NIFTY REBOUNDS FROM 7900 SUPPORT

NIFTY REBOUNDS FROM 7900 SUPPORT

WORLD MARKETS                             

US indices gained 0.1%-0.4% yesterday with the Nasdaq composite setting a closing record.

Consumer confidence for December came in at 113.7, its highest since August 2001 and up from an upwardly revised 109.4 read in November. The Richmond Fed current conditions manufacturing index rose to 8 points this month from 4 points in November. The Dallas Fed manufacturing index rose to 13.8 points in December from 8.8 in November. S&P/Case-Shiller U.S. National Home Price Index rose 5.6% in October from the previous year, extending a new high from the previous month.

WTI crude rose 1.7% to $53.90 a barrel. The first output cut deal between OPEC and non-OPEC producers in 15 years is set to take effect Sunday.

Dollar index was little changed. Gold gained $5 to $1139 an ounce.

European markets ended with modest gains.

China's National Bureau of Statistics said that profits earned by large industrial firms rose 14.5 percent in November from a year earlier, a big jump from a 9.8 percent increase in October, on the back of a strong rebound in raw material prices and a low base last year.

AT HOME

After a flattish start, benchmark indices saw a sustained northward move through the session to end with hefty gains of nearly a percent and half, registering the biggest percentage gain since 8th December, 2016. Sensex soared 406 points to settle at 26213 while Nifty finished at 8033, up 125 points. BSE mid-cap and small-cap indices rose 1.7% and 1.5% respectively. All the BSE sectoral indices ended higher with FMCG and Metal indices leading the tally, up 2.6% and 2.5% respectively.

FIIs net sold stocks and index futures worth Rs 712 cr and 445 cr respectively but net bought stock futures worth Rs 815 cr. DIIs were net buyers to the tune of Rs 1502 cr.

Rupee depreciated 33 paise to end at 68.07/$.

ITC soared on reports that the company has initiated an over 14-15% price hike for some of its cigarettes.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a marginally higher start for our market.

After achieving the 7916 target and holding on to 7900 support, Nifty yesterday bounced back sharply by gaining 125 points to settle at 8033.

A crossover of 8045, the top made yesterday, would confirm a buy on the hourly chart and next target to eye in that case would be 8130, which is the 61.8% retracement level of the recent 8275-7894 fall.

Traders can go long above 8045 keeping a stop-loss of 7980, which is the immediate support on the hourly chart.