday and moved further higher to 8729 yesterday, marching firmly towards the 9000 target.

"Stay long with the trailing stop loss" continues to be the advice. Immediate support on the hourly chart has moved up to 8580, with the stop loss of which trading longs should be held on to.

Cairn India will report its quarterly earnings today.