TOP TRADES-NEW YEAR SPECIAL ON CNBC BAJAR

http://gujarati.moneycontrol.com/tv/view_video.php?autono=18027

7850-7980 CONTINUES TO BE IMMEDIATE RANGE

7850-7980 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS                             

US indices lost 0.7%-0.8% yesterday on the back of decline in oil prices. Energy declined nearly 1.5% and materials lost about 1% to lead all S&P 500 sectors lower.

Nymex crude fell $1.27 or 3.4% to $36.60 a barrel after weekly crude oil inventories unexpectedly showed a build, up 2.6 million barrels. Brent oil declined 3.5% to $36.44 a barrel.

Pending home sales fell 0.9% in November from an upwardly revised October reading.

European markets fell 0.3%-1.1% with Italy and Germany leading the tally.

AT HOME

After trading in a narrow range for better part of the day, benchmark indices slipped in the late noon trade to end lower by about four tenth of a percent, breaking two-day winning streak. Sensex lost 119 points to settle at 25960 while Nifty finished at 7896, down 33 points. BSE mid-cap and small-cap indices however managed to end higher by 0.2% and 0.1% respectively. BSE IT and Teck indices lost 1.2% and 0.8% respectively, becoming top losers among the sectoral indices while Telecom and Utilities indices gained 0.5% and 0.4% respectively.

FIIs net bought stocks and index futures worth Rs 152 cr and 330 cr respectively but net sold stock futures worth Rs 251 cr. DIIs were net sellers to the tune of Rs 74 cr.

Rupee ended unchanged at 66.3875/$.

Shares of textile companies gained after the government approved an Amended Technology Upgradation Fund Scheme (A-TUFS) in place of the existing Revised Restructured TUFS for technology upgradation of the textiles industry. The move is expected to boost job creation and exports in the sector.

Container Corp, Godrej Consumer, Jet Airways and Torrent Pharma will be included in the derivative segment of NSE from tomorrow.

OUTLOOK

Today Nikkei and South Koran markets are shut, other Asian markets are trading flat to marginally higher and SGX Nifty is suggesting about 10 points higher start for our market.

Readers would recall that ever since Nifty crossed 7850 hurdle, we have been working with the upside target of 7980, which was the top made in early December.

Yesterday, after touching a high of 7945, Nifty tumbled to end at 7896.

Immediate support on the hourly chart continues to be around 7850, a breach of which would generate a sell on the hourly chart.

7980 continues to be major hurdle.

7980 CONTINUES TO BE UPSIDE TARGET; 7850 IMMEDIATE SUPPORT

7980 CONTINUES TO BE UPSIDE TARGET; 7850 IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices soared 1%-1.3% yesterday as technology sector led the gainers and commodity prices rebounded.

Nymex oil rose $1.06 or 2.9% to $37.87 a barrel while Brent gained 3.5% to $37.91 a barrel. Copper climbed more than 3% to its highest level in more than a week. Media reports suggested that nine large copper smelters in China have agreed to cut sales of spot metal by as much as 200,000 tonnes in the first quarter of 2016 to counter low prices. Natural gas extended Monday's surge to settle up 6.5% percent at $2.372, up more than 25% over the past five days.

US consumer confidence for December came in at 96.5, topping expectations. S & P/Case-Shiller Home Price index for October rose 5.2% in October, greater than the 4.9% gain in September.

European markets climbed 1%-2%.

AT HOME

Benchmark indices ended marginally higher after a choppy trade. Sensex settled at 26079, up 45 points while Nifty added 4 points to finish at 7929. BSE mid-cap index gained 0.4% but the small-cap index lost 0.1%. BSE Telecom and Auto indices gained 0.7% and 0.6% respectively, becoming top gainers among the sectoral indices while Realty and Capital Goods indices lost the most, down 0.9% and 0.5% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 8 cr, 699 cr and 3 cr respectively. DIIs were net buyers to the tune of Rs 6 cr.

Rupee depreciated 20 paise to end at 66.39/$.

OUTLOOK

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

We have been working with an upside target of 7980 after Nifty managed to cross the 7850 hurdle.

After Monday's upmove, yesterday was a day of consolidation as the benchmark, after a choppy trade, managed to end marginally higher at 7929.

7980, the top made in early December, continues to be upside target to eye. Immediate support on the hourly chart continues to be at 7850, which should serve as the stop loss for trading longs. Some profit booking is advised around 7980.

NIFTY ON TRACK TO ACHIEVE 7980 TARGET; TRAIL STOP LOSS TO 7850

NIFTY ON TRACK TO ACHIEVE 7980 TARGET; TRAIL STOP LOSS TO 7850

WORLD MARKETS                             

US indices, weighed down by a renewed slide in oil prices, ended with modest cuts.

Nymex oil fell $1.29 or 3.4% to $36.81 a barrel. Brent oil hovered near 11-year low, down $1.28 at $36.61 a barrel.

European markets, led lower by energy stocks, lost 0.4%-1.3%.

Earlier, Shanghai Composite fell 2.5% after the data over the weekend showed profits earned by Chinese industrial companies in November fell for the sixth-straight month.

AT HOME

Benchmark indices climbed eight tenth of a percent yesterday, starting the last week of the calendar 2015 on a positive note and closing at the highest level since 1st December. Sensex settled at 26034, up 195 points while Nifty added 64 points to finish at 7925. BSE mid-cap and small-cap indices gained 0.1% and 0.5% respectively. BSE Healthcare and Utilities indices gained 1.3% and 1.2% respectively, becoming top gainers among the sectoral indices while Telecom and Metal indices lost 1% and 0.8% respectively.

FIIs net sold stocks and index futures worth Rs 303 cr and 90 cr respectively but net bought stock futures worth rs 610 cr. DIIs were net buyers to the tune of Rs 988 cr.

Rupee appreciated 2 paise to end at 66.19/$.

OUTLOOK

Today morning, Asian markets are trading mixed and SGX Nifty is suggesting about 15 points higher opening for our market.

Readers would recall that we had initiated a buy on Nifty when immediate hurdle of 7700 was taken out. We were working with an initial target of 7850, which was the 34-DMA at that time. We had also said that after the crossover of 7850, 7980, the top made in early December, would be the next target to eye.

After achieving 7850 target on 17th December, Nifty consolidated for couple of days and then took out this hurdle last Wednesday. The benchmark kept up the momentum on the first day of the new week by closing at 7925 yesterday and is on track to achieve 7980 target.

Immediate support on the hourly chart has moved up to 7850, with the stop loss of which trading longs should be held on to. Some profit booking is advised around 7980.

STAY LONG WITH THE STOP LOSS OF 7810

STAY LONG WITH THE STOP LOSS OF 7810

WORLD MARKETS                             

Nasdaq ended marginally higher while Dow and S & P 500 fell 0.3% and 0.2% respectively in the shortened Christmas Eve session on Thursday.

Weekly jobless claims came in at 267,000.

Nymex oil rose 60 cents or 1.6% to $38.10 a barrel for the biggest weekly gain since early October.

Among European markets, Germany and Italy were shut. FTSE and Spain gained 0.2% and 0.4% respectively while France lost 0.2%.

For the week, US indices gained 2.5-2.8%.

AT HOME

Benchmark indices ended marginally lower after a choppy trade ahead of the long weekend. Sensex settled at 25839, down 12 points while Nifty lost 5 points to finish at 7861. BSE mid-cap and small-cap indices however gained 0.3% and 0.5% respectively. BSE Consumer Durable index and Bankex lost 0.9% and 0.4% respectively, becoming top losers among the sectoral indices while Telecom and Utilities indices gained the most, up 1% and 0.8% respectively.

FIIs net sold stocks worth Rs 112 cr but net bought index futures and stock futures worth Rs 354 cr and 101 cr respectively. DIIs were net buyers to the tune of Rs 8 cr.

Forex markets were shut Thursday on account of Id-E-Milad.

For the week, Sensex and Nifty gained 1.2% and 1.3% respectively, extending the winning streak to second consecutive week.

OUTLOOK

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

In Thursday's report we had mentioned that having crossed the 7850 hurdle, the benchmark is now headed to 7980, which was the top made in early December.

That continues to be the view. 7810 continues to be the immediate support on the hourly chart, with the stop loss of which trading longs should be held on to.

NIFTY TAKES OUT 7850 HURDLE; STAY LONG WITH STOP LOSS OF 7810

NIFTY TAKES OUT 7850 HURDLE; STAY LONG WITH STOP LOSS OF 7810

WORLD MARKETS                             

US indices soared 0.9%-1.2% yesterday on the back of healthy economic data and the recovery in oil prices, extending the winning streak to third straight day.

Personal consumption expenditures rose 0.3% on-month in November after remaining flat in October, adding to the market's optimistic mood one day after better-than-expected third-quarter growth data. The final University of Michigan consumer sentiment survey for December was 92.6, up from 91.3 in November. Durable goods orders were unchanged in November. New home sales rose 4.3% in November to a seasonally adjusted annual rate of 490,000 units, following a downward revision to October's sales pace to 470,000 units.

Energy stocks gained after Nymex oil soared $1.36 or 3.8% to $37.50 a barrel, after data showed U.S. crude inventories fell by 5.9 million barrels in the last week, compared with expectations for an increase of 1.1 million barrels.

European markets soared 1.9%-2.6%.

AT HOME

After a gap up opening, benchmark indices added some more gains through the session to end higher by a percent. Sensex settled at 25850, up 260 points while Nifty added 80 points to finish at 7866. BSE mid-cap and small-cap indices gained 0.3% and 0.4% respectively. All the BSE sectoral indices ended higher with Telecom and Metal indices leading the tally, up 2.3% and 1.9% respectively. FIIs net bought stocks, index futures and stock futures worth Rs 386 cr, 556 cr and 250 cr respectively. DIIs were net buyers to the tune of Rs 633 cr.

Rupee appreciated 11 paise to end at 66.205/$.

The Winter Session of Parliament ended on a disappointing note yesterday with both the Goods and Service Tax (GST) Constitutional Amendment Bill as well as the Bankruptcy Bill failing to clear vote.

In the Financial Stability Report released yesterday, RBI said that India's financial system continues to be stable and the relatively stronger macroeconomic fundamentals adds resilience to face the still prevailing uncertainty and emerging risks in the global economy and financial markets. The RBI further sounded caution on the quality of assets, adding that risks to the banking sector has increased since the publication of the last FSR (June 2015) that highlighted Indian economy's resilience, saying there was no room for complacency.

OUTLOOK

Today morning Asian markets are trading with gains in the vicinity of half a percent and SGX Nifty is suggesting about 20 points higher opening for our market.

In yesterday's report we had reiterated our view that 7850 continues to be immediate hurdle, a sustained trading above which will open up the space for the further upside till about 7980, the top made in early December.

The benchmark, after four days of struggle, finally crossed this hurdle yesterday by closing at 7866 and as mentioned above, next target to eye now is 7980.

Immediate support on the hourly chart has moved up to 7810, with the stop loss of which long positions should be held on to.

NIFTY AGAIN RESISTED AT 7850; 7700 CONTINUES TO BE SUPPORT

NIFTY AGAIN RESISTED AT 7850; 7700 CONTINUES TO BE SUPPORT

WORLD MARKETS                             

US indices gained 0.6%-1% yesterday, helped by some stabilization in oil prices and recovery in beaten down sectors. All 10 sectors of S & P 500 gained with consumer staples, energy, industrials and materials gaining more than 1%.

The final read on third-quarter GDP came in at an annualized rate of 2%, down slightly from the second estimate of 2.1% but above the advance estimate of 1.5%. Existing home sales declined 10.5% in November, far greater than expected. The Richmond Fed manufacturing index for December was 6, up from a minus 3 read last month and minus 1 in October.

Nymex oil rose 33 cents or 0.92% to $36.14 a barrel. Brent settled down 24 cents or 0.66% to $36.11 a barrel.

European markets ended mixed.

AT HOME

After rebounding more than half a percent from the opening weakness, benchmark indices sold-off in the late noon trade to end lower by six-tenth of a percent. Sensex settled at 25591, down 145 points while Nifty lost 48 points to finish at 7786. BSE mid-cap and small-cap indices lost 0.3% and 0.02% respectively. BSE IT and Metal indices lost 1.2% and 1% respectively, becoming top losers among the sectoral indices while Consumer Durable and Telecom indices gained 0.8% and 0.7% respectively.

FIIs net bought stocks and stock futures worth Rs 168 cr and 42 cr respectively but net sold index futures worth Rs 175 cr. DIIs were net buyers to the tune of Rs 238 cr.

Rupee appreciated 3 paise to end at 66.32/$.

India's current account deficit (CAD), or the difference in the value of goods and services exported and imported, widened from USD 6.2 billion in the first quarter (1.2%t of gross domestic product) of the fiscal year to USD 8.2 billion (1.6% of GDP) in the second. In the second quarter last year, it stood at USD 10.9 billion (2.2% of GDP).

OUTLOOK

Today morning Asian markets are trading with gains in the vicinity of half a percent and SGX Nifty is suggesting about 40 points higher opening for our market.

For last two sessions we have maintained the view that 7850-7700 is the immediate range, a breach of which, on either side, is required for taking a fresh view on Nifty.

Yesterday, the benchmark, after touching a high of 7846, slipped to end at 7786 and is set to open higher today.

7850, continues to be immediate hurdle, a sustained trading above which will open up the space for the further upside till about 7980, the top made in early December. 7700 continues to be immediate support, a breach of which would open up the possibility of the retest of 7550 bottom.

BRENT OIL HITS 11 YEAR LOW; 7700-7850 CONTINUES TO BE IMMEDIATE RANGE FOR NIFTY

BRENT OIL HITS 11 YEAR LOW; 7700-7850 CONTINUES TO BE IMMEDIATE RANGE FOR NIFTY

WORLD MARKETS                             

US indices gained 0.7%-0.9% yesterday. Goldman Sachs contributed the most to gains, while Chevron and Exxon Mobil were among the few decliners.

Chicago Fed National Activity Index showed a decline to minus 0.30 in November from minus 0.17 in October.

Nymex oil settled up 1 cent at $34.74 a barrel after earlier dipping below $34 to hit a fresh near-seven-year low. Brent settled higher at $36.35 a barrel, after hitting $36.04 a barrel, its lowest since July 2004. Natural gas bounced from near multi-year lows to settle up 8.2% for its largest one-day gain since Oct. 27. Gold rose $16 to $1081 an ounce.

European markets fell 0.3%-3.6% with Spain leading the losses after the ruling People's Party fell short of majority in the election held on Sunday.

AT HOME

After a negative start, benchmark indices saw a sustained northward move though the session to end higher by about nine tenth of a percent. Sensex settled at 25736, up 217 points while Nifty gained 72 points to finish at 7834. BSE mid-cap and small-cap indices rose 0.6% and 0.8% respectively. Except a 0.6% and 0.4% cut in BSE Consumer Durable and Healthcare indices respectively, all the sectoral indices ended in green with Metal index and Bankex leading the tally, rising 1.5% and 1.4% respectively.

FIIs net bought stocks and index futures worth Rs 37 cr and 53 cr respectively but net sold stock futures worth Rs 394 cr. DIIs were net buyers to the tune of Rs 63 cr.

Rupee appreciated 5 paise to end at 66.35/$.

Sun Pharma plunged 4.3% after the USFDA issued a warning letter to the company over violation of manufacturing norms in its facility at Halol in Gujarat.

OUTLOOK

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

As mentioned in yesterday's report 7690-7850 is the immediate range, a crossover of which is required for the fresh direction. 7850 was the 34-DMA where the benchmark got resisted on last Thursday. A crossover of this hurdle would open up the space for the further upside till about 7980, the top made in early December.

7690 is the immediate support on the hourly chart, a breach of which would open up the possibility of the retest of 7550 bottom made last week.

7690-7850 IS THE IMMEDIATE RANGE

7690-7850 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

US indices tumbled 1.6%-2.1% on Friday, weighing low oil and economic data. Financials plunged 2.5% to lead the sectoral losers.

US flash services PMI came in at 53.7, down from the final November read of 56.1 and the lowest print in 12 months.

Nymex oil fell 22 cents or 0.6% to $34.73 a barrel. Baker Hughes said oil rigs rose by 17, after four straight weeks of decline.

Dollar index fell more than half a percent. Gold rose $15 to $1065 an ounce.

European markets lost 0.8%-1.6%. Mining stocks however gained as metal prices rose on the back of a weaker dollar. Copper gained more than 3% to trade at $2.11 per pound.

Earlier, Nikkei 225 ended down nearly 2% as there was some disappointment around the level of stimulus measures from the Bank of Japan.

For the week, US indices lost 0.2%-0.8%. European markets gained 1%-2.6%. Nymex oil dipped 2.5%.

AT HOME

Benchmark indices nosedived 1.1% on Friday, breaking the 4-day winning streak. Sensex settled at 25519, down 285 points while Nifty lost 82 points to finish at 7762. BSE mid-cap index however ended 0.1% higher while small-cap index lost 0.2%. BSE IT and Teck indices lost 1.3% and 1.1% respectively, becoming top losers among the sectoral indices while Consumer Durable and Utilities indices gained 1% and 0.3% respectively.

FIIs net sold stocks and stock futures worth Rs 7 cr and 947 cr respectively but net bought index futures worth Rs 437 cr. DIIs were net sellers to the tune of Rs 405 cr.

Rupee appreciated 3 paise to end at 66.395/$.

For the week, Sensex and Nifty lost 1.9% and 2% respectively.

An all-party meeting convened by Rajya Sabha Chairman Hamid Ansari Friday failed to bring a consensus on the passage of the GST bill, but members of the Upper House decided to pass six other pending bills, viz. SC ST (Prevention of Atrocities) Amendment Bill, the Appropriation Bills, the Anti Hijacking Bill, the Atomic Energy Amendment Bill, the Commercial Courts Ordinance Bill and the Arbitration and Conciliation Amendment Bill-  in the remaining period of three days of the Winter Session.

OUTLOOK

Today morning Shanghai and Hang Seng are little changed, Nikkei is down nearly a percent and half and other Asian markets are trading with modest cuts. SGX Nifty is suggesting about 25 points lower opening for our market.

After achieving the 34-DMA target of 7850 on Thursday, Nifty witnessed profit booking on Friday to end at 7762.

As mentioned in Friday's report 7690 continues to be immediate support, a breach of which will generate a sell on the hourly chart and would open up the possibility of the retest of 7550 bottom made last week.

On the way up 7850 continues to be immediate hurdle upon crossover of which 7980 would be the next target.

This makes 7690-7850 a no-trading zone, a crossover of which, on either side, should be awaited for taking fresh view on Nifty.

NIFTY ACHIEVES 7850 TARGET

NIFTY ACHIEVES 7850 TARGET

WORLD MARKETS                             

US indices plunged 1.3%-1.5%, breaking three-day winning streak, as energy stocks tumbled on the back of falling oil. Material stocks were pressured by lower commodities on account of strong dollar.

Nymex oil fell 57 cents, or 1.6%, to $34.95 a barrel, its lowest since February 2009. Brent settled about 0.9% lower at $37.06 a barrel, its lowest in nearly seven years. Natural gas ended 2% percent lower at $1.755, its lowest since March 1999.

The U.S. current account deficit in the third quarter increased 11.7% to $124.1 billion, its highest level in nearly seven years, as a strong dollar weighed on exports and the profits of multinational corporations. The Philly Fed index for December was minus 5.9, the lowest of the year after a positive 1.9 print in November. Leading indicators for November showed a 0.4% rise, with October unrevised, up 0.6%. Initial jobless claims came in at 271,000.

Dollar index climbed 1.3%. Gold tumbled $27 to $1050 an ounce.

European markets gained 0.7%-2.6% with DAX leading the tally.

AT HOME

Benchmark indices soared a percent and fifth yesterday, extending the winning streak to fourth straight day and closing at the highest level since 3rd December. Sensex settled at 25804, up 309 points while Nifty rose 93 points to finish at 7844. BSE mid-cap and small-cap indices climbed 1.6% and 1.7% respectively. All the BSE sectoral indices ended in green with Metal and Basic Material indices leading the tally, up 2.5% and 2.1% respectively.

FIIs net bought stocks and stock futures worth Rs 638 cr and 25 cr respectively but net sold index futures worth Rs 526 cr. DIIs were net sellers to the tune of Rs 366 cr.

Rupee appreciated 31 paise to end at 66.42/$.

OUTLOOK

Today morning Asian markets are trading with cuts of 0.5%-0.8% and SGX Nifty is suggesting about 50 points lower opening for our market.

Readers would recall that ever since Nifty broke immediate hurdle of 7700, we had set a target of 7815-7850 where 7815 was the 61.8% retracement level of the recent 7980-7550 fall and 7850 was the 34-DMA.

The benchmark yesterday touched a high of 7853, achieving the above mentioned target and vindicating our view.

7850 continues to be important immediate hurdle, a crossover of which is required for the further upmove.  7980, the top made in early December, would be the next target if that happens.

Immediate support on the hourly chart has moved up to 7690, a breach of which will generate a sell on the hourly chart and can take Nifty back to 7540 bottom.

Traders are advised to wait for the crossover of 7850 for creating fresh longs. Existing longs can be held with the stop loss of 7690.

A “DOVISH” HIKE IT IS

A “DOVISH” HIKE IT IS

WORLD MARKETS                             

US indices ended with gains of 1.3%-1.5% yesterday after the Federal Reserve raised rates for the first time in nearly a decade.

As was widely expected, the U.S. central bank raised its target funds rate by a quarter point to a range of 0.25% to 0.5%. Fed Chair Janet Yellen said in a press conference that policy would remain accommodative and that the significance of the first hike should not be overblown.

Treasury yields rose, with the 2-year yield crossing 1% for the first time since 2010. The 10-year yield hit a high of 2.33%, its highest since Dec. 4. Dollar index gained about 0.2%. Gold rose $15 to $1077 an ounce.

Nymex oil fell $1.83 or 5% to $35.52 a barrel, after weekly EIA crude inventories showed a rise of 4.8 million barrels.

US Industrial output slipped 0.6% in November after a downwardly revised 0.4% dip in October. December Flash Manufacturing PMI fell to 51.3, the weakest improvement in manufacturing sector business conditions in three years. Housing starts rose 10.5% in November, while building permits rose 11%. Mortgage refinances rose 1% on rate fears.

European markets, except a modestly lower Italy, ended flat to modestly higher.

AT HOME

After a positive start, benchmark indices added some more gains through the session to end higher by about seven tenth of a percent, extending the winning streak to third straight day. Sensex settled at 25494, up 174 points while Nifty rose 50 points to finish at 7751. BSE mid-cap and small-cap indices gained 0.4% and 0.2% respectively. BSE Telecom and Oil & Gas indices gained the most among the sectoral indices, rising 2.4% and 1.7% respectively while FMCG and Consumer Durable indices lost 0.6% each.

FIIs net sold stocks worth Rs 503 cr but net bought index futures and stock futures worth Rs 92 cr and 537 cr respectively. DIIs were net buyers to the tune of Rs 1024 cr.

Rupee appreciated 19 paise to end at 66.73/$.

M & M plunged 5.3% after the Supreme Court imposed a ban on registration of diesel cars with over 2000 cc engine in Delhi till March 31, 2016.

The government yesterday raised excise duty on petrol by Rs. 0.30 a litre and on diesel by a steep by Rs. 1.17 a litre. Since November 2014, the government has raised excise duty on petrol by Rs 9.65 a litre and on diesel by Rs 7.97 a litre in six instalments.

OUTLOOK

Today morning Nikkei is up 2%, other Asian markets are trading with gains of upto half a percent and SGX Nifty is suggesting about 15 points higher opening for our market.

We had advised initiating trading longs after Nifty crossed immediate hurdle of 7700 for the target of 7815, which is the 61.8% retracement level of the recent 7979-7551 fall. Above 7815, 34-DMA, placed around 7850, would be the next hurdle to eye.

This makes 7815-7850 the immediate target area.

7650 continues to be immediate support on the hourly chart, with the stop loss of which trading longs should be held on to.

ALL EYES ON FED

ALL EYES ON FED

WORLD MARKETS                             

US indices gained nearly a percent yesterday ahead of the important Fed decision. Energy and financials led the gainers.

Nymex oil rose for the second-straight day, up $1.04 or 2.9% to $37.35 a barrel.

November Consumer Price Index (CPI) came in unchanged, while ex-food and energy the figure rose 0.2%. In the 12 months through November, the core CPI rose 2% percent, which analysts noted matched the Fed's target for the first time since May 2014. Empire Manufacturing index for December showed minus 4.6, compared with November's minus 10.7 print. The NAHB housing market index missed expectations for a slight gain with a one-point decline to 61.

Dollar index rose about 0.6%. Treasury yields rose, with the 2-year yield at 0.97% and the 10-year yield near 2.27%.

European markets soared 2.4%-3.7%. Auto stocks jumped after data showed that Europe saw a 13.7% increase in new car registrations in November, the 27th month of consecutive growth.

AT HOME

After a rangebound morning trade, benchmark indices spiked up in the noon trade to end with gains of seven tenth of a percent, extending the winning streak to second straight day. Sensex settled at 25320, up 170 points while Nifty rose 51 points to finish at 7701. BSE mid-cap and small-cap indices gained 0.6% and 0.7% respectively. BSE Consumer Durable and Auto indices were the top gainers among the sectoral indices, rising 1.5% and 1.3% respectively while Metal and Telecom indices lost 0.2% each.

FIIs net bought stocks and stock futures worth Rs 49 cr and 3 cr respectively but net sold index futures worth Rs 438 cr. DIIs were net buyers to the tune of Rs 274 cr.

Rupee appreciated 17 paise to end at 66.92/$.

India's exports fell for the twelfth consecutive month in November by contracting 24% to $20 bn. Imports too fell 30% to $30 bn.

Oil Marketing Companies cut Petrol and Diesel prices by 50 paise and 46 paise respectively.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.5%-1.8% and SGX Nifty is suggesting about 30 points higher opening for our market.

In yesterday's report we had mentioned that "7700, the erstwhile support, would now act as the immediate hurdle, a crossover of which is required to generate a buy on the hourly chart, upon happening of which further upside till about 7815, which is the 61.8% retracement level of the recent 7979-7551 fall can materialise".

The benchmark yesterday touched a high of 7705 before closing at 7701 and is set to open higher today.

As mentioned above, 7815 is the next upside target to eye. Immediate support on the hourly chart is placed around 7645, with the stop loss of which trading longs can be initiated. Take the “options” route keeping in mind the important Fed decision.

US Fed, in its much anticipated decision, is widely expected to raise the fed funds rate by a quarter point today, while emphasizing that the pace of tightening will be gradual. A hike would be the first since June 2006.

NIFTY REBOUNDS AFTER NEARLY ACHIEVING 7540 TARGET

NIFTY REBOUNDS AFTER NEARLY ACHIEVING 7540 TARGET

WORLD MARKETS                             

US indices gained 0.4%-0.6% yesterday as oil stabilised.

Nymex oil rose 69 cents or 1.94% to $36.31 a barrel, pausing a six-day losing streak that took crude to its lowest in nearly seven years. Natural gas pared losses to hold about 4.8% lower after hitting a low of $1.86, its lowest in nearly 14 years.

European markets tumbled 1.3%-2.4%. Speaking in Bologna, Italy, ECB President Draghi reiterated his call that the bank stood ready to act and once again added that governments of the 18 countries that use the euro should also be playing their part.

Earlier Shanghai Composite gained about 2.5% after some encouraging reports on Chinese industrial production, retail sales and fixed asset investment.

Gold fell $12.30 at $1063.40 an ounce.

AT HOME

After falling nearly three fourth of a percent in the initial trade, benchmark indices spiked up a percent and quarter from the bottom of the day to end higher by about half a percent. Sensex settled at 25150, up 106 points while Nifty rose 40 points to finish at 7650. BSE mid-cap and small-cap indices gained 0.7% and 0.4% respectively. BSE Metal and Basic Material indices climbed 2.4% and 1.6% respectively, becoming top gainers among the sectoral indices while Realty and Capital Goods indices lost 0.2% each.

FIIs net sold stocks worth Rs 157 cr but net bought index futures and stock futures worth Rs 165 cr and 124 cr respectively. DIIs were net buyers to the tune of Rs 386 cr.

FIIs net sold stocks worth Rs 157 cr but net bought index futures and stock futures worth Rs 165 cr and 124 cr respectively. DIIs were net buyers to the tune of Rs 386 cr.

Rupee tumbled 21 paise to end at 67.09/$.

Consumer Price Inflation spiked to a 14-month high of 5.41% in November from 5% in October, led by sharp rise in food price inflation.

OUTLOOK

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

Just to reiterate, we had initiated "short" recommendation on Nifty when 7880 was breached on 3rd December. While 7700 was our initial target we were quite sure that retest of 7540, the bottom made in September, is on the cards.

The benchmark touched a low of 7551 yesterday, nearly achieving the 7540 target mentioned above and vindicating our negative stance. The benchmark rebounded smartly to end at 7650.

7700, the erstwhile support, would now act as the immediate hurdle, a crossover of which is required to generate a buy on the hourly chart, upon happening of which further upside till about 7815, which is the 61.8% retracement level of the recent 7979-7551 fall can materialise.

On the way down, 7540 continues to be important support, upon breach of which 7300, in the vicinity of which 34-month average as well as the lower band of monthly bollinger are placed, would be the major support to eye.

OIL-TUMBLES TO NEAR SEVEN-YEAR LOW; NIFTY ON TRACK TO ACHIEVE 7540

OIL-TUMBLES TO NEAR SEVEN-YEAR LOW; NIFTY ON TRACK TO ACHIEVE 7540

WORLD MARKETS                             

US indices nosedived 1.8%-2.2% on Friday as oil hit near-seven-year lows and news of a roughly $800 million junk bond fund preventing withdrawals weighed on the sentiment. Caution ahead of Fed's highly anticipated decision on rates this week also played its role.

Nymex oil settled down $1.14 or 3.10% at $35.62 a barrel, its lowest since February 2009 after the International Energy Agency (IEA) warned global oversupply could worsen in the new year.

U.S. chemical giants DuPont and Dow Chemical officially agreed to merge in an all-stock deal to form a combined company valued at $130 billion.

November retail sales rose 0.2%, slightly missing expectations on the headline number. Taking out autos, gasoline, building materials and food services, retail sales increased 0.6% after an unrevised 0.2% gain in October. Producer price index advanced 0.3% in November after falling 0.4% in October.

European markets tumbled 1.5%-2.4% with DAX leading the tally.

Earlier, China's yuan sank to a four-and-a-half-year low after the PBoC set the midpoint rate for the currency down further, stoking expectations of further weakness in the currency.

For the week, US indices fell 3.3%-4.1% and European markets lost 3.5%-4.6%. Nymex oil sank 11%.

AT HOME

Thursday's recovery proved short-lived as Sesnex and Nifty nosedived 0.8% and 1% respectively on Friday to end at the lowest level since 7th September. Sensex settled at 25044, down 208 points while Nifty lost 73 points to finish at 7610. BSE mid-cap and small-cap indices lost 1.2% and 0.8% respectively. Except a 0.1% rise in BSE IT index, all the sectoral indices ended in red with Realty index and Bankex leading the tally, down 2.5% and 2.2% respectively.

FIIs net bought stocks and stock futures worth Rs 254 cr and 223 cr respectively but net sold index futures worth Rs 921 cr. DIIs were net buyers to the tune of Rs 293 cr.

Rupee depreciated 17 paise to end at 66.88/$.

IIP for October hit a 5-year high at 9.8% as against 3.6% in September.

For the week, Sensex and Nifty lost 2.3% and 2.2% respectively, extending the losing streak to second straight week.

OUTLOOK

Data released over the weekend showed China's factory output grew and annual 6.2% in November, up from October's 5.6% and beating expectations of 5.6%. Growth in China's fixed-asset investment, one of the main drivers of the economy, rose 10.2% in the first 11 months, unchanged from the gain in January-October, and higher than an expected 10.1% rise. Retail sales grew an annual 11.2% in November - the strongest expansion this year - compared with 11% percent in October.

Today morning Asian markets are trading with cuts of 0.6%-2.7% with Nikkei leading the losses and SGX Nifty is suggesting about 40 points lower opening for our market.

Despite Thursday's smart rebound, in Friday's report we had maintained our negative stance and had reiterated the downside target of 7540. The benchmark plunged 73 points on Friday and is set to open further lower today, vindicating our negative view.

7540 continues to be the downside target to eye below which next major support to eye would be 7300, in the vicinity of which 34-month average as well as the lower band of bollinger on the monthly chart is placed.

Immediate resistance on the hourly chart has moved to 7690, with the stop loss of which short positions should be held on to.

CPI for November would be released today and is expected to come in at 5.38% as against previous month's 5%. Core CPI is expected at 4.62%, up from 4.41%. November WPI too would be out today and is expected to sow a print of -2.6%, improving from previous month's -3.81%. Core WPI is expected at -2.38% as against last month's -2.9%.

7730-7750 IS THE IMMEDIATE RESISTANCE AREA

7730-7750 IS THE IMMEDIATE RESISTANCE AREA

WORLD MARKETS                             

US indices gained 0.2%-0.5% yesterday, shrugging-off pressure from further decline in oil prices as beaten-down sectors such as energy rebounded.

Nymex oil fell 40 cents or 1.1% to $36.76 a barrel after OPEC said its November production reached a 2009 high. OPEC published its latest monthly oil market report on yesterday, in which its forecast said that the supply of oil from countries outside of the OPEC will contract next year as world oil demand rises.

Weekly jobless claims rose to 282000, coming in higher than the expected 269000. Import prices fell 0.4% in November, as oil prices weighed.

Dollar index rose about half a percent with the euro holding above $1.09. Gold fell $4.50 to $1072 an ounce.

European markets, except a marginally higher DAX, lost upto 0.6%.

AT HOME

Benchmark indices soared nine tenth of a percent yesterday, breaking six-day losing streak. Sensex settled at 25252, up 216 points while Nifty rose 71 points to end at 7683. BSE mid-cap and small-cap indices gained 0.9% and 1.2% respectively. All the BSE sectoral indices ended in green with Energy and Oil & Gas indices leading the tally, up 2.4% and 1.9% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 580 cr, 120 cr and 203 cr respectively. DIIs were net buyers to the tune of Rs 411 cr.

Rupee appreciated 12 paise to end at 66.71/$.

OUTLOOK

Today morning, Nikkei is up nearly a percent but Shanghai and Hang Seng are down nearly half a percent. SGX Nifty is suggesting a marginally lower start for our market.

Yesterday, after touching a low of 7610 in the morning trade, Nifty rebounded smartly to end at 7683.

The trend however continues to be negative. The region in the vicinity of 7730, which was earlier acting as a support, would now act as the immediate hurdle. 7750 is where the 38.2% retracement level of the recent 7979-7606 fall is placed. This makes 7730-7750 immediate resistance area, a sustained trading above which is required for the further upmove.

On the way down, 7540 continues to be the downside target to eye.

IIP for October would be released today. The expected range for the figure is as wide as 4.5%-10.8%. In September, IIP growth stood at 3.6%.

NIFTY ON TRACK TO ACHIEVE 7540 TARGET; TRAIL STOP LOSS TO 7770

NIFTY ON TRACK TO ACHIEVE 7540 TARGET; TRAIL STOP LOSS TO 7770

WORLD MARKETS                             

Dow and S & P 500 fell 0.4% and 0.8% respectively while Nasdaq tumbled 1.5% yesterday as oil turned negative and tech stocks lagged.

Dow in fact saw triple digit gain at the open on the back of news of a potential merger between Dow Chemical and DuPont, which jumped nearly 12% for its best day over.

The reversal happened after the oil reversed initial gains. The initial rise was on the back of US Energy Information Administration report which showed crude inventories in the country fell by 3.6 million barrels, for the first time after a 10-week stockpile build-up. Nymex oil finally settled down 35 cents or 0.9% at $37.16 a barrel while brent oil fell 6 cents to $40.20 a barrel.

Apple fell more than 2% and biotech stocks declined, putting added pressure on Nasdaq.

The euro climbed above $1.10 while dollar index fell more than a percent to around 97.40.

European markets fell upto a percent.

AT HOME

Benchmark indices nosedived 1.1% yesterday, extending the losing streak to sixth straight day and closing at the lowest level since 7th September. Sensex settled at 25036, down 274 points while Nifty lost 89 points to finish at 7612. BSE mid-cap and small-cap indices lost 1.8% and 2.2% respectively. All the BSE sectoral indices ended in red with Metal and Basic Materials indices leading the tally, down 3.1% and 2.7% respectively.

FIIs net sold stocks and index futures worth Rs 527 cr and 123 cr respectively but net bought stock futures worth Rs 81 cr. DIIs were net buyers to the tune of Rs 865 cr.

Rupee ended unchanged at 66.83/$.

The Union Cabinet yesterday approved the Real Estate (Regulation & Development) Bill, 2015. The Bill will now be taken up for consideration and passing by the Parliament. In a statement the government said the Bill will provide uniform regulatory environment to ensure speedy adjudication of disputes and orderly growth of the real estate sector.

Also approved was Rs. 4,000-crore package to spur India’s ship building industry, combined with a slew of incentives which include the right of first refusal on all government purchases for Indian shipyards, tax incentives and the ‘infrastructure’ status for shipbuilding and ship repair industry that would help them tap easier financing.

The government also approved mandatory use of jute packaging material for foodgrains and sugar, a move which will provide relief to 3.7 lakh jute mill workers.

OUTLOOK

Today morning, barring a modestly higher Shanghai, other Asian markets are trading with cuts of upto a percent, and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report titled "7700 achieved, 7540 next" we had clearly mentioned that the technical setup  continues to be weak and 7540 continues to be the next downside target to eye.

The benchmark plunged 89 points to end at 7612, coming closer to 7540 target.

7540, the bottom made in early September, continues to be the next downside target to eye.

Immediate resistance on the hourly chart has moved lower to 7770, with the stop loss of which short positions should be held on to.