NIFTY ACHIEVES 10088 TARGET; 10138 NEXT

NIFTY ACHIEVES 10088 TARGET; 10138 NEXT

WORLD MARKETS                             

US indices gained about a third of a percent to close at record high following comments about tax reform.

Treasury Secretary Mnuchin said he was "hopeful" that tax reform would be accomplished by year's end, adding the administration is thinking about backdating reform to Jan. 1.

Financial stocks surged after the benchmark 10-year Treasury yield rose to 2.171%, its highest level since Sept. 1.

European markets, except a 0.2% lower FTSE, gained 0.1%-0.6%. FTSE fell and Pound firmed after U.K. August inflation rose 2.9% y-o-y, a tad higher than the 2.8% forecast. The figures will add renewed pressure to the Bank of England, which will meet Thursday to make its latest monetary policy decision.

AT HOME

Benchmark indices surged nine tenth of a percent with Sensex and Nifty closing at the highest level since 7th August and 1st August respectively. Sensex soared 276 points to settle at 32159 while Nifty finished at 10093, up 87 points. BSE mid-cap and small-cap indices climbed 1.1% and 1% respectively. All the BSE sectoral indices ended in green with Realty and Healthcare indices leading the tally, up 2.1% and 1.7% respectively.

FIIs net sold stocks and index futures worth Rs 1231 cr and 299 cr respectively but net bought stock futures worth Rs 211 cr. DIIs were net buyers to the tune of Rs 1313 cr.

Rupee depreciated 11 paise to end at 64.04/$.

India's retail inflation, measured by Consumer Price Index (CPI) grew 3.36% in August, up from 2.36% in July. Core CPI stood at 4.5%, up from 3.96%. Factory output measured in terms of index of industrial production grew 1.2% in July as against a contraction of 0.2% in June.

OUTLOOK

Today morning, Asian markets, except a half a percent higher Nikkei, are trading with modest cuts and SGX Nifty is suggesting a marginally higher start for our market.

After Nifty took out the immediate hurdle of 10000, we had said that 10088 and 10138, the tops made on 7th and 2nd August respectively, are the upside targets to eye.

The benchmark surged to touch a high of 10097 before closing at 10093, achieving the 10088 target.

10138, the highest high so far made on 1st August, continues to be next major target as well as the hurdle to eye.

The support in the form of 20-DMA and rising trendline adjoining recent bottoms on the daily chart has now moved up to 9900, with the stop-loss of which, trading longs should be held on to. Some profit booking is advisable as the 10138 approaches.