NIFTY SET TO CHALLENGE 7550-7600 RESISTANCE AREA

NIFTY SET TO CHALLENGE 7550-7600 RESISTANCE AREA

WORLD MARKETS                             

US indices soared 1.3%-1.8% on Friday, reacting to rise in oil prices and digesting Thursday's European Central Bank stimulus measures. The S&P 500 gained closed above psychologically key 2,000 level and crossed its 200-day moving average for the first time since Dec. 30. Dow also closed above its 200 DMA for the first time since Dec 30.

Nymex oil rose 66 cents or 1.7% to $38.50 a barrel following the International Energy Agency's report that said oil might have bottomed. Baker Hughes data showed U.S. rigs declined by six. 

Also boosting the sentiment was yuan's strongest midpoint fix against the dollar for the year so far at 6.4905 by th PBOC.

In U.S. economic news, February import prices declined 0.3%, while export prices fell 0.4%.

European markets climbed 1.7%-4.8%.

Gold fell $13 to $1259 an ounce.

For the week, US indices gained 1.2%-1.8%.

AT HOME

It turned out to be yet another day of consolidation as benchmark indices ended higher by a third of a percent after a rangebound but choppy trade. Sensex added 95 points to settle at 24718 while Nifty finished at 7510, up 24 points. BSE mid-cap index gained 0.1% while the small-cap index lost 0.2%. BSE FMCG index climbed 1.2%, becoming top gainer among the sectoral indices, followed by 0.5% gain in Healthcare index. Metal and Utilities indices lost the most, down 0.7% and 0.6% respectively.

FIIs net bought stocks and index futures worth Rs 378 cr and 932 cr respectively but net sold stock futures worth Rs 378 cr. DIIs were net sellers to the tune of Rs 433 cr.

Rupee appreciated 2 paise to end at 67.04/$.

India's Index of Industrial Production (IIP) for the month of January came in at -1.5%. December IIP has been revised to -1.2% against -1.3% reported earlier. This is the third consecutive month of decline led by manufacturing which slipped to -2.8% vs -2.4% month-on-month (MoM). Further, the April-January IIP data has slipped to 2.7% against 3.1% (YoY).

The Lok Sabha on Friday passed the Aadhaar bill to provide a unique identity to residents and give legal teeth to the government in ensuring that its subsidies and services directly reach the beneficiaries in entirety.

OUTLOOK

Today morning Asian markets are trading with gains of 1%-2% and SGX Nifty is suggesting about 60 points higher opening for our market.

Today's gap up opening would take the benchmark again in the 7550-7600 region which we have been talking about for quite some time.

7600 is the immediate previous top on the weekly chart a sustained trading above which would open up the space for next big upmove as next meaningful resistance will come around 7840 where 34-week moving average is placed.

7424 continues to be immediate support, with the stop loss of which trading longs should be held on to.