NIFTY BREAKS SIX-WEEK WINNING STREAK; 8500 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY BREAKS SIX-WEEK WINNING STREAK; 8500 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices gained about a fourth of a percent on Friday following a robust jobs report, with the Dow and S & P 500 scaling record high and posting a seventh week of gains.

U.S. employers created 321,000 jobs last month, the largest gain since January 2012. The unemployment rate remained unchanged at a six-year low of 5.8%, and hourly wages increased 0.4%. The reported number for October was revised higher to 243,000 jobs.

Another report Friday had orders for U.S. factory goods falling 0.7% in October.

The dollar index surged to 89.30, its highest level since April 2006. Nymex oil fell 1.5% to a five-year low of $65.84 a barrel and gold dropped 1.4% to $1190 an ounce.

European markets surged between 1%-3.4%. Europe's statistics agency, Eurostat, confirmed its previous estimates of 0.2 percent growth in the euro zone in the third quarter.

AT HOME

It was a weak end to the week as benchmark indices, after a flattish start, saw a sustained downward move through the session on Friday to end lower by a third of a percent. Sensex lost 105 points to settle at 28458 while Nifty finished at 8538, down 26 points. BSE mid-cap index lost 0.3% while the small-cap index gained 0.03%. BSE IT and Teck indices were the top losers among the sectoral indices, giving away 1.8% and 1.5% respectively while Realty and FMCG indices gained 1.3% and 1.1% respectively. 

FIIs net sold stocks and stock futures worth Rs 109 cr and 130 cr respectively but net bought index futures worth Rs 300 cr. DIIs were net buyers to the tune of Rs 166 cr.

Rupee appreciated 15 paise to 61.77/$.

For the week, Sensex and Nifty lost 0.8% and 0.6% respectively, breaking six-week winning streak.

OUTLOOK

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

For whole of last week we have been cautioning that after a heady runup starting mid-October, market is looking tired with Nifty forming a negative divergence on the daily chart on Friday, the 28th November. Since then we have been working with a stop loss of 8500, a sustained trading below which would generate a sell on the hourly chart and would pave the way for further correction. 8430 would be the nearest support to eye in that case, followed by 8350.