7800-7907 CONTINUES TO BE IMMEDIATE RANGE
Dow and S & P 500 ended absolutely flat while Nasdaq gained 0.3% yesterday in low volume trade after a slew of data releases Wednesday, the last full trading day of the holiday week.
October U.S. personal spending rose 0.1%, while personal income rose 0.4%. Durable goods orders topped expectations by rising 3% in October. Weekly jobless claims fell more than expected to 260,000. Weekly mortgage applications fell 3.2%, while the FHFA home price index showed a 0.8% rise in September from August. October new home sales showed a gain of 10.7%. The University of Michigan's final read on November consumer sentiment came in at 91.3, up slightly from October's final read of 90.0.
Nymex oil rose 17 cents or 0.4% to $43.04 a barrel after Baker Hughes said the weekly U.S. oil rig count dropped 9 for the week. U.S. government reported weekly crude oil inventories rose less than suggested by an earlier industry reading.
Greater expectations of stimulus sent the euro to a low of $1.0566 against the dollar, its lowest level since April. The U.S. dollar hit a high of 100.17, its highest level since March.
European markets soared 1%-2.2% after some encouraging corporate results helped lift sentiment.
It was yet another rangebound but choppy trading session after which benchmark indices ended a fifth of a percent down ahead of the expiry of the November derivative series. Sensex settled at 25776, down 44 points while Nifty lost 18 points to finish at 7832. BSE mid-cap and small-cap indices once again outperformed, rising 0.1% and 0.3% respectively. BSE Capital Goods and IT indices were the top losers among the sectoral indices, giving away 1.2% and 0.7% respectively while Realty and Energy indices were the top gainers, up 1.3% and 1.1% respectively.
FIIs net sold stocks and stock futures worth Rs 540 cr and 141 cr respectively but net bought stock futures worth Rs 381 cr. DIIs were net buyers to the tune of Rs 532 cr.
Rupee appreciated 15 paise to end at 66.33/$.
Today morning Asian markets are trading with gains of upto a percent and SGX Nifty is suggesting about 20 points higher opening for our market.
On Tuesday, we had recommended holding on to trading longs with the stop loss of 7800. The benchmark, after touching a high of 7870, slipped to end at 7832, but is agains slated to open higher today.
7800 continues to be immediate support, with the stop loss of which trading longs should be held on to. 7907, the top made on Friday, continues to be immediate hurdle, above which, 34-DMA, placed around 8043, would be the next target to eye.
Winter session of the Parliament begins today. First two days will be dedicated to discussion on Constitution and its maker B R Ambedkar on his 125th birth anniversary. GST will be the key bill on the agenda along with Land Acquisition Bill.
U.S. markets will remain closed today for Thanksgiving.