NIFTY AGAIN RESISTED AT 7850; 7700 CONTINUES TO BE SUPPORT

NIFTY AGAIN RESISTED AT 7850; 7700 CONTINUES TO BE SUPPORT

WORLD MARKETS                             

US indices gained 0.6%-1% yesterday, helped by some stabilization in oil prices and recovery in beaten down sectors. All 10 sectors of S & P 500 gained with consumer staples, energy, industrials and materials gaining more than 1%.

The final read on third-quarter GDP came in at an annualized rate of 2%, down slightly from the second estimate of 2.1% but above the advance estimate of 1.5%. Existing home sales declined 10.5% in November, far greater than expected. The Richmond Fed manufacturing index for December was 6, up from a minus 3 read last month and minus 1 in October.

Nymex oil rose 33 cents or 0.92% to $36.14 a barrel. Brent settled down 24 cents or 0.66% to $36.11 a barrel.

European markets ended mixed.

AT HOME

After rebounding more than half a percent from the opening weakness, benchmark indices sold-off in the late noon trade to end lower by six-tenth of a percent. Sensex settled at 25591, down 145 points while Nifty lost 48 points to finish at 7786. BSE mid-cap and small-cap indices lost 0.3% and 0.02% respectively. BSE IT and Metal indices lost 1.2% and 1% respectively, becoming top losers among the sectoral indices while Consumer Durable and Telecom indices gained 0.8% and 0.7% respectively.

FIIs net bought stocks and stock futures worth Rs 168 cr and 42 cr respectively but net sold index futures worth Rs 175 cr. DIIs were net buyers to the tune of Rs 238 cr.

Rupee appreciated 3 paise to end at 66.32/$.

India's current account deficit (CAD), or the difference in the value of goods and services exported and imported, widened from USD 6.2 billion in the first quarter (1.2%t of gross domestic product) of the fiscal year to USD 8.2 billion (1.6% of GDP) in the second. In the second quarter last year, it stood at USD 10.9 billion (2.2% of GDP).

OUTLOOK

Today morning Asian markets are trading with gains in the vicinity of half a percent and SGX Nifty is suggesting about 40 points higher opening for our market.

For last two sessions we have maintained the view that 7850-7700 is the immediate range, a breach of which, on either side, is required for taking a fresh view on Nifty.

Yesterday, the benchmark, after touching a high of 7846, slipped to end at 7786 and is set to open higher today.

7850, continues to be immediate hurdle, a sustained trading above which will open up the space for the further upside till about 7980, the top made in early December. 7700 continues to be immediate support, a breach of which would open up the possibility of the retest of 7550 bottom.