NIFTY SOARS AFTER TAKING OUT 7780 HURDLE; STAY LONG WITH THE STOP LOSS OF 7760

NIFTY SOARS AFTER TAKING OUT 7780 HURDLE; STAY LONG WITH THE STOP LOSS OF 7760

WORLD MARKETS                             

Dow lost 0.2% while S & P 500 and Nasdaq gained 0.1% and 0.3% respectively as helthcare stocks rose while materials and energy declined tracking fall in oil and metal prices.

Nymex oill fell $1.22 or 2.7% to $43.44 a barrel while Brent dipped 3.8% to $43.63.

Base metals on LME also finished down, with copper off 2.6%, aluminium down 2.3% and nickel down 5%. Gold tumbled $27 to $1267 an ounce, its worst day since Feb. 16.

Dollar index rose 0.3%, extending the winning streak to fifth day. Japanese Finance Minister said that Tokyo is ready to intervene in the currency market if yen moves are volatile enough to hurt the country's trade and economy.

In Europe, FTSE and Italy fell 0.2% and 0.9% respectively while DAX and CAC climbed 1.1% and 0.5% respectively.

AT HOME

Sensex and Nifty soared 1.8% and 1.7% respectively, registering the largest single day gain since 13th April. Sensex settled at 25689, up 460 points while Nifty added 133 points to finish at 7866. BSE mid-cap and small-cap indices gained 1.2% each. All the BSE sectoral indices ended in green with Bankex and Finance indices leading the tally, up 2.4% each.

FIIs net bought stocks and index futures worth Rs 224 cr and 695 cr respectively but net sold stock futures worth Rs 857 cr. DIIs were net buyers to the tune of Rs 351 cr.

Rupee depreciated 4 paise to end at $66.58.

HUL reported 7.1% growth in Jan-March quarter net profit at Rs 1090 cr while total income grew 3.5% to Rs 7946 cr. EBIDTA rose 11.4% to Rs 467 cr while EBIDTA margins stood at 18.5% vs 17.2%. However, volume growth stood at 4%, down from 6% y-o-y.

OUTLOOK

China's April CPI has shown an uptick of 3.4% y-o-y while PPI is down 3.4%.

Nikkei is up more than a percent while other Asian markets are trading mixed with modest changes. SGX Nifty is suggesting about 20 points lower opening for our market.

In yesterday's report we had mentioned that 7780 is the immediate resistance, a crossover of which will generate a buy on the hourly chart and would pave the way for further upmove.

The benchmark crossed 7780 hurdle in the initial trade itself and as expected surged all the way to 7874 before closing at 7866.

7890, the top made on 3rd May, is the immediate hurdle on the hourly chart upon crossover of which 7992, the top made in April would be the next major target as well as the hurdle to eye.

Immediate support on the hourly chart is placed at 7760, with the stop loss of which trading longs should be held on to.

ZEEL will report its quarterly earnings today.