7800-7907 IS THE IMMEDIATE RANGE

7800-7907 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

After a positive start, US indices reversed to end marginally lower.

The U.S. dollar index briefly hit 100 for the first time since March, with the euro temporarily dipping below $1.06 and the yen at 122.89 yen against the greenback in the close.

US existing home sales showed a decline of 3.4% in October. The Chicago Fed National Activity Index was minus 0.04 in October, up from minus 0.29 in September.

Nymex oil fell 15 cents or 0.4% to $41.75 a barrel while Brent gained 19 cents or 0.43% to $44.85 a barrel. Saudi Arabia, one of the largest producers of oil, said in a statement it was ready to work with other oil producing and exporting nations to stabilize prices.

European markets, except a 0.7% higher Italy, ended with cuts of upto half a percent under some pressure from fluctuations in oil prices and declines in copper, which hit a multi-year low.

On the data front, flash figures for the euro zone composite purchasing managers' index (PMI) for November came in at 54.4, hitting its highest level since May 2011.

Gold fell $10 to $1067 an ounce.

AT HOME

Benchmark indices ended marginally lower after a rangebound but choppy trading session. Sensex lost 49 points to settle at 25819 while Nifty finished at 7849, down 7 points. BSE mid-cap and small-cap indices however gained 0.4% each. BSE Consumer Durable and Realty indices gained the most among the sectoral indices, rising 1.1% and 0.9% respectively. Metal and FMCG indices were the top losers, down 1.2% each.

FIIs net sold stocks worth Rs 35 cr but net bought index futures and stock futures worth Rs 403 cr and 289 cr respectively. DIIs were net buyers to the tune of Rs 90 cr.

Rupee tumbled 29 paise to end at 66.47/$, a near two-month low.

GAIL soared 5% after the reports that RasGas of Qatar has agreed to waive USD 1 billion penalty on India for breaking a long-term LNG contract, and has also consented to change the pricing formula to reflect the slump in global energy rates.

Hindalco and Vedanta tumbled 3.6% and 3% respectively after the BSE's announcement that both companies will shift out of the benchmark Sensex from December 21.

OUTLOOK

Today morning Asian markets are trading with modest cuts and SGX Nifty is suggesting about 15 points lower opening for our market.

In yesterday's report we had mentioned that Nifty is in a buy mode on the hourly chart and traders should stay long with the stop loss of 7800.

That continues to be the view. A sustained trading below 7800 will generate a sell on the hourly chart and 7700 would be the next downside target if that happens.

7907, the top made on Friday, is the immediate hurdle above which 8050, where the 34-DMA is placed would be the major hurdle to eye.