NIFTY BREAKS 3-DAY WINNING STREAK; IMMEDIATE SUPPORT AT 8235

NIFTY BREAKS 3-DAY WINNING STREAK; IMMEDIATE SUPPORT AT 8235

WORLD MARKETS

After rising nearly a percent and half in the initial trade, benchmark indices saw a sustained downward move through rest of the session to end lower by 0.1%-0.3% as materials and energy shares fell on lower commodity prices.

Rumors that Germany can block further quantitative easing by the ECB also dented the sentiment.

Brent crude tumbled 2% or 84 cents to $46.59/barrel while Nymex oil settled down 18 cents at $45.89.

European markets gained between 0.6%-2% with a surge in retail stocks helping to boost investor sentiment. The rate of inflation in the U.K. fell to 0.5% in December, the lowest in 14 years.

AT HOME

After trading in the positive territory for better part of the day, benchmark indices nosedived in last hour or so to end with cuts of 0.6% and 0.3% for Sensex and Nifty respectively, also breaking the three-day winning streak. Sensex lost 160 points to settle at 27426 while Nifty finished at 8299, down 24 points. BSE mid-cap index gained 0.1% while the small-cap index lost 0.4%. Except a 0.7% and 0.1% rise in BSE FMCG and Healthcare indices, all other sectoral indices ended in red with Realty and Consumer Durable indices leading the tally, giving away 1.8% and 1.2% respectively.

FIIs net bought stocks and index futures worth Rs 235 cr and 441 cr respectively but net sold stock futures worth Rs 12 cr. DIIs were net buyers to the tune of Rs 46 cr.

Rupee appreciated 2 paise to end at 62.14/$.

Indusind Bank met street expectations by reporting 28.8% rise in profit at Rs 447 cr for the quarter ended December 2014 supported by higher other income and net interest income and lower provisions. NII grew 18% to Rs 861.4 cr and other income jumped 27% to Rs 610.7 cr. Gross NPAs improved to 1.05% from 1.08% q-o-q and Net NPAs stood at 0.32%, down from 0.33%.

OUTLOOK

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

Yesterday, Nifty, after touching a high of 8357, plunged in last hour to end at 8299. A gap, created by the gap down opening on last Tuesday was placed at 8364-8328, which acted as a resistance for the benchmark.

Immediate support on the hourly chart has moved up to 8235 with the stop loss of which trading longs can be held on to. 8357, the top made yesterday, would be the immediate resistance above which 8446, the top made last week would be the next big hurdle.

India's wholesale price inflation for December would be released today and is expected to inch up to 0.3% from 0% in November.

Yes Bank and LIC Housing will report their quarterly earnings today.