7850-7980 CONTINUES TO BE IMMEDIATE RANGE

7850-7980 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS                             

US indices lost 0.7%-0.8% yesterday on the back of decline in oil prices. Energy declined nearly 1.5% and materials lost about 1% to lead all S&P 500 sectors lower.

Nymex crude fell $1.27 or 3.4% to $36.60 a barrel after weekly crude oil inventories unexpectedly showed a build, up 2.6 million barrels. Brent oil declined 3.5% to $36.44 a barrel.

Pending home sales fell 0.9% in November from an upwardly revised October reading.

European markets fell 0.3%-1.1% with Italy and Germany leading the tally.

AT HOME

After trading in a narrow range for better part of the day, benchmark indices slipped in the late noon trade to end lower by about four tenth of a percent, breaking two-day winning streak. Sensex lost 119 points to settle at 25960 while Nifty finished at 7896, down 33 points. BSE mid-cap and small-cap indices however managed to end higher by 0.2% and 0.1% respectively. BSE IT and Teck indices lost 1.2% and 0.8% respectively, becoming top losers among the sectoral indices while Telecom and Utilities indices gained 0.5% and 0.4% respectively.

FIIs net bought stocks and index futures worth Rs 152 cr and 330 cr respectively but net sold stock futures worth Rs 251 cr. DIIs were net sellers to the tune of Rs 74 cr.

Rupee ended unchanged at 66.3875/$.

Shares of textile companies gained after the government approved an Amended Technology Upgradation Fund Scheme (A-TUFS) in place of the existing Revised Restructured TUFS for technology upgradation of the textiles industry. The move is expected to boost job creation and exports in the sector.

Container Corp, Godrej Consumer, Jet Airways and Torrent Pharma will be included in the derivative segment of NSE from tomorrow.

OUTLOOK

Today Nikkei and South Koran markets are shut, other Asian markets are trading flat to marginally higher and SGX Nifty is suggesting about 10 points higher start for our market.

Readers would recall that ever since Nifty crossed 7850 hurdle, we have been working with the upside target of 7980, which was the top made in early December.

Yesterday, after touching a high of 7945, Nifty tumbled to end at 7896.

Immediate support on the hourly chart continues to be around 7850, a breach of which would generate a sell on the hourly chart.

7980 continues to be major hurdle.