STAY LONG WITH THE STOP LOSS OF 8333

STAY LONG WITH THE STOP LOSS OF 8333

WORLD MARKETS                             

Dow and S & P 500 lost 0.2% and 0.1% respectively while Nasdaq ended marginally higher after Fed minutes mostly confirmed market expectations for a rate hike later this year.

The Fed minutes showed policymakers mostly brushed aside the wobbly start the U.S. economy has had in 2015, attributing the lack of growth to "transitory" factors that will abate soon. Only a few policymakers supported a June rate hike

U.S. Treasury yields fell with the 10-year near 2.26%, remaining within the 2.2 and 2.3% range. The dollar held gains against the euro, trading at $1.1104.

Nymex oil rose 99 cents or 1.71% to $58.98 a barrel. Gold rose $2 to $1209 an ounce.

European markets, except a marginally lower DAX, gained 0.2%-0.7%. The Greek government's parliamentary speaker yesterday said that Athens will not make the June 5 payment unless it has reached a deal with its creditors.

AT HOME

After gaining nearly eight tenth of a percent in the first half an hour, benchmark indices saw a rangebound but choppy trading through rest of the session and finally ended higher by seven tenth of a percent. Sensex settled at 27837, up 192 points while Nifty gained 58 points to finish at 8423. These were the highest closing levels for both the indices in nearly a month. BSE mid-cap index ended absolutely flat while the small-cap index gained 0.2%. BSE IT and Tech indices soared 1.8% and 1.5% respectively, becoming top gainers among the sectoral indices. Metal and Auto indices were the top losers, giving away 0.8% and 0.5% respectively.

FIIs net bought stocks and index futures worth Rs 123 cr and 853 cr respectively but net sold stock futures worth Rs 11 cr. DIIs were net buyers to the tune of Rs 104 cr.

Rupee depreciated 15 paise to end at 63.82/$.

Tata Steel reported a consolidated net loss of Rs 5674 crore in the quarter ended March 2015 against a profit of Rs 1036 crore in corresponding quarter last fiscal. An exceptional loss of Rs 4811 crore dented the company's profit. Total income fell 20.6% to Rs 33666 cr. Operating margin stood at 4.6% against 11.8%.

OUTLOOK

China's HSBC flash PMI for May has come in at 49.1, weaker than the forecast of 49.3 but better than the 48.9 final showing in April.

Today morning, Nikkei and Shanghai are up about half a percent but other Asian markets are trading with average cuts of half a percent. SGX Nifty is suggesting about 20 points higher opening for our market.

As readers would recall, we had turned our near term view bullish since Nifty crossed 8333 on Monday, which confirmed a higher-top higher-bottom formation on the daily chart. Since then we have been working with the major upside target of around 8600, where the trendline adjoining tops made in March and April is placed.

That continues to be the view.

8333, the erstwhile resistance, will now act as immediate support, with the stop loss of which trading longs should be held on to.

Bajaj Auto and ZEEL will report its quarterly earnings today.