Wednesday, December 30, 2015

7980 CONTINUES TO BE UPSIDE TARGET; 7850 IMMEDIATE SUPPORT

7980 CONTINUES TO BE UPSIDE TARGET; 7850 IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices soared 1%-1.3% yesterday as technology sector led the gainers and commodity prices rebounded.

Nymex oil rose $1.06 or 2.9% to $37.87 a barrel while Brent gained 3.5% to $37.91 a barrel. Copper climbed more than 3% to its highest level in more than a week. Media reports suggested that nine large copper smelters in China have agreed to cut sales of spot metal by as much as 200,000 tonnes in the first quarter of 2016 to counter low prices. Natural gas extended Monday's surge to settle up 6.5% percent at $2.372, up more than 25% over the past five days.

US consumer confidence for December came in at 96.5, topping expectations. S & P/Case-Shiller Home Price index for October rose 5.2% in October, greater than the 4.9% gain in September.

European markets climbed 1%-2%.

AT HOME

Benchmark indices ended marginally higher after a choppy trade. Sensex settled at 26079, up 45 points while Nifty added 4 points to finish at 7929. BSE mid-cap index gained 0.4% but the small-cap index lost 0.1%. BSE Telecom and Auto indices gained 0.7% and 0.6% respectively, becoming top gainers among the sectoral indices while Realty and Capital Goods indices lost the most, down 0.9% and 0.5% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 8 cr, 699 cr and 3 cr respectively. DIIs were net buyers to the tune of Rs 6 cr.

Rupee depreciated 20 paise to end at 66.39/$.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

We have been working with an upside target of 7980 after Nifty managed to cross the 7850 hurdle.

After Monday's upmove, yesterday was a day of consolidation as the benchmark, after a choppy trade, managed to end marginally higher at 7929.

7980, the top made in early December, continues to be upside target to eye. Immediate support on the hourly chart continues to be at 7850, which should serve as the stop loss for trading longs. Some profit booking is advised around 7980.

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