NIFTY REBOUNDS FROM THE VICINITY OF 7690 SUPPORT; 7860 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY REBOUNDS FROM THE VICINITY OF 7690 SUPPORT; 7860 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS                             

US indices ended marginally lower yesterday as investors eyed some corporate news and sought further indications of support for a December rate hike from data and Fed speakers.

Health care closed down 1.6% as the greatest laggard in the S&P 500, while utilities gained about 1% to lead advancers. Energy was the second-worst performer, off nearly 1.3%.

On the data front, initial jobless claims came in at 271,000. The Philadelphia Fed Manufacturing survey's diffusion index for current activity came in for November at 1.9, its first positive reading in three months. U.S. October leading indicators rose 0.6%, slightly more than expected.

Nymex oil fell 21 cents or 0.5% to $40.54 a barrel.

European markets gained between 0.2%-1.2%. The European Central Bank meeting minutes showed the central bank considered adding more stimulus.

Earlier, the Bank of Japan kept monetary policy unchanged. The People's Bank of China said it would add yet more stimulus to the country's economy by lowering the interest rates on the loans it gives to banks.

AT HOME

Benchmark indices soared nearly a percent and half in today's trade, recouping all the losses suffered in yesterday's session. Sensex settled at 25842, up 359 points while Nifty climbed 111 points to finish at 7843. BSE mid-cap and small-cap indices gained 1.2% and 1.3% respectively. Except a 0.1% cut in BSE Healthcare index, all the sectoral indices ended in green with IT and Teck indices leading the tally, up 1.8% each.

FIIs net sold stocks worth Rs 343 cr but net bought index futures and stock futures worth Rs 23 cr and 390 cr respectively. DIIs were net buyers to the tune of Rs 234 cr.

Rupee appreciated 12 paise to end at 66.175/$.

7th Pay Commission recommended a 23.55% pay hike for the Central government employees. Total financial impact in FY 2016-17 is likely to be Rs 1.02 lac cr which is 0.65% of GDP.

OUTLOOK

Today morning Asian markets are trading with cuts of upto half a percent and SGX Nifty is suggesting about 10 points lower opening for our market.

For past three sessions we have been mentioning that 7860-7690 is the immediate range, a crossover of which, on either side, is required to take a fresh directional view on Nifty. The benchmark, after plunging to 7725 on Wednesday, rebounded yesterday to end at 7843.

7860 continues to be immediate hurdle to eye, a sustained trading above which will generate a buy on the hourly chart and would open up the space for the further upside till about 8050, where the 34-DMA is placed.