NIFTY SET TO ACHIEVE 8430 TARGET; 8285 IMMEDIATE SUPPORT

NIFTY SET TO ACHIEVE 8430 TARGET; 8285 IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices fell 0.2%-0.3% with financials leading the losses following disappointment from the Trump conference.

In economic news, weekly jobless claims rose less than expected, while U.S. import prices rose in last month, boosted by higher oil prices.

Dollar fell 0.4% to 101.45. U.S. Treasury prices rose, with the benchmark 10-year note yield falling to 2.35% and the short-term two-year note yield slipping to 1.17%.

US oil rose 1.5% to $53.01 and Brent added 1.7% to settle at $56.01 a barrel.

European markets, except a marginally higher FTSE, fell 0.5%-1.7%. Auto sector was the worst performer followed by healthcare. Eurozone industrial production grew by 1.5% on the month and 3.2% on the year in November.

AT HOME

Benchmark indices gained about a third of a percent, extending the winning streak to third straight day and closing at fresh two-month high. Sensex settled at 27247, up 107 points while Nifty finished at 8407, up 27 points. BSE mid-cap index gained 0.2% but the small-cap index lost 0.2%. BSE Power index climbed 3.2%, becoming top gainer among the sectoral indices, followed by 2% higher IT index. FMCG and Healthcare indices were the top losers, down 1% and 0.7% respectively.

FIIs net sold stocks worth Rs 13 cr but net bought index futures and stock futures worth Rs 1052 cr and 927 cr respectively. DIIs were net sellers to the tune of Rs 110 cr.

Rupee appreciated 23 paise to end at 68.09/$.

India's factory output measured by the index of industrial production grew by a surprisingly robust 5.7% in November compared to 1.8% contraction in October and 3.4% fall in November 2015.

India's retail inflation measured by CPI grew 3.41% in December from November's 3.63%.

TCS reported sequential dollar revenue growth of 0.3% for the December quarter at $4387 mn. Constant currency revenue growth stood at 2%. In Rupee terms, revenue increased 1.5% to Rs 29735 cr while Net profit rose 2.9% to Rs 6778 cr. EBIT margin stood at 26%.

N Chandrasekaran, the CEO and Managing Director of Tata Consultancy Services, has been named the new Chairman of Tata Sons, roughly three months after the former Chairman Cyrus Mistry was unceremoniously ousted. He will take charge from February 21.

OUTLOOK

Today morning Asian markets, except a modestly lower Shanghai, are trading with gains of upto 0.6% and SGX Nifty is suggesting about 20 points higher start for our market.

Readers would recall that we have been bullish on Nifty since immediate hurdle of 8050 was taken out in late December. More recently when 8275 target was achieved, we have been working with next major target of 8430, where 20 as well as 34-week moving averages are placed.

The benchmark touched a high of 8417 before closing at 8407, coming in very close to the target mentioned above.

Upon a decisive crossover of 8430, next target to eye would be 8560, which is the 61.8% retracement level of the entire 8970-7894 fall.

Immediate support on the hourly chart has moved up to 8285, with the stop-loss of which trading longs can be held on to.

Infosys will report its quarterly earnings today. Dollar revenue for the quarter is seen down 1% to USD 2560 mn. Rupee revenue is expected to be flat at Rs 17313 cr while profit might fall 1% to Rs 3569 cr. More important would be the full year guidance which has been changed twice from the start of current financial year.

Fed Chair Yellen hosts a town hall meeting later today with educators in Washington, D.C., that will be eyed for any possible remarks on a Fed forecast of as many as three interest rate hikes in 2017.