NIFTY EXTENDS CONSOLIDATION; 8373-8115 CONTINUES TO BE IMMEDIATE RANGE

NIFTY EXTENDS CONSOLIDATION; 8373-8115 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS                             

US indices ended with cuts of 0.3%-0.6%, pressured by weakness in Asian and European markets and a sharp decline in the utilities sector.

Concerns about Greece's failure to elect a new president on Monday continued to weigh on global markets yesterday, with Asian and European stocks closing down 1%-1.5%.

The December reading of the Conference Board's consumer confidence index came in slightly lower-than-expected at 92.6. Earlier, the Case-Shiller house price index for October showed that U.S. single-family home prices' rate of increase continued to decelerate in October since the stronger-than-expected rise seen in the previous month.

Nymex crude gained 51 cents to settle at $54.12 a barrel, rebounding from a five-and-a-half year low. Brent closed up 12 cents at $58. Gold gained 1.6% to $1200 an ounce.

European markets lost between 0.6%-1.6% as lower oil prices and political uncertainty in Greece weighed on sentiment. Spanish retail sales for November rose 1.9% year-on-year and the country's consumer price index fell more than expected with a year-on-year fall of 1.1% in December. In the U.K., the Nationwide House Price index showed that annual home price growth slowed again in November for a fourth straight month.

AT HOME

After trading with a negative bias for better part of the day, benchmark indices bounced back in last hour of trade to end marginally higher. Sensex gained 8 points to settle at 27404 while Nifty finished at 8248, up 2 points. BSE mid-cap and small-cap indices gained 0.5% and 0.2% respectively. BSE Consumer Durable and Power indices gained the most among the sectoral indices, rising 1.4% and 1.1% respectively while Oil & Gas and Metal indices lost 1.2% and 1.1% respectively.

FIIs net bought stocks and index futures worth Rs 278 cr and 473 cr respectively but net sold stock futures worth Rs 33 cr. DIIs were net buyers to the tune of Rs 161 cr.

Rupee appreciated 28 paise to end at 63.38/$.

News reports citing a senior financial ministry official said that the government has decided to roll back the 4-6% excise duty cuts on automobiles announced last February. Consumer durable items like fridges and TV sets would also become costlier as the 2% excise duty here too will be rolled back.

OUTLOOK

China's HSBC final PMI for December has come in at 49.6, which is up slightly from preliminary reading of 49.5, but down from 50 in November.

Asian markets are trading with modest gains and SGX Nifty is suggesting about 10 points higher opening for our market.

After a steep 8627-7961 fall and an equally steep 7961-8365 rebound, Nifty has been in a consolidation mode for last four sessions. As we have been mentioning 8373, the 61.8% retracement level of the entire 8627-7961 fall, is the important hurlde to eye, a crossover of which would also confirm a higher-top higher-bottom formation on the daily chart and would pave the way for the retest of the 8627 top.

On the way down, 8150-8115 continues to be the support area, where 8150 is the bottom made last week while 8115 is the 61.8% retracement level of the recent 7961-8365 pullback. A breach of this support zone can take the benchmark back to the 7961 bottom.

OIL PLUNGES TO LOWEST LEVEL SINCE MAY 2009; GOVERNMENT ON ORDINANCE SPREE

OIL PLUNGES TO LOWEST LEVEL SINCE MAY 2009; GOVERNMENT ON ORDINANCE SPREE

WORLD MARKETS

US indices ended mixed with modest changes amid fresh lows on oil prices and earlier pressure on European stocks from Greece's failure to elect a president. Dow lost 0.1%, Nasdaq closed absolutely flat while S & P 500 rose 0.1%.

Nymex oil tumbled 2% to end at $53.61, the lowest since May 1, 2009. Brent gave away 2.6% to $58. Gold fell 1.1% to $1182 an ounce.

European markets, after falling sharply in the first half on the back of Greece's failure to elect a president, rebounded later to end mixed with FTSE, DAX and CAC closing in the green while Italy and Spain ended lower. Greece itself ended 4% lower, recovering from an initial 11% dip. The country will now go for general elections early next year, potentially jeopardizing Greece's hard-won economic recovery.

                                                             

AT HOME

After a gap up opening, benchmark indices traded in a narrow range through the session and finally ended higher by six tenth of a percent. Sensex gained 154 points to settle at 27396 while Nifty finished at 8246, up 46 points. BSE mid-cap and small-cap indices gained 0.9% and 0.5% respectively. Except a 0.2% cut in Bankex, all other sectoral indices ended higher with Metal and Auto indices leading the tally, putting on 2.4% and 1.5% respectively.

FIIs net sold stocks and stock futures worth Rs 204 cr and 15 cr respectively but net bought index futures worth Rs 548 cr. DIIs were net buyers to the tune of Rs 360 cr.

Rupee depreciated 11 paise to end at 63.67/$, marking a 13 month low.

Government yesterday recommended promulgation of an ordinance making significant changes in the Land Acquisition Act including removal of consent clause for acquiring land for five areas of industrial corridors, PPP projects, rural infrastructure, affordable housing and defence.

The Cabinet also approved an ordinance to amend almost two decades old arbitration and conciliation law, which would make settlement of contractual disputes easier.

OUTLOOK

Today morning, except half a percent higher Shanghai, other Asian markets are trading with modest cuts but SGX Nifty is suggesting about 20 points higher opening for our market.

As we have been mentioning, 8373, the 61.8% retracement level of the entire 8627-7961 fall, continues to be an important hurlde to eye, a crossover of which would also confirm a higher-top higher-bottom formation on the daily chart and would pave the way for the retest of the 8627 top.

On the way down 8150-8115 is the support area where 8150 is the bottom made last week while 8115 is the 61.8% retracement level of the recent 7961-8365 pullback.

8115-8373 IS THE IMMEDIATE RANGE

8115-8373 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

US indices gained between 0.1%-0.7% on Friday with the Dow and S&P 500 closing at records and posting a second week of gains.

Nymex crude settled down 2% or $1.11 at $54.73 a barrel. Wednesday's DOE report showed a 7.3 million-barrel rise in crude inventories to their highest December level on record. Brent oil fell 79 cents to settle at $59.45.

Most of the European markets were shut on Friday.

For the week, Dow gained 1.4% and S & P 500 and Nasdaq rose 0.9% each.

AT HOME

After a gap up opening, benchmark indices soon tumbled into red, but recovered through rest of the session to end with modest gains. Sensex settled at 27242, up 33 points while Nifty finished at 8201, up 27 points. BSE mid-cap and small-cap indices gained 0.4% and 0.02% respectively. BSE Realty and IT indices gained the most among the sectoral indices, rising 0.9% and 0.8% respectively. FMCG and Consumer Durable indices lost 0.8% and 0.5% respectively.

FIIs net bought stocks worth Rs 40 cr but net sold index futures and stock futures worth Rs 21 cr and 55 cr respectively. DIIs were net buyers to the tune of Rs 417 cr.

Rupee depreciated 4 paise to end at 63.5575/$.

President Pranab Mukherjee signed two key ordinances allowing hike in the FDI cap in the insurance sector and facilitating e-auction of coal blocks.

For the week, Sensex and Nifty lost 0.5% and 0.3% respectively.

OUTLOOK

Today morning Shanghai and Hang Seng are up nearly 2%, other Asian markets are trading with modest gains and SGX Nifty is suggesting about 25 points higher opening for our market.

In Friday's report we had mentioned that 8155, the low made on Friday, is now the immediate support, below which Nifty can slide to 8050-7960 region. The benchmark, after touching a low of 8148 in the initial trade, rebounded to end at 8201.

This shows that bulls are trying hard to hold on to 8150 level. Also you have 61.8% retracement level of the recent 7961-8365 pullback is placed at 8115. Therefore it is difficult to take a fresh bearish view until these levels are taken out.

On the way up, 8250 is the immediate support on the hourly chart above which 8373, the 61.8% retracement level of the entire 8627-7961 fall, would be the major hurdle to eye. A crossover of 8373 would also confirm a higher-top higher-bottom formation on the daily chart, which will turn the near term view decisively bullish.

8155-8373 IS THE IMMEDIATE RANGE

8155-8373 IS THE IMMEDIATE RANGE

WORLD MARKETS

US and European markets were shut yesterday for Christmas.

On Wednesday's shortened session, US indices ended little changed, with S & P 500 ending absolutely flat, Dow gaining 6 points while Nasdaq was up 0.2%.

The Labor Department reported jobless claims fell by 9,000 to 280,000 last week, with the four-week moving average dropping to 290,250 last week from 298,750. Separately, the Mortgage Bankers Association reported more Americans applied for mortgages last week, with refinance activity also rising.

Nymex crude lost $1.28 on Wednesday to settle at $55.84 a barrel and Brent fell $1.45 to $60.24 a barrel.

AT HOME

After a flattish start, benchmark indices saw a sustained downward move through the session, with the selling accelerating in last half an hour, and finally ended lower by more than a percent. Sensex slumped 298 points points to settle at 27209 while Nifty finished at 8174, down 93 points. BSE mid-cap and small-cap indices however outperformed, gaining 0.2% and 0.02% respectively. Except a 1.1% rise in BSE Realty index, all other sectoral indices ended in red with IT and Oil & Gas indices leading the tally, giving away 1.4% each.  

UltraTech Cement surged after the company signed a memorandum of understanding to buy two cement plants of Jaiprakash Associates, a deal which will help consolidate its position as India's biggest cement-maker.

FIIs net sold stocks, index futures and stock futures worth Rs 2808 cr, 1303 cr and 1646 cr respectively. DIIs were net buyers to the tune of Rs 509 cr.

Rupee fell 23 paise to end at 63.51/$.

The Cabinet, as expected, approved ordinance on Insurance Bill and Coal. With Coal Mines Bill yet to be cleared by Parliament, the government approved re-promulgation of an Ordinance to facilitate e-auction of coal blocks for private companies for captive use and allot mines directly to state and central PSUs.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 20 points higher opening for our market.

In Wednesday's report we had mentioned that 8200-8170, where a gap on hourly chart is placed, is the immediate support area, a breach of which would generate a sell on the hourly chart and would pave the way for the further downside.

The benchmark, after getting resisted near our indicated 8373 level on Tuesday, plunged 93 points on Wednesday to end at 8174.

8155, the low made on Friday, is now the immediate support, below which Nifty can slide to 8050-7960 region.

Traders can initiate fresh shorts if Nifty breaks 8155. Fresh longs should be initiated only above 8373.

8155-8373 IS THE IMMEDIATE RANGE

8155-8373 IS THE IMMEDIATE RANGE

WORLD MARKETS

US and European markets were shut yesterday for Christmas.

On Wednesday's shortened session, US indices ended little changed, with S & P 500 ending absolutely flat, Dow gaining 6 points while Nasdaq was up 0.2%.

The Labor Department reported jobless claims fell by 9,000 to 280,000 last week, with the four-week moving average dropping to 290,250 last week from 298,750. Separately, the Mortgage Bankers Association reported more Americans applied for mortgages last week, with refinance activity also rising.

Nymex crude lost $1.28 on Wednesday to settle at $55.84 a barrel and Brent fell $1.45 to $60.24 a barrel.

AT HOME

After a flattish start, benchmark indices saw a sustained downward move through the session, with the selling accelerating in last half an hour, and finally ended lower by more than a percent. Sensex slumped 298 points points to settle at 27209 while Nifty finished at 8174, down 93 points. BSE mid-cap and small-cap indices however outperformed, gaining 0.2% and 0.02% respectively. Except a 1.1% rise in BSE Realty index, all other sectoral indices ended in red with IT and Oil & Gas indices leading the tally, giving away 1.4% each.  

UltraTech Cement surged after the company signed a memorandum of understanding to buy two cement plants of Jaiprakash Associates, a deal which will help consolidate its position as India's biggest cement-maker.

FIIs net sold stocks, index futures and stock futures worth Rs 2808 cr, 1303 cr and 1646 cr respectively. DIIs were net buyers to the tune of Rs 509 cr.

Rupee fell 23 paise to end at 63.51/$.

The Cabinet, as expected, approved ordinance on Insurance Bill and Coal. With Coal Mines Bill yet to be cleared by Parliament, the government approved re-promulgation of an Ordinance to facilitate e-auction of coal blocks for private companies for captive use and allot mines directly to state and central PSUs.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 20 points higher opening for our market.

In Wednesday's report we had mentioned that 8200-8170, where a gap on hourly chart is placed, is the immediate support area, a breach of which would generate a sell on the hourly chart and would pave the way for the further downside.

The benchmark, after getting resisted near our indicated 8373 level on Tuesday, plunged 93 points on Wednesday to end at 8174.

8155, the low made on Friday, is now the immediate support, below which Nifty can slide to 8050-7960 region.

Traders can initiate fresh shorts if Nifty breaks 8155. Fresh longs should be initiated only above 8373.

NIFTY RETREATS FROM ANTICIPATED RESISTANCE; 8200-8170 IS THE SUPPORT AREA

NIFTY RETREATS FROM ANTICIPATED RESISTANCE; 8200-8170 IS THE SUPPORT AREA

WORLD MARKETS

US indices ended mixed with the Dow and S & P 500 gaining 0.4% and 0.2% respectively, closing at record high, while Nasdaq lost 0.3% as biotech shares fell. Dow closed above 18000 for the first time.

Markets cheered data showing the U.S. economy expanded in the third quarter by 5%, the most in 11 years. Other data had orders for durable goods unexpectedly dropping in November, consumer sentiment coming at 93.6 in December versus a 93.5 estimate and the sale of new single-family homes falling for a second month in November.

Dollar index hit 90 for the first time in nine years. Nymex oil rose $1.86 or 3.4% to $57.12 a barrel; Brent crude rose $1.58 to $61.69 a barrel.

European markets gained between 0.3%-1.5%. French stocks outperformed after France's final third-quarter figure for GDP came in unchanged at 0.4% y-o-y. Spanish index gained a percent after the Bank of Spain raised its economic growth forecast for the country in 2014.

AT HOME

After rising nearly half a percent in the initial trade, benchmark indices plunged more than a percent from the top of the day to end lower by seven tenth of a percent, breaking three-day winning streak. Sensex lost 195 points to settle at 27506 while Nifty finished at 8267, down 57 points. BSE mid-cap and small-cap indices lost 0.3% and 0.6% respectively. Except a 0.1% rise in BSE FMCG index, all other sectoral indices ended in red with Metal and Capital Goods indices leading the tally, giving away 1.9% and 1.5% respectively. 

FIIs net sold stocks and stock futures worth Rs 445 cr and 136 cr respectively but net bought index futures worth Rs 1418 cr. DIIs were net buyers to the tune of Rs 516 cr.

Rupee depreciated 4 paise to end at 63.28/$.

The Winter session of Parliament came to a close yesterday. after passing a number of legislations but some key reform bills, including those on insurance and coal block allocations, remained pending.

The results for Jammu & Kashmir and Jharkhand assembly polls came out yesterday.  PDP got 28 seats in Jammu & Kashmir with the BJP coming second with its highest ever 25 seats in the states, but both falling short of simple majority in the 87 seat assembly.

Jharkhand, a state that was formed 14 years ago, got its first stable government with the BJP led alliance winning 42 seats, one more than the required majority of 41.

OUTLOOK

Today morning Nikkei is up more than a percent on the back of weakness in Yen. Shanghai is down more than a percent on the other hand. Other Asian markets are trading with gains of upto half a percent and SGX Nifty is suggesting a flattish start for our market.

Ever since Nifty crossed the 38.2% retracement level of the 8627-7961 placed at 8216, we had given upside targets of 8294 and 8373 and had advised booking profit in long positions as the 8373 approaches as that is the 61.8% retracement level of the 8627-7961 fall and roughly coincides with the 34 DMA resistance.

The benchmark, after touching a high of 8365, plunged to 8267, nearly achieving the upside target and also vindicated our profit booking stance.

8373 continues to be important resistance to cross, only above which we would say that the recent pullback has the potential to turn the near term trend positive.

8200-8170 is the immediate support area on the hourly chart, a breach of which can take Nifty back to the 7961 bottom.

Indian markets will remain shut tomorrow on account of Christmas.

NIFTY ON TRACK TO ACHIEVE 8373 TARGET

NIFTY ON TRACK TO ACHIEVE 8373 TARGET

WORLD MARKETS                             

US indices gained between 0.3%-0.9% with the Dow and S & P 500 closing at record high and rising for a fourth session.

Existing home sales fell 6.1% to 4.93 million in November.

Nymex oil plunged $1.87 or 3.3% to $55.26 a barrel after Saudi Arabia's powerful oil minister said OPEC would not cut production at any price; Brent fell 2% to $60. Gold fell 1.4% to $1180 an ounce.

European markets ended with gains of upto 0.8%, with sentiment boosted by a rebound in the Russian ruble. However, earlier gains in the oil price reversed, pressuring energy stocks.

Ruble firmed to a 10-day high of 55.33 against the dollar as exporters sold foreign currency revenues.

An official flash estimate showed euro zone consumer confidence edge 0.6% higher for December.

AT HOME

Resuming the upmove to the third straight day, benchmark indices soared a percent and fifth yesterday to end at the highest level since 10th December. Sensex surged 330 points to settle at 27702 while Nifty finished at 8324, up 99 points. BSE mid-cap and small-cap indices gained 0.9% and 0.4% respectively. All the BSE sectoral indices ended in green with Power, Bankex and FMCG indices leading the tally, rising 1.5% each.

FIIs net sold stocks and stock futures worth Rs 335 cr and 63 cr respectively but net bought index futures worth Rs 106 cr. DIIs were net buyers to the tune of Rs 389 cr.

Rupee appreciated 5 paise to end at 63.24/$.

OUTLOOK

Today morning, Shanghai is down more than 2%, other Asian markets are modestly higher and SGX Nifty is suggesting about 20 points higher opening for our market.

In yesterday's report we had mentioned that Nifty on Friday had crossed the 38.2% retracement level of the recent 8627-7961 fall placed at 8216 and had also generated a buy on the hourly chart which paves the way for the further upside to 50% and 61.8% retracement levels placed at 8294 and 8373 respectively.

The benchmark surged 99 points yesterday to end at 8324, achieving the first target mentioned above and moving towards the second.

8373 continues to be next target to eye. Also you have 34 DMA placed at 8380 which would make 8373-8380 a resistance are. Therefore traders are advised to book profit in long positions as these levels are reached.

Immediate support on the hourly chart has moved up to 8200 with the stop loss of which trading longs should be held on to.

Winter session of the Parliament is coming to an end today. Major legislations like the insurance and coal bills have been blocked by the Opposition in Rajya Sabha and there is high probability that the government will adopt the ordinance route to bails these bills out.

Counting of votes for assembly elections in Jammu & Kashmir and Jharkhand will be done today.

NIFTY CROSSES FIRST HURDLE; HEADED FOR 8294, 8373

NIFTY CROSSES FIRST HURDLE; HEADED FOR 8294, 8373

WORLD MARKETS                             

US indices gained between 0.2%-0.5% on Friday, extending the winning streak to third day and S & P 500 tallying its second best week in nearly two years as energy stocks continued to rebound.

Nymex oil climbed $2.41 or 4.4% to $56.52 a barrel. Brent crude too gained over 4% to $61.

European markets, except a 1.2 rise in FTSE, ended with modest cuts. Italian banks saw heavy declines after the rating agency S & P downgraded Italian Banks. Also weighing on the sentiment was a report that the European Central Bank may require certain peripheral countries such as Greece or Portugal to set aside extra money or provisions to cover potential losses from any quantitative easing it undertakes on next year. German research group GfK said its consumer climate indicator, based on a survey of around 2,000 Germans, forecast a rise to 9.0 in January, from 8.7 in December.

The euro hit a 28-month low against the dollar $1.2240 on diverging central bank policies.

For the week, S & P 500 climbed 3.4%, Nasdaq gained 2.4% and Dow rose 3%. European markets gained between 2%-4%.

AT HOME

After a gap up opening, benchmark indices traded in a range through the session and finally ended higher by about eight tenth of a percent, extending the winning streak to second day. Sensex gained 245 points to settle at 27372 while Nifty finished at 8225, up 66 points. BSE mid-cap and small-cap indices gained 0.4% and 0.6% respectively. BSE It and Metal indices gained the most among the sectoral indices, rising 2% and 1.8% respectively. FMCG and Realty indices lost 0.9% and 0.8% respectively.

FIIs net sold stocks and index futures worth Rs 669 cr and 80 cr respectively but net bought stock futures worth Rs 355 cr. DIIs were net buyers to the tune of Rs 623 cr.

Rupee depreciated 19 paise to end at 63.295/$.

For the week, Sensex and Nifty were almost flat, with the former gaining 20 points and the later just 1 point.

In a major development, government on Friday tabled the long awaited goods-and-services tax or GST in the Parliament. GST will eliminate a slew of levies currently in place to create a single internal market and is considered to be the biggest tax reform since independence. The bill will be taken up for discussion in the budget session.

Finance Ministry’s Mid-Year economic review, tabled in Parliament on Friday, pegged India's GDP growth in current fiscal at 5.5%.  Referring to fiscal challenges, the review said “the tax base was weaker than expected thanks to unanticipated moderation in inflation” and the revenue projections were “over-optimistic”.

OUTLOOK

Today morning Asian markets are trading with gains of upto a percent and SGX Nifty is suggesting about 25 points higher opening for our market.

Nifty on Friday surged all the way to 8263 before closing at 8225, gaining 66 points compared to previous close. More importantly the benchmark on Friday crossed the 38.2% retracement level of the recent 8627-7961 fall placed at 8216 and also generated a buy signal on the hourly chart. This paves the way for the further upside to 50% and 61.8% retracement levels of 8627-7961 fall, placed at 8294 and 8373 respectively.

On the way down, 8148, the 38.2% retracement level of the 7961-8263 pullback, would be the first support, with the stop loss of which trading longs can be held on to. 

WORLD EQUITIES EXTEND FED FUELED RALLY; NIFTY APPROACHING 8230 HURDLE

WORLD EQUITIES EXTEND FED FUELED RALLY; NIFTY APPROACHING 8230 HURDLE

WORLD MARKETS

US indices soared between 2.2%-2.4% yesterday, with the Dow registering best day in three-years, as investors applauded the Federal Reserve's pledge that it would be patient in increasing interest rates. Positive data showing jobless claims fell by 6,000 to 289,000 last week - the lowest since early November - also encouraged sentiment.

Another data had Conference Board's index of leading indicators advancing in November for a third consecutive month, signaling the U.S. economy is picking up steam heading into the new year.

Meanwhile, global crude prices fell again yesterday with Brent falling $1.91 to $59.27. Nymex crude settled down 4.2% or $2.36 at $54.11.

European markets climbed between 2%-3.4%. The German Ifo business climate survey managed to beat market predictions with a figure of 105.5 against a consensus 105.4.

AT HOME

It turned out to be the best day for the bulls in nearly one and a half months as benchmark indices soared 1.6%, breaking the five-day losing streak. Sensex surged 416 points to settle at 27127 while Nifty finished at 8159, up 130 points. BSE mid-cap and small-cap indices surged 2.7% and 3.3% respectively. All the BSE sectoral indices ended in green with Consumer Durable and Power indices leading the tally, climbing 5.3% and 3.3% respectively.

FIIs net sold stocks worth Rs 875 cr but net bought index futures and stock futures worth Rs 36 cr and 311 cr respectively. DIIs were net buyers to the tune of Rs 648 cr.

Rupee surged 51 paise to end at 63.11/$.

OUTLOOK

Today morning, barring a flattish Shanghai, other Asian markets are trading with gains ranging from 1%-2% and SGX Nifty is suggesting about 50 points higher opening for our market.

In yesterday's report we had mentioned that while Nifty had rebounded from the 7950 support, it needs to cross 8230 hurdle to generate a buy on the hourly chart and put bulls in the dominating position.

After today's gap up opening, Nifty would be very close to this level. Looking at the imminent resistance and steep rebound over past two sessions, traders would do well to lighten commitments in long positions as the 8230 hurdle approaches and take a fresh view after the benchmark sustains above it. A crossover of this hurdle would pave the way for the further upside till about 8370, which is the 61.8% retracement level of the recent 8627-7961 fall.

US EQUITIES GET FED, OIL BOOST; NIFTY REBOUNDS FROM 7950 SUPPORT

US EQUITIES GET FED, OIL BOOST; NIFTY REBOUNDS FROM 7950 SUPPORT

WORLD MARKETS

US indices surged between 1.7%-2.1% with the Dow marking its best session of the year, as energy sector rallied on rebound in oil and the Federal Reserve's pledge to be patient in raising interest rates.

Federal Reserve retained the phrase "considerable time" in its policy statement, and also introduced another word, "patient," as the central bank readies to raise interest rates next year. Addressing a televised news conference, Fed Chair Janet Yellen said the new language was not a change in policy, and that a rate increase was unlikely for "at least the next couple of meetings."

A rebound in oil prices, after U.S. data showed falling crude inventories, also boosted the sentiment. Nymex oil rose 54 cents to $56.47 a barrel. Brent rose $1.2 to $61.2.

Russia yesterday again attempted to halt a rout in the ruble, which climbed after the Finance Ministry said it had started selling its foreign currency stock.

European markets ended mixed with FTSE and CAC rising while DAX, Italy and IBEX ended lower.

AT HOME

After falling nearly a percent and third in the first hour, benchmark indices recovered through the session to finally end lower by 0.3%-0.5%, extending the losing streak to fifth straight session. Sensex lost 71 points to settle at 26710 while Nifty finished at 8030, down 38 points. BSE mid-cap and small-cap indices lost 0.6% and 1.1% respectively. BSE Healthcare and Realty indices led the losers among the sectoral indices, giving away 2% and 1.6% respectively while Metal and Oil & Gas indices gained 1.1% and 0.7% respectively.

FIIs net sold stocks and index futures worth Rs 1636 cr and 494 cr respectively but net bought stock futures worth Rs 4 cr. DIIs were net buyers to the tune of Rs 1424 cr.

Rupee depreciated 8 paise to end at 63.61/$.

The Lok Sabha yesterday passed the Companies (Amendment) Bill, 2014, after Corporate Affairs Minister Arun Jaitley told the house that some of the original provisions were only posing hurdles to doing business in the country.

In a big step forward for the long-delayed goods and services tax (GST), the Union Cabinet gave its assent yesterday to the constitutional amendment bill that needs to be approved before the levy can become reality, with the Centre having made significant concession to get states on board. The bill is likely to be introduced in Parliament on Thursday and the government hopes to roll out GST on April 1, 2016, replacing a range of indirect taxes levied by the Centre, states and local bodies with one unifying levy.

OUTLOOK

Today morning, Nikkei is up about 2.5%, other Asian markets are trading with gains of upto a percent and SGX Nifty is suggesting about 75 points higher opening for our market.

In yesterday's report we had mentioned that while Nifty has achieved the downside target of 8070, the view will continue to be bearish until we see a resumption of the higher-top higher-bottom formation. We had also mentioned 7950 as the next support where a trendline adjoining recent bottoms on the weekly chart was placed.

Nifty, in the first hour of trade, touched a low of 7961, nearly achieving the target mentioned above, from where it rebounded smartly to end at 8030.

7950 continues to be important immediate support, a breach of which would open up the possibility of the retest of the 7724 bottom made in October.

On the way up, immediate resistance on the hourly chart has moved lower to 8230, a crossover of which is required to generate a buy on the hourly chart and put bulls in the dominating position. Till then every rally should be taken with a pinch of a salt.

NIFTY ACHIEVES MAJOR DOWNSIDE TARGET; FED IN FOCUS

NIFTY ACHIEVES MAJOR DOWNSIDE TARGET; FED IN FOCUS

WORLD MARKETS

After a lower start, US indices broke into green, only to plunge as much as 2% from the top of the day to finally end with cuts between 0.6%-1.2% amidst choppy trade in oil, volatility in Ruble and ahead of the key Fed policy statement.

Despite a drastic move of raising the interest rates by 6.5% to stem the decline of ruble, the currency plunged as much as 23.2% against the dollar to touch an all-time los of 79.16 from where it rebounded all the way to 67.91.

Brent crude futures fell for a fifth straight day to end at $59.86, down $1.20 compared to previous close. Nymex crude finished a volatile session two cents higher at $55.93.

New-home construction in the U.S. topped a million on an annualized rate in November, while housing starts fell 1.6% and building permits declined 5.2% last month. Markit's preliminary reading on December manufacturing PMI stood at 53.7 vs. 55.2 estimate.

European markets surged between 2.2%-3.3%. Euro zone December flash composite PMI came in at 51.7, just above forecasts of 51.5 and November's final reading of 51.1.In Germany, the widely-watched ZEW Institute's economic sentiment index for December  shot up to 34.9 points, from 11.5 in November and above analyst expectations of 20.

AT HOME

It was mayhem in the market as benchmark indices nosedived nearly 2%, suffering the worst single-day fall in more than five months and closing at the lowest level in one and a half month. Sensex plunged 538 points to settle at 26781 while Nifty finished at 8068, down 152 points. BSE mid-cap and small-cap indices tumbled 3% and 3.4% respectively. Except a 1.7% and 1.1% rise in BSE IT and Teck indices respectively, all other sectoral indices ended in red with Metal and Realty indices leading the tally, giving away 4.2% and 3.8% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1247 cr, 557 cr and 105 cr respectively. DIIs were net buyers to the tune of Rs 535 cr.

Rupee plunged 59 paise to end at 63.53/$, a 13 month low.

OUTLOOK

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

Ever since Nifty broke the important 8300 support on the daily chart we had been working with the downside target of 8070, which is the 61.8% retracement level of the entire 7723-8627 upmove.

Nifty yesterday nosedived 152 points to settle at 8068, achieving the target mentioned above and vindicating our view.

The view however continues to be bearish and will remain so until we see a resumption of the higher-top higher-bottom formation on the daily chart. However, after falling nearly 6.5% in last nine sessions and achieving major downside target, a bounce back in Nifty cannot be ruled out.

8250 is now the immediate resistance on the hourly chart, at least a crossover of which is required to suggest that the bounce back has some steam. Until then, every pull back should be taken with a pinch of salt.

Next support would come around 7950, where a trendline adjoining recent bottoms on the weekly chart is placed.

US Fed will issue a statement at the end of its tow-day meeting. The focus would be on whether the central bank reiterates its vow to maintain rates low for a considerable period amid signs of slowing growth in rest of the world.