BRENT OIL HITS 11 YEAR LOW; 7700-7850 CONTINUES TO BE IMMEDIATE RANGE FOR NIFTY

BRENT OIL HITS 11 YEAR LOW; 7700-7850 CONTINUES TO BE IMMEDIATE RANGE FOR NIFTY

WORLD MARKETS                             

US indices gained 0.7%-0.9% yesterday. Goldman Sachs contributed the most to gains, while Chevron and Exxon Mobil were among the few decliners.

Chicago Fed National Activity Index showed a decline to minus 0.30 in November from minus 0.17 in October.

Nymex oil settled up 1 cent at $34.74 a barrel after earlier dipping below $34 to hit a fresh near-seven-year low. Brent settled higher at $36.35 a barrel, after hitting $36.04 a barrel, its lowest since July 2004. Natural gas bounced from near multi-year lows to settle up 8.2% for its largest one-day gain since Oct. 27. Gold rose $16 to $1081 an ounce.

European markets fell 0.3%-3.6% with Spain leading the losses after the ruling People's Party fell short of majority in the election held on Sunday.

AT HOME

After a negative start, benchmark indices saw a sustained northward move though the session to end higher by about nine tenth of a percent. Sensex settled at 25736, up 217 points while Nifty gained 72 points to finish at 7834. BSE mid-cap and small-cap indices rose 0.6% and 0.8% respectively. Except a 0.6% and 0.4% cut in BSE Consumer Durable and Healthcare indices respectively, all the sectoral indices ended in green with Metal index and Bankex leading the tally, rising 1.5% and 1.4% respectively.

FIIs net bought stocks and index futures worth Rs 37 cr and 53 cr respectively but net sold stock futures worth Rs 394 cr. DIIs were net buyers to the tune of Rs 63 cr.

Rupee appreciated 5 paise to end at 66.35/$.

Sun Pharma plunged 4.3% after the USFDA issued a warning letter to the company over violation of manufacturing norms in its facility at Halol in Gujarat.

OUTLOOK

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

As mentioned in yesterday's report 7690-7850 is the immediate range, a crossover of which is required for the fresh direction. 7850 was the 34-DMA where the benchmark got resisted on last Thursday. A crossover of this hurdle would open up the space for the further upside till about 7980, the top made in early December.

7690 is the immediate support on the hourly chart, a breach of which would open up the possibility of the retest of 7550 bottom made last week.