NIFTY ON TRACK TO ACHIEVE 9000 TARGET; TRAIL STOP LOSS TO 8650

NIFTY ON TRACK TO ACHIEVE 9000 TARGET; TRAIL STOP LOSS TO 8650

WORLD MARKETS                             

US indices surged between 1.5%-1.8%, extending gains into a fourth session, on the back of the ECB's larger-than-expected easing measures and upbeat quarterly earnings from companies including Southwest Airlines.

ECB President Mario Draghi said the central bank would make monthly bond purchases of as much as 60 billion Euros ($69 billion) starting in March, and running through September of next year. Total size of the program comes to 1.14 trillion euro. Sovereign bond purchases will be subject to risk-sharing arrangements, to minimize the risk on the ECB's balance sheet.

Economic data had 307,000 Americans filing for jobless benefits last week, down 10,000 but more than the 300,000 forecast

Euro fell to a more than 11 year low against the dollar at $1.1334. Nymex crude fell $1.47 or 3.1% to $46.31 a barrel while Brent fell 51 cents to $48.52. Gold rose 0.5% to $1301 an ounce.

European markets gained between 1%-2.5%.

AT HOME

Benchmark indices ended higher by four tenth of a percent after a choppy trading session, extending the winning streak to sixth straight day and closing at fresh record high. Sensex gained 117 points to settle at 29006 while Nifty finished at 8791, up 32 points. BSE mid-cap and small-cap indices gained 0.1% and 0.2% respectively. Except a 1% and 0.8% cut in Consumer Durable and Oil & Gas indices respectively, all the BSE sectoral indices ended in green with Healthcare and Capital Goods indices leading the tally, putting on 1.7% and 1.1% respectively.

FIIs net bought stocks and index futures worth Rs 593 cr and 902 cr respectively but net sold stock futures worth Rs 501 cr. DIIs were net sellers to the tune of Rs 579 cr.

Rupee depreciated by 6 paise to $61.6950.

OUTLOOK

China's January HSBC flash manufacturing PMI has come in at 49.8 vs 49.6 in December.

Asian markets are trading with gains in the vicinity of a percent and SGX Nifty is suggesting about 85 points higher opening for our market.

Just to reiterate, ever since Nifty closed above the upper band of bollinger on the daily chart on 15th January, we have been working with a major target of 9000 and have been advising holding on to trading longs with a trailing stop loss.

The benchmark has since then moved up to 8761 and is set to open with a big upward gap up today, rapidly moving towards the 9000 mark.

Immediate support on the hourly chart has now moved up to 8650, with the stop loss of which trading longs should be held on to.

Ultratech Cement will report its quarterly earnings today.