NIFTY ACHIEVES 8915 TARGET; STAY LONG WITH THE STOP-LOSS OF 8800

NIFTY ACHIEVES 8915 TARGET; STAY LONG WITH THE STOP-LOSS OF 8800

WORLD MARKETS                             

US indices, after falling into negative territory following the disappoint services data, reversed to end higher by 0.25%-0.5%, with Nasdaq closing at a new all-time high.

The ISM non-manufacturing PMI index for August came in at 51.4, the lowest read since February 2010. The expected reading was 55.0, slightly below a July read of 55.5. The miss, along with Friday's disappointing nonfarm payroll data, cut back expectations of a Federal Reserve rate hike in September.

U.S. Treasuries rose, with the two-year note yield at 0.72% and the benchmark 10-year note yield at 1.54%. Dollar index fell nearly a percent to 94.87 from 95.77. Gold soared $27 to $1354 per ounce.

US oil erased earlier losses to end 0.9% higher at $44.83 a barrel while Brent settled up 0.8% at $47.26.

European markets, except a 0.1% higher DAX, fell 0.2%-0.8%, reacting to lower oil nd poor US service sector data.

AT HOME

Truncated week started with a bang as benchmark indices soared a percent and half with Sensex and Nifty closing at the highest level since 3rd March 2015 and 13th April 2015 respectively. Sensex added 446 points to settle at 28978 while Nifty finished at 8943, up 133 points. BSE mid-cap and small-cap indices rose 1.8% and 1% respectively. All the BSE sectoral indices ended higher with Bankex and Consumer Durable indices leading the tally with gains of 3% each, followed by 2.8% rise in Auto index.

FIIs net bought stocks, index futures and stock futures worth Rs 1439 cr, 331 cr and 1174 cr respectively. DIIs were net sellers to the tune of Rs 268 cr.

Rupee appreciated 30 paise to end at 66.52/$, marking a four month high.

OUTLOOK

Today morning, Asian markets, except a 0.7% lower Nikkei, are trading with modest gains and SGX Nifty is suggesting about 25 points higher start for our market.

Just to reiterate, we had been working with the pattern target of 8915 ever since Nifty broke out of the four-week long 8730-8540 consolidation.

The benchmark soared 133 points to settle at 8943, achieving the target mentioned above and vindicating our view.

As mentioned in yesterday's report, next meaningful target to eye above 8915 is 9119, which is the high made on 4th March 2015. Meanwhile, the highest closing high is 8996 made on 3rd March.

Immediate support on the hourly chart has moved up to 8800, with the stop-loss of which trading longs should be held on to.

BHEL, GAIL and ONGC will report their quarterly earnings today.