NIFTY ACHIEVES 8180 TARGET; TRAIL STOP-LOSS TO 8060
US indices gained 0.1%-0.2% yesterday supported by gains in healthcare and real estate stocks while energy stocks fell tracking steep decline in oil ahead of OPEC meeting.
WTI and Brent crude tumbled 3.9% each to $45.38 and $46.38 a barrel respectively amid fresh uncertainties over an OPEC deal to reduce production levels
The second read on US third-quarter GDP came in at an annualized rate of 3.2%, above a previous reading of 2.9%. S&P Core Logic Case-Shiller index showed U.S. home prices gained 5.5% in September. The Consumer confidence index for November came in at 107.1, well above expectations.
Dollar index slipped about 0.3%. Treasuries gained with the two-year note yield trading at 1.099% and the benchmark 10-year yield around 2.302%. Gold fell $3 to $1189 per ounce.
European markets, except a 0.4% lower FTSE, gained 0.4%-2.1% with Italy on the top. Banking stocks gained following news that the European Central Bank stands ready to increase its purchase of Italian government bonds to control any market turbulence following Sunday's referendum. Basic resources stocks were the worst performers with a slide in metal prices.
After rising about nine tenth of a percent, benchmark indices gave away large part of the gains in the late noon tumble to end just modestly higher. Sensex added 44 points to settle at 26394 while Nifty finished at 8142, up 15 points. BSE mid-cap and small-cap indices gained half a percent each. BSE Auto and Telecom indices climbed 2.2% and 2% respectively, becoming top gainers among the sectoral indices while IT and FMCG indices were the top losers, down half a percent each.
FIIs net sold stocks worth Rs 715 cr but net bought index futures and stock futures worth Rs 615 cr and 833 cr respectively. DIIs were net buyers to the tune of Rs 534 cr.
Rupee appreciated 11 paise to end at 68.65/$.
The Lok Sabha yesterday passed the Taxation Laws (Second Amendment) Bill, which amends the Income-tax Act, 1961, and the Finance Act, 2016.
Rating agency Fitch lowered India's GDP growth forecast for this fiscal to 6.9% from 7.4%, saying there will be "temporary disruptions" to economic activity post demonetisation.
Today morning, except a modestly lower Shanghai, other Asian markets are trading with gains of upto 0.9% and SGX Nifty is suggesting about 15 points higher start for our market.
In yesterday's report we had reiterated the view that Nifty continues to be in the buy mode on the hourly chart and that 8180, the 38.2% retracement level of the recent 8600-7916 fall, is the first upside target to eye above which 8260 and 8340, the 50% and 61.8% retracement levels of the aforementioned upmove, would be the subsequent levels to watch.
The benchmark touched a high of 8197 before closing at 8142, achieving the first target mentioned above.
8197, the top made yesterday, is the immediate hurdle above which 8260, as mentioned above, would be the next target to eye.
Immediate support on the hourly chart has moved up to 8060, with the stop-loss of which trading longs can be held on to.
India's Q2 FY17 GDP figure will be released today and is expected to show a growth of 7.5%.
Ministers from the 14-nation cartel, OPEC, are slated to meet in Vienna today to announce a decision on output curbs proposed in September. In September, OPEC had outlined a deal to cut output by approximately 1 million barrels per day and failure to reach a deal for production cuts could see oil prices decline further.