NIFTY SURGES TOWARDS 7800 TARGET; TRAIL STOP LOSS TO 7600

NIFTY SURGES TOWARDS 7800 TARGET; TRAIL STOP LOSS TO 7600

WORLD MARKETS                             

Dow and S & P 500 gained 0.1% each while Nasdaq rose 0.3% yesterday

Existing home sales declined 7.1% in February to an annual rate of 5.08 million units, the lowest level since November. Chicago Fed national activity index posted a decline to minus 0.29 in February from 0.41 in January.

Nymex crude April future rose 47 cents or 1.2% to $39.91 a barrel after data showed crude inventories at the Cushing, Oklahoma, delivery hub for U.S. futures fell for the first time since January. Brent rose 34 cents or 0.8% to $41.54 .

European markets, except a half a percent higher Italy, lost upto 0.8%.

Earlier, Shanghai composite surged more than 2% after state-backed China Securities Finance, which lends brokerages money to fund margin financing, late Friday said it would resume some short-term lending businesses and cut borrowing costs for brokerages.

Gold fell $10 to $1244 an ounce.

AT HOME

After a positive start, benchmark indices builded on the initial gains through the session to finish with hefty gains of a percent and a third and closing at the highest level since 6th January. Sensex soared 333 points to settle at 25285 while Nifty finished at 7704, up 100 points. BSE mid-cap and small-cap indices climbed 1.4% each. All the BSE sectoral indices ended higher with Industrial and Capital Goods indices leading the tally, up 2.2% and 2% respectively.

FIIs net bought stocks and index futures worth Rs 1396 cr and 251 cr respectively but net sold stock futures worth Rs 78 cr. DIIs were net sellers to the tune of Rs 619 cr.

Rupee depreciated 3 paise to end at 66.53/$.

OUTLOOK

Today morning Nikkei, after yesterday’s holiday, has opened up about 2%, other Asian markets are trading mixed and SGX Nifty is suggesting a marginally higher start for our market.

In yesterday's report we had clearly mentioned that having taken out the 7600 hurdle decisively, Nifty is now headed to 7800, where the 34-week moving average is placed. The benchmark soared 100 points to finish at 7704, moving towards 7800 target and vindicating our view.

7800 continues to be major upside target to eye. 7600, the erstwhile resistance, will now act as the immediate support, with the stop loss of which trading longs should be held on to.