7900-8085 CONTINUE TO BE IMMEDIATE BOUNDARIES

7900-8085 CONTINUE TO BE IMMEDIATE BOUNDARIES

WORLD MARKETS                             

Dow and S & P 500 gained 0.3% and 0.1% respectively Nasdaq lost 0.1% digested a number of economic data, including minutes from the Federal Reserve's November meeting.

Minutes backed the consensus view that the central bank is poised to raise rates in December. Weekly jobless claims increased 18,000 to a seasonally adjusted 251,000 for the week ended Nov. 19. That said, claims have now been below 300,000, a threshold associated with a healthy labor market, for 90 straight weeks. U.S. durable goods increased 4.8% in October, well above a 1.5% consensus estimate.  IHS Markit manufacturing index for November showed a slight increase to 53.9 from 53.4 in October. New home sales for October fell 1.9%, while consumer sentiment came in at 93.8, above a 91.6 estimate.

Dollar index soared to 101.71 from previous day's 101 level, touching a fresh 13 1/2 year high. Gold fell $22 to $1189 per ounce, marking a nine-month low.

US crude rose 0.4% to $48.22 and Brent gained 0.3% to $49.27 after data from the U.S. Energy Information Administration showed crude inventories fell 1.3 million barrels in the week to Nov. 18, compared with market expectations for a build of 671,000 barrels.

European markets, except a marginally higher Italy, lost upto 0.5%. Euro zone composite purchasing managers' index (PMI) for November came in at 54.1, the highest since December 2015 and up from 53.3 in October. The U.K. government cut its growth forecast for 2017 from 2.2% to 1.4% and for 2018 from 2.1% to 1.7%.

AT HOME

Benchmark indices added four tenth of a percent yesterday, extending the winning streak to second straight day. Sensex settled at 26052, up 91 points while Nifty rose 31 points to finish at 8033. BSE mid-cap and small-cap indices climbed 1.2% and 1.5% respectively. Except a marginally lower Finance and Telecom indices, all the BSE sectoral indices closed higher, with Realty and Metal indices leading the tally, up 3.4% and 2.3% respectively.

FIIs net sold stocks and index futures worth Rs 1023 cr and 55 cr respectively but net bought stock futures worth Rs 1458 cr. DIIs were net buyers to the tune of Rs 1255 cr.

Rupee tumbled 31 paise to close at fresh nine-month low of 68.56/$.

With several states suggesting changes in the model GST and compensation laws, the GST Council meeting scheduled for November 25 has been postponed to December 2-3. The officers' committee of both the Centre and states, however, will meet on November 25 to finalise the three draft legislations -- CGST, IGST and compensation law. These will be placed in public domain for stakeholders' comments. 

SBI cut bulk deposit rates by 1.25%-1.9%.

OUTLOOK

Today morning Nikkei, after yesterday’s break, has opened higher by about a percent but other Asian markets are trading with cuts of upto 0.8% and SGX Nifty is suggesting about 40 points lower start for our market.

In yesterday's report we had reiterated the view that 7900, the 50% retracement level of the 6825-8970 upmove, continues to be immediate support to eye, upon breach of which, next meaningful support will come only at 7650, which is the 61.8% retracement level of this upmove. We had also said that the immediate resistance on the hourly chat has moved lower to 8085, a crossover of which is required for the fresh upmove.

Yesterday, the benchmark, after touching a high of 8055, retreated to end at 8033 and is set to open around 8000 today.

8085 continues to be immediate hurdle, a crossover of which is required to generate a buy on the hourly chart which in turn would pave the way for the fresh upmove.

Traders should keep a stop-loss of 8085 for short positions.

U.S. markets will be closed today for the Thanksgiving holiday and open for a half-day on Friday.