NIFTY TAKES OUT 8308 HURDLE; STAY LONG WITH THE STOP LOSS OF 8240

NIFTY TAKES OUT 8308 HURDLE; STAY LONG WITH THE STOP LOSS OF 8240

WORLD MARKETS                             

US indices gained a quarter of a percent yesterday following positive momentum from Europe and as earnings came in better than expected.

Factory orders for March showed a gain of 2.1%, the biggest increase in eight months and above expectations of a 1.9% increase. 

European markets gained 0.4%-1.4%. The final euro zone manufacturing Purchasing Managers' Index (PMI) for April came in at 52.0, above a flash reading of 51.9 but slightly below March's figure of 52.2.

Nymex oil fell 0.37% to $58.93 a barrel. Gold rose $12.3 to $1187 an ounce.

AT HOME

Benchmark indices soared just under 2% in today's trade, registering the largest single day gain in nearly two months for Nifty and a month for Sensex. Sensex settled at 27491, up 479 points while Nifty finished at 8332, up 150 points. BSE mid-cap and small-cap indices gained 1.3% and 2.1% respectively. All the BSE sectoral indices ended higher with Oil & Gas and Realty indices leading the tally, climbing 3.5% and 2.5% respectively.

FIIs net bought stocks and stock futures worth Rs 61 cr and 749 cr respectively but net sold index futures worth Rs 280 cr respectively. DIIs were net buyers to the tune of Rs 147 cr.

India's HSBC manufacturing PMI fell to 51.3 in April from March's 52.1.

IT services major Cognizant reported better-than-expected 6.2% q-o-q in dollar revenue and also upped its revenue growth guidance for the 2015 fiscal to 19.3% from 19% (to USD 2.92 bn from 2.88 bn).

OUTLOOK

Today morning, except a modestly higher Hang Seng, other Asian markets are trading with modest cuts and SGX Nifty is suggesting about 20 points lower opening for our market.

In yesterday's report we had mentioned that a crossover of 8308 would generate a buy on the hourly chart and can take Nifty to around 8500.

The benchmark yesterday soared 150 points to settle at 8332, crossing this hurdle decisively.

Next target to eye on the way up continues to be around 8500. Immediate support on the hourly chart is placed around 8240, with the stop loss of which trading longs can be held on to.