NIFTY ACHIEVES 8627 TARGET; STAY LONG WITH THE STOP LOSS OF 8490

NIFTY ACHIEVES 8627 TARGET; STAY LONG WITH THE STOP LOSS OF 8490

WORLD MARKETS                             

US indices, after slipping into the negative territory in the morning trade, rebounded nearly a percent from the bottom of the day, with Dow ending marginally higher while S & P 500 and Nasdaq gained 0.2% and 0.4% respectively.

Johnson & Johnson fell after the health-products supplier reported international sales fell about 7% in the fourth quarter.

Nymex crude tumbled $2.30 or 4.7% to $46.39 a barrel after the International Monetary Fund cut its 2015 global economic forecast on lower fuel demand and key producer Iran hinted prices could drop to $25 a barrel without supportive OPEC action. Brent oil fell 70 cents to $48; gold rose for a seventh session, up $17.30 or 1.4% to $1294 an ounce.

European markets gained between 0.1%-1.2% amid speculation that the European Central Bank (ECB) will announce a full-scale bond-buying program when it meets on Thursday. Germany's ZEW economic sentiment index for January soared to 48.4, up from 34.9 in December and reaching its highest reading since February 2014.

AT HOME

It was a historic day as benchmark indices surged just under two percent to end at fresh record high. Sensex soared 523 points to settle at 28785 while Nifty finished at 8696, up 145 points. BSE mid-cap and small-cap indices however gained just 0.4% each. Except a marginally lower Consumer Durable and Power indices, all other sectoral indices ended in green with Metal index leading the tally, up 3%, followed by 1.8% rise in Bankex.

FIIs net bought stocks, index futures and stock futures worth Rs 1276 cr, 1749 cr and 295 cr respectively. DIIs were net sellers to the tune of Rs 762 cr.

Rupee appreciated 2 paise to end at 61.69/$.

Kotak Mahindra Bank reported 36.6% rise in standalone net profit at Rs 464.5 cr, aided by strong other income and lower provisions. NII rose 16% to Rs 1029 cr. Gross NPAs declined 2 bps q-o-q to 1.87 and net NPAs fell 3 bps to 0.97%.

OUTLOOK

Today morning, barring a half a percent lower Nikkei, other Asian markets are trading with gains in the vicinity of half a percent and SGX Nifty is suggesting about 20 points higher opening for our market.

Readers would recall that when Nifty closed above 8446 on last Thursday, we had mentioned that this marks 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 surged 145 points yesterday to end at  8696, achieving the 8627 target and moving further higher, vindicating our view.

9000 continues to be the next major target and "stay long with the trailing stop loss" continues to be the advice. Immediate support on the hourly chart has moved up to 8490, with the stop loss of which trading longs should be held on to.

ITC will report its quarterly earnings today.