NIFTY REBOUND FROM OUR INDICATED SUPPORT

NIFTY REBOUND FROM OUR INDICATED SUPPORT

WORLD MARKETS

US indices, after starting in red, saw a sustained northward move through the session to end with gains ranging from 0.2%-0.6%, with the Dow and S & P 500 scaling record high, after encouraging domestic data alleviated concerns over continued signs of slowing growth in Europe and China.

Intel surged 4% after the technology firm reported an upbeat outlook for 2015 revenue and raised its dividend.

October existing home sales hit 5.26 mn, beating the estimated 5.16 mn mark. Philadelphia Fed's manufacturing index for November surged to 40.8, more than double the expected 18.3 and the highest since December 1993.  Leading indicators gained 0.9% in October vs expectation of 0.6% gain. Weekly jobless claims stood at 291,000, with continuing claims the lowest since 2000. The Consumer Price Index for October was unchanged. On the flip side, preliminary PMI data from Markit posted a slowdown, with a fall to 54.7 in November from October's final reading of 55.9.

Earlier data showed that Euro zone November flash composite PMI came in at 51.4, below estimates of 52.2 and October's final reading of 52.1. China's flash PMI from HSBC fell to 50.0

European markets, except a 0.1% higher DAX, ended with cuts ranging from 0.3%-1.6%, but off the day lows, to worse-than-expected data from the euro zone and disappointing corporate earnings from the mining sector.

Nymex crude gained $1 to $75.6 a barrel; Gold fell $3 to $1191 an ounce.

                                                             

AT HOME

After falling about a third of a percent in the morning trade, benchmark indices bounced back in the noon trade to end with modest gains. Sensex settled at 28068, up 35 points while Nifty finished at 8402, up 20 points. BSE mid-cap and small-cap indices lost 0.1% and 0.3% respectively. BSE IT and Teck indices gained the most among the sectoral indices, rising 1.3% and 0.8% respectively while Consumer Durable and Realty indices were the top losers, giving away 1.7% and 1.5% respectively.

FIIs net sold stocks and stock futures worth Rs 477 cr and 308 cr respectively but net bought index futures worth Rs 277 cr. DIIs were net buyers to the tune of Rs 102 cr.

Rupee appreciated 2 paise to close at 61.94/$.

Kotak Mahindra Bank announced acquisition of ING Vysya Bank in an all-stock deal. The swap ratio is 725 shares of Kotak Mahindra for every 1000 shares of ING Vysya.

In its biggest acquisition, Tech Mahindra acquired Virginia based Lightbridge Communications Corporation for an enterprise value of approx $240 mn.

OUTLOOK

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

We have been asking holding on to trading longs with a trailing stop loss ever since 7928 hurdle was crossed on 21st October and for past two sessions we have been working with a support zone of 8340-8350. Nifty, after touching a low of 8353 yesterday, rebounded smartly to end at 8402, vindicating the importance of the above mentioned support.

8340 continues to be immediate support, a breach of which would break the higher-top higher-bottom formation on the daily chart and would pave the way for the further correction till about 8150-8200. 8456, the all-time high made on Wednesday, is the immediate resistance above which 8520 would be the next target.