NIFTY ON TRACK TO ACHIEVE 10700 TARGET; TRAIL STOP-LOSS TO 10480

NIFTY ON TRACK TO ACHIEVE 10700 TARGET; TRAIL STOP-LOSS TO 10480

WORLD MARKETS                             

US indices soared 0.7%-0.9% on Friday, shaking off jobs data that missed expectation

The U.S. economy added 148,000 jobs in December, lower than the expected 190,000 figure. Average hourly earnings were higher by 2.5% on an annualized basis. Non-manufacturing ISM index fell to 55.9 in December from 57.4 in November. Factory orders rose 1.3% in November, exceeding expectations.

European markets gained 0.4%-1.1%. Euro zone inflation slowed to 1.4% in December from 1.5% the month before, bringing into question an end to the European Central Bank's asset purchasing program.

For the week, Dow, S&P and Nasdaq rose 2.3%, 2.6% and 3.4% respectively, marking their best start to a year since 2006.

AT HOME

Benchmark indices climbed half a percent to scale fresh record intraday as well as closing highs. Sensex added 184 points to settle at 34154 while Nifty finished at 10559, up 54 points. BSE mid-cap and small-cap indices gained 0.7% and 1% respectively. Except a 0.4% and 0.01% lower Oil & Gas and Energy indices respectively, all the BSE sectoral indices ended in green with Telecom and Consumer Durable indices leading the tally, up 2.8% and 1.2% respectively.

FIIs net bought stocks and stock futures worth Rs 581 cr and 91 cr respectively but net sold index futures worth Rs 1201 cr. DIIs were net buyers to the tune of Rs 243 cr.

Rupee appreciated 3 paise to end at 32-month high of 63.37/$.

For the week, Sensex and Nifty gained 0.3% each.

Budget session of the Parliament will begin on January 29 and Union Budget will be presented on February 1.

Data released by Central Statistical Organisation (CSO) on Friday showed India will likely grow at 6.5% in 2017-18, slower than the previous year’s 7.1% expansion. Chief Statistician TCA Anant said that implicit calculations suggest that growth during October-March at 7%. GVA growth is expected to be 6.1%, much lower than RBI's 6.7% estimate. Agriculture growth is expected to slow down to 2.1% from previous year's 4.9% and manufacturing growth is expected to slow down to 4.6% from 7.9%. Gross fixed capital formation however is expected to grow by 4.5% as against 2.4%.

OUTLOOK

Today morning, Shanghai is down 0.1% while other Asian markets are trading with modest gains. SGX Nifty is suggesting about 50 points higher start for our market.

In Friday's report we had mentioned that a sustained trading above 10510 resistance area would generate a "Buy" on the hourly chart and 10700 would be the upside target in that case.

Nifty, on Friday gained 54 points to end at 10559 and is set to open around 10600 today.

10700 continues to be immediate upside target above which 10950 would be the next major target to eye.

After today's higher start, immediate support on the hourly chart would have moved higher to 10480, with the stop-loss of which, trading longs should be held on to.