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.