NIFTY CROSSES 8275 HUMP; STAY LONG WITH THE STOP-LOSS OF 8230

NIFTY CROSSES 8275 HUMP; STAY LONG WITH THE STOP-LOSS OF 8230

WORLD MARKETS                             

Dow lost 0.2%, S & P 500 ended flat while Nasdaq rose 0.4% yesterday as healthcare stocks gained and markets awaited for a key news conference from the U.S. president-elect Trump.

Oil extended fall with WTI down 2.2% at $50.82 and Brent down 2.4% to $53.60 a barrel.

President elect Trump yesterday praised Fiat Chrysler after the automaker announced plans to invest in Ohio and Michigan. He also thanked Ford Motor via Twitter for saying last week it would expand in Michigan rather than build a plant in Mexico.

Dollar index rose slightly to 102.04 from 101.84. U.S. Treasuries were mixed, with the two-year note yield trading flat at 1.185% and the benchmark 10-year note yield rising to 2.383%.

Commodities climbed after data from China showed producer prices jumped 5.5% y-o-y in December. Lead, Copper and Zinc gained 4%, 3% and 2% respectively.

Back in the US, the NFIB's small business sentiment index for December hit a 12-year high. Wholesale inventories rose 1%, slightly above estimates. The job openings and labor turnover survey (JOLTS) for November showed job openings remained little changed at 5.5 million.

European markets, except a 0.4% lower Italy, gained upto half a percent. Basic resources were the best performers after China data. FTSE hit a record high with help from falling currency.

AT HOME

After a gap up opening, benchmark indices added more gains through the session to end higher by two third of a percent, breaking two-day losing streak and closing at a two-month high. Sensex added 173 points to settle at 26900 while Nifty finished at 8289, up 53 points. BSE mid-cap and small-cap indices gained 0.8% and 0.7% respectively. Except a 0.4% lower Realty index, all the BSE sectoral indices ended in green with Industrial index leading the tally, up 1.6%, followed by 1.3% higher Metal and Auto indices.

FIIs net sold stocks and index futures worth Rs 21 cr and 204 cr respectively but net bought stock futures worth Rs 436 cr. DIIs were net buyers to the tune of Rs 253 cr.

Rupee appreciated 3 paise to end at 68.18/$.

Indusind Bank reported 29.2% growth in December quarter net profit at Rs 751 cr. NII rose 34.5% to Rs 1578 cr. Gross NPA ratio rose to 0.94% from 0.90% sequentially while net NPA ratio stood at 0.39% as against 0.37%.

OUTLOOK

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

Nifty yesterday closed at 8289, crossing the 8275 top made in December as well as the 200 DMA which is currently placed at 8286. Next major target, as well as the resistance, would come around 8430, where 20 as well as 34-week moving averages are placed.

Immediate support on the hourly chart has moved up to 8225, with the stop-loss of which trading longs should be held on to.