NIFTY CONTINUES TO CONSOLIDATE; RAILWAY BUDGET IN FOCUS TODAY

NIFTY CONTINUES TO CONSOLIDATE; RAILWAY BUDGET IN FOCUS TODAY

WORLD MARKETS                             

US indices ended mixed with Dow gaining 0.1% while S & P 500 and Nasdaq ended marginally lower amid firming oil prices, moderate housing data and some debate over Fed Chair Janet Yellen's congressional testimony.

Fed chair reiterated her remarks on yesterday in front of the House Financial Services Committee.

New U.S. single-family home sales in January fell a less-than-expected 0.2% to 481,000 and supply rose to its highest level since 2010, hopeful signs for the sluggish housing market. Mortgage applications to purchase a home rose 5 percent on a seasonally adjusted basis for the week ending Feb. 20 from the previous week.

The U.S. Energy Information Administration reported that weekly crude inventories rose 8.4 million barrels, more than expected.

Nymex crude rose $1.71 or 3.47% to $50.99 a barrel and brent climbed $3 or 5% to $61.63 a barrel after Saudi Arabia's oil minister said oil demand was growing and data showed Chinese factories were producing more than expected.

European markets too ended mixed with marginal changes.

AT HOME

After rising nearly a percent in the initial trade, benchmark indices gave away most of the gains in the late noon sell-off to end almost flat. Sensex settled at 29008, up 3 points while Nifty finished at 8767, up 5 points. BSE mid-cap and small-cap indices lost 0.2% and 0.4% respectively. BSE Healthcare index and Bankex were the top losers among the sectoral indices, giving away 1% and 0.7% respectively while Teck and IT indices gained 0.5% and 0.4% respectively.

FIIs net bought stocks and stock futures worth Rs 516 cr and 386 cr respectively but net sold index futures worth Rs 931 cr. DIIs were net buyers to the tune of Rs 20 cr.

Rupee appreciated 23 paise to end at 3-week high of 61.96/$.

OUTLOOK

Today morning Asian markets, except a half a percent higher Nikkei, are trading with modest cuts. SGX Nifty is suggesting a marginally higher start for our market.

In yesterday's report we had mentioned that immediate resistance on the hourly chart is placed at 8830, which should serve as the stop loss for trading shorts. Nifty touched a high of 8840 in the initial trade but could not sustain there and slipped to end at 8767.

We had also mentioned that Nifty is currently in a consolidation mode and that upper and lower boundaries of this consolidation are placed around 8900 and 8650 respectively and had advised that traders should stay light till this range breaks. That continues to be the advice.

Railway minister Suresh Prabhu will present Railway budget for the FY15-16 in the Parliament today. The budget is expected to be tight on populist measures and focus on generating extra revenue through innovative measures. To allow money to flow through FDI and PPP, the minister may announce relaxation of certain norms and setting up of a single window clearance system. Passengers may expect more measures for better amenities and improved safety on board.