7860-7690 ARE IMMEDIATE RESISTANCE-SUPPORT LEVELS

7860-7690 ARE IMMEDIATE RESISTANCE-SUPPORT LEVELS

WORLD MARKETS                             

US indices soared 1.2%-1.5%, helped by a sharp jump in oil prices and as investors brushed off jitters related to last Friday's deadly terror attacks in Paris.

Energy stocks gained the most as Nymex oil reversed three-straight days of declines to settle up $1 or 2.45%, at $41.74 a barrel.

November Empire Manufacturing index came in at minus 10.7 for a fourth-straight month of contraction.

European markets ended mixed with modest changes. Final reading on October Eurozone inflation came in at 0.1%, up from an initial reading of zero.

Earlier, Hang Seng and Nikkei both closed down more than 1%, while the Shanghai composite ended about 0.7% higher.

AT HOME

After falling more than half a percent in the initial trade, benchmark indices rallied more than a percent from the bottom of the day to end higher by nearly six tenth of a percent. Sensex settled at 25760, up 150 points while Nifty rose 44 points to finish at 7807. BSE mid-cap and small-cap indices gained 0.2% and 0.5% respectively. Bankex and Capital Goods index gained 1.5% and and 1.1% respectively, becoming top gainers among the sectoral indices while IT and Teck indices lost 1% and 0.9% respectively, becoming top losers.

FIIs net sold stocks, index futures and stock futures worth Rs 1051 cr, 646 cr and 358 cr respectively. DIIs were net buyers to the tune of Rs 662 cr.

Rupee appreciated 10 paise to end at 65.995/$.

India's wholesale price inflation stood at negative 3.81% in October as against negative 4.54% in September. This was the 12th straight month of deflation for wholesale prices.

India's exports fell 17.5% y-o-y to $21.3 bn in October while imports shrank 21.2% to $31.1 bn, leaving a trade deficit of $9.8 bn as against $10.48 in September.

OUTLOOK

Today morning Asian markets are trading with gains of 0.5%-2% and SGX Nifty is suggesting about 40 points higher opening for our market.

In yesterday's report we had mentioned that 7690, the bottom made on 29th September, is the next downside target to eye below which 7540, the bottom made in September would be the next major support.

The benchmark, after touching a low of 7714, rebounded smartly to end at 7807.

After today's gap up opening, Nifty would be closer to the immediate hurdle of 7860, a crossover of which would generate a buy on the hourly chart and would open up the further upside till about 8060, where the 34-DMA is placed.

Traders are advised to keep a stop loss of 7860 in short positions.