OIL TUMBLES FURTHER; TRAIL STOP LOSS TO 8490

OIL TUMBLES FURTHER; TRAIL STOP LOSS TO 8490

WORLD MARKETS                             

US indices ended mixed on Friday with Dow closing absolutely flat, S & P 500 losing 0.2% and Nasdaq gaining 0.1% as retailers gained while energy stocks plunged on the back of decline in oil.

The S&P 500 Energy Sector plunged more than 6%, the biggest since August 8, 2011.   Cheveron and Exxon Mobil tumbled 5% and 3% respectively while Wal-Mart climbed 3%.

Nymex crude, after plunging more than 6% on Thursday fell another 2.5% to $67.32. Brent oil fell 3.3% to $70.15.

European markets ended mixed with modest changes.  Royal Dutch and BP lost 2.5% and 1.5% respectively, as the price of Brent crude oil hovered near a four-year low. Data on Friday showed that euro zone inflation for November stood at 0.3%, down from 0.4% in October. This boosted expectations that the ECB could try to bolster the region's economy with further stimulus measures. Meanwhile, Italian unemployment numbers showed at uptick to a record high of 13.2 percent in October.

For the week, Dow and S & P 500 ended modestly higher, while Nasdaq gained 1.7%, extending the winning streak to sixth straight week. In Europe, FTSE closed down around 0.3%, the CAC climbed 0.9%, while the DAX posted strong gains, ending up over 2.4%.

AT HOME

On Friday, after a big gap up opening, benchmark indices added some more gains through the session to end higher by about a percent, marking fresh record high.  Sensex soared 255 points to settle at 28694 while Nifty finished at 8588, up 94 points. BSE mid-cap and small-cap indices gained 1% and 0.3% respectively. Except a 0.2% and 0.05% cut in BSE Teck and IT indices respectively, all other sectoral indices ended higher, with Bankex and Realty indices leading the tally, climbing 2.9% and 1.6% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 936 cr, 1934 cr and 109 cr respectively. DIIs were net sellers to the tune of Rs 439 cr.

Rupee depreciated 15 paise to end at 62.025/$.

For the week, Sensex and Nifty gained 1.3% each, extending the winning streak to sixth straight week.

India's second quarter GDP grew by 5.3%, down from 5.7% in the first quarter but better than the estimated 5% mark.

The government’s fiscal deficit for the first seven months of this financial year totalled Rs 4.76 lakh crore, a staggering 89.6% cent of the target of Rs 5.31 lakh crore for the entire financial year.

In a surprise move on Friday, government scrapped 80:20 schemes for gold imports, which mandated export of 20% of all gold imported into the country.

Oil marketing companies yesterday cut petrol and diesel prices by 91 paise and 84 paise respectively.

OUTLOOK

China's November official manufacturing PMI has come in at a six-month low of 50.3, missing a forecast for a 50.6 figure and down from the 50.8 reading in October. The HSBC version has come in at 50, touching a six-month low, down from 50.4 in October.

Oil is down another 2% today with Brent trading at $68.3/barrel and Nymex around $64.70.

Nikkei and Shanghai are trading higher while other Asian markets are trading lower. SGX Nifty is suggesting about 25 points lower opening for our market.

After Nifty achieved 8520 target, we had been working with the next target of 8640. Nifty on Friday touched a high of 8617, coming in very close to this target and finally settled at 8588.

8640 continues to be immediate target above which 8730 would be the next target to eye. Immediate support on the hourly chart has moved up to 8490, with the stop loss of which trading longs can be held on to.