NIFTY CRAWLS TO TWO-WEEK HIGH; RUPEE TUMBLES TO 11-WEEK LOW

NIFTY CRAWLS TO TWO-WEEK HIGH; RUPEE TUMBLES TO 11-WEEK LOW

WORLD MARKETS                             

US markets were shut yesterday for Thanksgiving holiday.

European markets gained 0.9%-1.4% ahead of Tuesday's ECB meeting where further stimulus measures, to revive inflation and boost growth, are expected.

Nymex oil fell 45 cents or 1.1% to $42.59 a barrel. Brent crude fell 71 cents to $45.46 a barrel.

AT HOME

After a positive start, benchmark indices kept up the positive momentum through rest of the session and finally ended higher by seven tenth of a percent to finish at the highest level since 9th November. Sensex settled at 25959, up 183 points while Nifty rose 52 points to finish at 7884. BSE mid-cap and small-cap indices gained 0.3% and 0.4% respectively. Except a 0.5% and 0.2% cut in BSE Healthcare and Capital Goods indices respectively, all the sectoral indices closed higher with Telecom and Realty indices leading the tally, up 2.7% and 1.8% respectively. 

FIIs net sold stocks, index futures and stock futures worth Rs 398 cr, 307 cr and 745 cr respectively. DIIs were net buyers to the tune of Rs 949 cr.

Rupee depreciated 24 paise to end at over 11-week low of 66.56/$.

Winter session of the Parliament began yesterday. Although, both the houses will get down to business only on Monday as Thursday and Friday have been dedicated to discuss the constitution on the country’s first ever ‘Constitution Day’ on November 26, the Rajya Sabha was adjourned after an obituary reference by chairman M. Hamid Ansari.

Dr Reddy plunged 8.3% after the US Food and Drug Administration (USFDA) released details of the warning letter issued to the company. In a strongly worded letter, the regulator said that several violations are recurrent or represent long-standing failures and it is apparent co has not implement a robust quality system at the sites.

Tata Motors climbed 5.5% after the company owned Jaguar Land Rover (JLR) said that it will double the size of its Engine Manufacturing Centre (EMC) as part of a £450 million expansion programme.

OUTLOOK

Today morning Asian markets are trading flat to modestly lower and SGX Nifty is suggesting a flattish start for our market.

For past couple of sessions, we have been advising holding on to trading longs with the stop loss of 7800.

That continues to be the view. On the way up, 7907, the top made last week, is the immediate hurdle, upon crossover of which 8035, where the 34-DMA is placed, would be the next target to eye.