Global Market Update:-
U.S. stocks rallied for a fourth day as the European Central Bank unveiled an expanded stimulus plan and regional banks and transportation companies posted better-than-forecast earnings.
The Standard & Poor’s 500 Index (SPX) gained 0.6 percent to 2,044.16 at 1:21 p.m. in New York. The gauge is trading near its average price for the past 50 days. The Dow Jones Industrial Average climbed 98.70 points, or 0.6 percent, to 17,652.98. Trading in S&P 500 companies was 19 percent above the 30-day average for this time of the day.
KeyCorp led gains among regional banks after fourth-quarter results topped analyst estimates. Union Pacific Corp. added 4.8 percent as a strengthening U.S. economy and growing construction market boosted traffic on the rails in the fourth quarter. EBay Inc. increased 5.5 percent after entering a standstill agreement with activist investor Carl Icahn.
Indian Market Update:-
After a day of consolidation the market ended at record closing high on Thursday, gaining for the sixth consecutive session ahead of European Central Bank meeting outcome later in the day. NSE Nifty rose 31.90 points to 8761.40.
Healthcare, metals, capital goods, select technology and auto stocks supported the market. However, the fall in index heavyweights like ITC, Reliance Industries and HDFC capped the upside. Sun Pharma was the biggest gainer on the Sensex, up 3.65 percent while its rivals Cipla and Dr Reddy’s Labs gained 1-1.7 percent.
Among banking & financials, Axis Bank was up 3.3 percent. ICICI Bank and HDFC Bank closed marginally higher whereas State Bank of India declined 0.44 percent. Housing finance company HDFC fell 0.4 percent on profit taking after rising nearly 8 percent in previous two consecutive sessions.
Tata Motors surged 2.7 percent on launching Bolt petrol variant at Rs 4.65-6.35 lakh (ex-Mumbai) and diesel variant at Rs 5.75-7.32 lakh (Ex-Mumbai) today. The company said it already received 50,000 bookings so far.
The market breadth was negative as declining shares outnumbered advancing ones on the Bombay Stock Exchange by a ratio of 1580 to 1347.
Following the Strong Global cues, Market is likely to open on a positive note but might take correction towards the day end. It would be better to wait for correction before initiating fresh buys.
Strong Bullish Above
Strong Bearish Below
Derivative Pick: Sell Reliance(only below 882.70)
The stock has had a strong rally, but had a resistance level of 909-910 which it was unable to cross.It has also formed an evening star pattern near the resistance which usually takes the stock down , provided it breaks the low of 882.75 , one should be looking to short the stock.
Cash Pick: BUY Mothersumi
Duration: 5-7 days
Technical View:The stock has broken its resistance levelof 465-470 levels. It has also formed a triangle pattern giving a breakout with increase in volume from last two trading sessions. With no resistance overhead one should be looking to buy the stock from current levels
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