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Indian Indices: Asian markets were trading in the green taking cues from the overnight 300 plus point rally on the Dow Jones. The consensus now has built in the chances of a rate hike by the Fed in March, which saw yields harden and the US Dollar strengthen. Globally, the outperformance of equities continues with ETF funds seeing huge inflows.

Nifty bounced back in style to capture 8900 with ease and close near 8950. The stronger than expected GDP data and return of foreign flows will see Nifty touch 9000 today as global cues join the bull market chorus. For today, expect mid-cap gains to continue with the mid-cap index hitting all time highs. Metals, Pharma and Consumption could continue to lead the gainers while Energy and Telecoms see profit booking @ higher levels.

The BSE Sensex is currently trading at 29107.29, up by 122.80 points or 0.42% after trading in a range of 29062.07 and 29133.44. There were 24 stocks advancing against 6 stocks declining on the index.The broader indices were trading in green; the BSE Mid cap index was up by 0.42%, while Small cap index was up by 0.46%.

The CNX Nifty is currently trading at 8981.60, up by 35.80 points or 0.40% after trading in a range of 8969.80 and 8992.50. There were 39 stocks advancing against 12 stocks declining on the index.

Technical view: Nifty finds strong support @ 8920 while 9000 will be the first resistance on the upside while Bank Nifty also finds strong support around 20500 where it will face resistance around 21000.

Trading ideas :McleodRussel (Buy above Rs 176, for Target of Rs 183, SL at Rs 172.5): The stock was stuck in a narrow trading band for the past 3 weeks oscillating between Rs 173-166. Finally, Mcleod has broken out from a Flag pattern accompanied with increase in volumes. Projections indicate potential target for stock up to Rs 183 in the near term. Other momentum oscillators indicate that the current momentum is here to stay.

Derivative Snippets: Nifty Metal and Realty index shimmered as the markets restarted its upward trend after 2 days of minor correction. Nifty ATM/ITM put strikes witnessed short selling as the highest open interest put base shifted from 8500 to 8800 strike.

FIIs were net sellers in cash market segment to the tune of Rs 198 crore.

FII’s index future long/short ratio at 4.5x in contrast to 0.46x for the Retail clients.

Nifty Movers:  The top gainers on Nifty were Tata Motors up by 3.50%, Tata Motors - DVR up by 2.88%, Ultratech Cement up by 2.84%, Ambuja Cement up by 1.59% and Hindalco up by 1.53%.

On the flip side, Sun Pharma down by 1.29%, BPCL down by 1.21%, Dr. Reddy’s Lab down by 1.00%, Idea Cellular down by 0.93% and NTPC down by 0.78% were the top losers.

Top Sectoral& Stock Screening:  The top gaining sectoral indices on the BSE were Auto up by 1.24%, Industrials up by 1.18%, Metal up by 0.95%, Basic Materials up by 0.91% and Consumer Durables up by 0.81%, while Realty down by 0.71% and Healthcare down by 0.14% were the losers on BSE.

On the global front:On the global front, Asian shares were trading mostly in green, as investors were encouraged by President Donald Trump’s measured tone in his first speech to Congress, which sent Wall Street stocks sharply higher. China’s newly appointed banking regulator vowed to strengthen supervision of the lending sector, underscoring Beijing’s determination to fend off financial risks and push forward with reforms this year.

Global Signals: The Asian markets were trading mostly in green; KOSPI Index increased 12.49 points or 0.6% to 2,104.13, FTSE Bursa Malaysia KLCI increased 14.53 points or 0.86% to 1,712.22, Jakarta Composite increased 52.77 points or 0.98% to 5,415.83, Hang Seng increased 96.15 points or 0.4% to 23,872.64 and Nikkei 225 increased 191.63 points or 0.99% to 19,585.17.

On the other hand, Taiwan Weighted decreased 4.05 points or 0.04% to 9,670.73 and Shanghai Composite decreased 0.28 points or 0.01% to 3,246.65.