NIFTY ON TRACK TO ACHIEVE 9950-10000 TARGET; TRAIL STOP-LOSS TO 9740

NIFTY ON TRACK TO ACHIEVE 9950-10000 TARGET; TRAIL STOP-LOSS TO 9740

WORLD MARKETS                             

US indices gained 0.6%-1.1% with Dow hitting a fresh record high after digesting Yellen testimony.

Yellen said the central bank would proceed with unwinding of its balance sheet this year, but that it was paying close attention to inflation data. Her comments about how it was "premature" to determine if the U.S. economy was on track for 2 percent inflation was interpreted by market watchers as dovish. Yellen also noted rates won't have to rise as much to get to neutral, as in previous decades.

In reaction, the benchmark 10-year note yield traded at 2.32%, down from 2.35% earlier. The two-year yield fell from 1.38% to 1.34%.

European markets surged 1.1%-1.6%.

AT HOME

Sensex and Nifty gained 0.2% and 0.3% respectively to close at fresh record high. Sensex settled at 31805, up 58 points while Nifty added 30 points to finish at 9816.  BSE mid-cap and small-cap indices soared 1.1% and 0.6% respectively. Except 0.4% and 0.1% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Oil & Gas and Telecom indices leading the tally, up 1.5% and 1.1% respectively.

FIIs net bought stocks and stock futures worth Rs 361 cr and 202 cr respectively but net sold index futures worth Rs 1286 cr. DIIs were net sellers to the tune of Rs 331 cr.

Rupee appreciated 5 paise to end at 64.54/$.

India's retail inflation fell to 1.54% in June from May's 2.18%, marking the lowest level since 1999. Core inflation fell to 3.8% from 4.2%. Industrial output, measured by IIP, grew at 1.7% in May, down from downward revised 2.8% in April.

OUTLOOK

Today morning, Asian markets are trading with gains of upto 1.3% with Hang Seng on top and SGX Nifty is suggesting about 50 points higher start for our market.

At the risk of repeating, we have been working with target area of 9950-10000 after 9710 hurdle was taken out. Nifty yesterday closed at 9816 and is set to open above 9850 today.

9950-10000 continues to be upside target. Immediate support on the hourly chart has moved up to 9740, with the stop-loss of which trading longs should be held on to.

TCS will report its quarterly earnings today.