NIFTY SET TO ACHIEVE 8130 TARGET; TRAIL STOP-LOSS TO 8000

NIFTY SET TO ACHIEVE 8130 TARGET; TRAIL STOP-LOSS TO 8000

WORLD MARKETS                             

US indices ended marginally lower

The U.S. announced sanctions against Russian individuals and organizations it believes interfered with the 2016 U.S. election.

On the data front, jobless claims declined by 10,000 to 265,000, This marks the 95th straight week that claims were below 300,000, a threshold associated with a healthy labor market. The trade deficit for goods widened by $3.4 billion in November to $65.3 bn.

Yields on most U.S. Treasuries hit nearly two-week. Dollar index fell about half a percent to 102.65.

WTI oil fell 29 cents to $53.77 while Brent was down 8 cents at $56.14 a barrel.

European markets, except a 0.2% higher FTSE, lost 0.2% each. Credit Suisse fell 3.5% on reports that that U.S. authorities were investigating the sale of a bond to Mozambique, which instead of being used for tuna fishing has reportedly been used to buy military equipment. In Italy, economy minister Pier Carlo Padoan said that the recapitalization of Monte dei Paschi will start in two to three months.

AT HOME

After trading in a narrow range in the first half, Sensex and Nifty saw a sharp surge in later half to end with gains of 0.6% and 0.9% respectively. Sensex added 155 points to settle at 26366 while Nifty finished at 8104, up 69 points. BSE mid-cap and small-cap indices soared 1.2% and 1.1% respectively. Except a marginally lower Capital Goods index, all the BSE sectoral indices closed in green with Consumer Durable and Oil & Gas indices leading the tally, up 1.7% and 1.6% respectively.

FIIs net sold stock worth Rs 662 cr but net bought index futures and stock futures worth Rs 703 cr and 471 cr respectively. DIIs were net buyers to the tune of Rs 958 cr.

Rupee appreciated 14 paise to end at 68.10/$.

OUTLOOK

Today morning, except a half a percent lower Nikkei, other Asian markets are trading with gains of 0.2%-0.8% and SGX Nifty is suggesting about 25 points higher start for our market.

Readers would recall that despite a steep fall on Wednesday we had reiterated our positive bias and 8130 target for Nifty and had advised holding on to long positions with the stop-loss of 7980.

Yesterday, the benchmark, after touching a low of 8020, rebounded smartly to end at 8104 and a higher start today would achieve the target of 8130, vindicating our view.

In yesterday's trade, Nifty has generated breakout from a "Cup & Handle" formation on the hourly chart. The immediate target of this formation comes to 8180. Above 8180, 8275, the top made in December, would be the next major target as well as hurdle to eye.

Immediate support on the hourly chart has moved up to 8000, with the stop-loss of which trading longs should be held on to.

7980 IS THE IMMEDIATE SUPPORT; 8130 IMMEDIATE HURDLE

7980 IS THE IMMEDIATE SUPPORT; 8130 IMMEDIATE HURDLE

WORLD MARKETS                             

US indices fell 0.6%-0.9%

National Association of Realtors Home Sales Index fell 2.5% in November from October.

Treasury yields fell, with the 10-year yield at 2.51% and the 2-year yield around 1.26%. Dollar index rose 0.2% to 103.22.

US oil rose 16 cents to $54.06 per barrel. Brent added 13 cents to $56.22. Data from API after Wednesday's close showed 4.2 million barrel build in US crude oil stocks as against expectation of a 2.1 million barrels decline.

In Europe, FTSE added 0.5%, DAX and CAC ended flat while Italy fell 0.8%.

AT HOME

After rising about eight tenth of percent, benchmark indices gave away all the gains in the late noon plunge to end flat. Sensex settled at 26211, down 3 points while Nifty added 2 points to finish at 8035. BSE mid-cap and small-cap indices gained 0.5% and 0.9% respectively. BSE Healthcare and Telecom indices added 0.8% and 0.7% respectively to become top gainers among the sectoral indices while Energy and Oil & Gas indices were the top losers, down 0.3% each.

FIIs net sold stocks worth Rs 527 cr but net bought index futures and stock futures worth Rs 1628 cr and 819 cr respectively. DIIs were net buyers to the tune of Rs 825 cr.

Rupee depreciated 16 paise to end at 68.23/$, the weakest finish since December 1.

OUTLOOK

Today morning Asian markets are trading with cuts of 0.2%-1.2% and SGX Nifty is suggesting a marginally lower start for our market.

In yesterday's report we had mentioned that a crossover of 8045, the top made Tuesday, would confirm a buy on the hourly chart and next target to eye in that case would be 8130, the 61.8% retracement level of the recent 8275-7894 fall.

The benchmark crossed 8045 mark in the initial trade itself and surged all the way to 8100, but slipped sharply from there to end at 8035.

8130 continues to be immediate upside target to eye. Immediate support on the hourly chart is placed at 7980, with the stop-loss of which trading longs can be held on to.

NIFTY REBOUNDS FROM 7900 SUPPORT

NIFTY REBOUNDS FROM 7900 SUPPORT

WORLD MARKETS                             

US indices gained 0.1%-0.4% yesterday with the Nasdaq composite setting a closing record.

Consumer confidence for December came in at 113.7, its highest since August 2001 and up from an upwardly revised 109.4 read in November. The Richmond Fed current conditions manufacturing index rose to 8 points this month from 4 points in November. The Dallas Fed manufacturing index rose to 13.8 points in December from 8.8 in November. S&P/Case-Shiller U.S. National Home Price Index rose 5.6% in October from the previous year, extending a new high from the previous month.

WTI crude rose 1.7% to $53.90 a barrel. The first output cut deal between OPEC and non-OPEC producers in 15 years is set to take effect Sunday.

Dollar index was little changed. Gold gained $5 to $1139 an ounce.

European markets ended with modest gains.

China's National Bureau of Statistics said that profits earned by large industrial firms rose 14.5 percent in November from a year earlier, a big jump from a 9.8 percent increase in October, on the back of a strong rebound in raw material prices and a low base last year.

AT HOME

After a flattish start, benchmark indices saw a sustained northward move through the session to end with hefty gains of nearly a percent and half, registering the biggest percentage gain since 8th December, 2016. Sensex soared 406 points to settle at 26213 while Nifty finished at 8033, up 125 points. BSE mid-cap and small-cap indices rose 1.7% and 1.5% respectively. All the BSE sectoral indices ended higher with FMCG and Metal indices leading the tally, up 2.6% and 2.5% respectively.

FIIs net sold stocks and index futures worth Rs 712 cr and 445 cr respectively but net bought stock futures worth Rs 815 cr. DIIs were net buyers to the tune of Rs 1502 cr.

Rupee depreciated 33 paise to end at 68.07/$.

ITC soared on reports that the company has initiated an over 14-15% price hike for some of its cigarettes.

OUTLOOK

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

After achieving the 7916 target and holding on to 7900 support, Nifty yesterday bounced back sharply by gaining 125 points to settle at 8033.

A crossover of 8045, the top made yesterday, would confirm a buy on the hourly chart and next target to eye in that case would be 8130, which is the 61.8% retracement level of the recent 8275-7894 fall.

Traders can go long above 8045 keeping a stop-loss of 7980, which is the immediate support on the hourly chart.

NIFTY ACHIEVES 7916 TARGET; 8050 IS THE IMMEDIATE HURDLE

NIFTY ACHIEVES 7916 TARGET; 8050 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

US and European markets were shut yesterday for Christmas holiday.

US crude 0.1% to $53.02 for its highest close since July 2015 while Brent gained 0.2% to settle at $55.16 a barrel.

AT HOME

Last week of calendar 2016 began on a negative note as benchmark indices plunged nearly a percent to end at seven month low. Sensex settled at 25807, down 234 points while Nifty lost 78 points to finish at 7908. BSE mid-cap and small-cap indices nosedived 2.1% each. All the BSE sectoral indices ended in red with Realty and Metal indices leading the losses, down 3.6% and 2.8% respectively.

FIIs net sold stocks worth Rs 1095 cr but net bought index futures and stock futures worth Rs 98 cr and 75 cr respectively. DIIs were net buyers to the tune of Rs 1065 cr.

Rupee appreciated 8 paise to end at 67.74/$.

OUTLOOK

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

At the risk of repeating we had been working with the downside target of 7916 ever since Nifty broke the immediate previous bottom on daily chart placed at 8057. The benchmark touched a low of 7894 yesterday before closing at 7908, achieving the target mentioned above and vindicating our view.

As mentioned yesterday, 7900, the 50% retracement level of the entire 6825-8970 upmove, is the important immediate support to eye. If this level is breached decisively, next meaningful support will come only at 7650, which is the 61.8% retracement level of the aforementioned upmove.

Immediate hurdle on the hourly chart is placed at 8050, which should serve as the revised stop-loss for trading shorts.

7916-7900 IS THE CRUCIAL SUPPORT; 8080 IMMEDIATE HURDLE

7916-7900 IS THE CRUCIAL SUPPORT; 8080 IMMEDIATE HURDLE

WORLD MARKETS                             

US indices added 0.1%-0.3% on Friday ahead of Christmas holiday.

In economic news, consumer sentiment for December came in at 98.2, above the expected read of 98.0. New home sales rose 5.2% last month, more than expected.

The U.S. dollar fell marginally against a basket of currencies. U.S. Treasuries traded mixed, with the two-year note yield rising to 1.20% and the benchmark 10-year note yield slipping to 2.54%.

European markets, except a marginally lower DAX, ended with modest gains. Italy approved a state bailout for Banca Monte dei Paschi di Siena, the world's oldest bank and the country's third-largest lender.

Deutsche Bank rose 3.4% after it agreed to pay $7.2 billion to settle an investigation led by the U.S.'s Department of Justice into alleged mis-selling of mortgage securities (MBS).

For the week, US indices gained 0.3%-0.5% during the week, with the Dow extending the winning streak to seventh straight week. European markets too edged up, gaining 0.1%-0.8%. In Asia Nikkei managed to gain 0.1% but Hang Seng plunged 2% and Shanghai Composite was down 0.4%.

AT HOME

After falling about half a percent in the first hour, benchmark indices recouped all the losses and some more through rest of the session to end with modest gains, breaking seven-day losing streak. Sensex settled at 26041, up 61 points while Nifty added 7 points to finish at 7986. BSE mid-cap and small-cap indices lost 0.4% and 0.04% respectively. BSE Capital Goods and Consumer Durable indices added 0.9% and 0.8% respectively, becoming top gainers among the sectoral indices while Realty and Healthcare indices were the top losers, down 1.1% and 0.7% respectively.

FIIs net sold stocks and index futures worth Rs 1463 cr and 654 cr respectively but net bought stock futures worth Rs 10 cr. DIIs were net buyers to the tune of Rs 1615 cr.

Rupee appreciated 17 paise to end at 67.82/$.

The finance minister Arun Jaitley-headed GST council finalised the drafts of the two main supplementary legislations—the Central GST Bill and the State GST Bill—in its meeting on Friday, although the issue of "dual control" to divide assessing powers between the Centre and the states continues to remain unresolved.  The council will again meet during January 3-4, to hammer out an agreement on the issue of dual control or "cross-empowerment”.

Cipla surged after its flagship product Sereflo received final approval from the UK health regulator.

For the week, Sensex and Nifty lost 1.7% and 1.9% respectively, extending the losing streak to second straight week and closing at the lowest level since the week ended 20th May 2016.

Addressing a gathering on Friday, Prime Minister Modi said, "Those who profit from financial markets must make a fair contribution to nation-building through taxes". This raised concerns that capital gains on long term profits might be brought in the upcoming budget. Finance Minster Jaitley however later clarified that "This interpretation is absolutely erroneous; the Prime Minister has made no such statement directly or indirectly,".

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 50 points lower start for our market.

Readers would recall that we have been negative on Nifty ever since 20-DMA support of 8120 was taken out. We were working with an initial target of 8057, which was the bottom made in early December, below which we had said that the benchmark could retest 7916 bottom made in November.

Nifty on Friday touched a low of 7942, coming in very close to 7916 target, before closing at 7986.

7916-7900 continues to be important downside support to eye. As we have been mentioning 7900 is the 50% retracement level of the entire 6825-8970 upmove and upon a decisive breach of 7900, next meaningful support will come only around 7650, which is the 61.8% retracement level of of the aforementioned upmove.

Immediate hurdle on the hourly chart has moved lower to 8080, with the stop-loss of which trading shorts should be held on to.

U.S. markets will be closed today in observance of the Christmas holiday.

NIFTY MOVES CLOSER TO 7916 BOTTOM; 8100 IS THE IMMEDIATE HURDLE

NIFTY MOVES CLOSER TO 7916 BOTTOM; 8100 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

US indices fell 0.1%-0.4% yesterday, digesting a mixed bag of economic data.

The final read on third-quarter U.S. GDP came in at 3.5%, above the expected 3.2% and fastest in two years. Durable goods orders for November fell 4.6%, less than expected. Initial jobless claims jumped to a six-month high of 275,000 last week, as against expectation of 256,000. Personal income remained flat in November while consumer spending increased modestly.

Trump named Peter Navarro, a well-known China critic, to lead the newly created White House National Trade Council, reinforcing his tough stance on China.

US oil rose 0.9% to $52.95 per barrel and Brent rose 1.1% to $55.05

U.S. Treasurys fell, with the benchmark 10-year note yielding 2.55% and the short-term two-year note yield trading at 1.18%. Dollar index was little changed.

In Europe, FTSE gained 0.3%, CAC was flat while DAX and Italy lost 0.1% and 0.5% respectively. the Italian government approved a $20.8 billion bailout for Monte dei Paschi, one of Italy's largest lenders and the oldest bank in the world. News about the rescue fund came a day after the bank said it could run out of cash in around four months.

AT HOME

Benchmark indices plunged a percent yesterday, extending the losing streak to seventh straight day and closing at the lowest level since 24th November. Sensex lost 263 points to settle at 25980 while Nifty finished at 7979, down 82 points. BSE mid-cap and small-cap indices fell 1.5% and 1.2% respectively. All the BSE sectoral indices ended in red with Metal and Basic Materials indices leading the tally, down 2.8% and 2.1% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 614 cr, 787 cr and 266 cr respectively. DIIs were net buyers to the tune of Rs 320 cr.

Rupee depreciated 8 paise to end at 67.99/$.

The Goods & Services Tax (GST) Council yesterday approved structure of Central Goods & Services Tax (CGST) and State Goods & Services Tax (SGST) laws. The discussions on IGST and Compensation Law will be taken up today.

OUTLOOK

Japanese markets will be shut for the Emperor's birthday

Other Asian markets are trading with cuts of upto 0.6% and SGX Nifty is suggesting about 15 points lower start for our market.

Readers would recall that after Nifty broke the 20-DMA support of 8057, we were working with downside target of 8057 and had also said that a breach of 8057 would open up the possibility of retest of 7916 bottom.

Nifty yesterday plunged all the way to 7965 before closing at 7979, moving towards 7916 target.

7916 continues to be major support to eye. As we had mentioned in our previous interactions, 7900 is the 50% retracement level of the entire 6825-8970 upmove and if this level is breached decisively, next meaningful support will come around 7650, which is the 61.8% retracement level of the aforementioned upmove.

Immediate resistance on the hourly chart has moved lower to 8100, with the stop-loss of which trading shorts can be held on to.

NIFTY ACHIEVES 8057 TARGET; TRAIL STOP-LOSS TO 8125

NIFTY ACHIEVES 8057 TARGET; TRAIL STOP-LOSS TO 8125

WORLD MARKETS                             

US indices fell about a fifth of a percent yesterday with Dow failing to reach 20000 mark.

Existing home sales for November hit 5.61 million units, and weekly mortgage applications rose 2.5%.

U.S. Treasuries rose, with the short-term two-year note yielding near 1.2% and the benchmark 10-year note yield around 2.55%. Dollar index eased 0.3%.

US oil fell 1.5% to $52.49 a barrel and Brent fell 1.6% to $54.46 a barrel after Libya said it would boost production in the coming months, and a U.S. Energy Information Administration (EIA) report showed a rise of 2.3 million barrels in U.S. crude stockpiles.

European markets, except a marginally higher DAX, ended with cuts of upto 0.4% amid concerns over the stability of the region's banks. Earlier, Monte dei Paschi di Siena — Italy's third-largest lender — said it could run out of cash in four months, much faster than the originally forecast 11 months.

AT HOME

After holding on to modest gains for better part of the day, benchmark indices nosedived in last hour or so to end lower by a fourth of a percent, extending the losing streak to sixth straight day. Sensex settled at 26242, down 66 points while Nifty lost 21 points to finish at 8061. BSE mid-cap index lost 0.2% while small-cap index managed to gain 0.03%. BSE FMCG index tumbled 1%, becoming top loser among the sectoral indices, followed by 0.75% cut in IT and Teck indices. Realty index climbed 1.5%, becoming top gainer, followed by 0.7% rise in Consumer Durable index.

FIIs net sold stocks and stock futures worth Rs 1178 cr and 300 cr respectively but net bought index futures worth Rs 51 cr. DIIs were net buyers to the tune of Rs 1058 cr.

Rupee appreciated 12 paise to end at 67.91/$.

OUTLOOK

Today morning, Asian markets are trading with modest cuts and SGX Nifty is suggesting about 15 points lower start for our market.

Readers would recall that after Nifty broke 20-DMA support of 8120, we were working with the downside target of 8057, where the immediate previous bottom made on 5th December was placed.

Nifty yesterday touched a low of 8053 before closing at 8061, achieving the target mentioned above and vindicating our view.

Next support on the way down comes around 8000, where the lower band of bollinger on the daily chart is placed below which 7916, the bottom made in November, would be the crucial support to eye.

Immediate resistance on the hourly chart has moved lower to 8125, with the stop-loss of which trading shorts can be held on to.

NIFTY NEARLY ACHIEVES 8057 TARGET; 8160 IS THE IMMEDIATE HURDLE

NIFTY NEARLY ACHIEVES 8057 TARGET; 8160 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

US indices gained 0.4%-0.5% with the Dow hitting a new record close.

Equities shrugged off geopolitical concerns where on Monday, the Russian ambassador to Turkey died after being shot by a gunman at an art gallery in the Turkish capital and in Berlin, a truck ploughed into a crowded Christmas market, killing 12 and injuring 48.

However, U.S. Treasuries resumed their sell-off after a slight uptick following these events, with the benchmark 10-year note yield rising to 2.5597% and the short-term two-year note yielding 1.2326%. The dollar index touched a fresh 14-year high of 103.65 before closing at 103.25.

US oil rose 0.2% to $52.23 per barrel and Brent rose 0.8% to $55.49 after data showed U.S. crude stockpiles fell by 4.1 million barrels last week, compared to expectation of a decrease of 2.5 million.

European markets added 0.4%-1.5%.

AT HOME

Benchmark indices fell about a fourth of a percent, extending the losing streak to fifth straight day. Sensex settled at 26308, down 67 points while Nifty lost 22 points to finish at 8082. BSE mid-cap and small-cap indices tumbled 1.4% and 0.9% respectively. BSE Telecom index and Bankex were the top losers among the sectoral indices, giving away 1.3% each. IT and Teck indices added 1% and 0.8% to become top gainers.

FIIs net sold stocks and stock futures worth Rs 686 cr and 942 cr respectively but net bought index futures worth Rs 188 cr. DIIs were net buyers to the tune of Rs 419 cr.

Rupee depreciated 17 paise to end at 68.03/$

OUTLOOK

Today morning Asian markets are trading with gains of upto 0.4% and SGX Nifty is suggesting a marginally higher start.

Readers would recall that After Nifty broke the 20-DMA support of 8120, we were working with downside target of 8057, which was the immediate previous bottom on the daily chart made on 5th December.

Nifty yesterday touched a low of 8063, nearly achieving the target mentioned above and recovered from there to close at 8082.

8057 continues to be important immediate support to eye upon breach of which 7916, the bottom made in November, would be the next downside target to eye.

Immediate hurdle on the hourly chart is placed around 8160, a crossover of which is required to generate a "buy" on the hourly chart.

8057 IS THE NEXT SUPPORT; 8170 IMMEDIATE HURDLE

8057 IS THE NEXT SUPPORT; 8170 IMMEDIATE HURDLE

WORLD MARKETS                             

US indices gained 0.2%-0.4% yesterday amidst a low-volume trade

Fed Chair Janet Yellen, at University of Baltimore commencement ceremony, said the U.S. has the strongest jobs market in nearly a decade, and there are indications wage growth is picking up.

The flash U.S. Markit PMI services for December was 53.4, down slightly from 54.6 in November.

Dollar index gained about 0.3% to end at 103.13. Treasury yields were lower, with the 2-year yield near 1.22% and the 10-year yield around 2.54%.

U.S. crude oil rose 22 cents, or 0.42%, to $52.12 a barrel. Gold added $5 to $1143 an ounce.

European markets ended mixed with modest changes. Basic resources were among the worst performers on news that Chinese authorities are foreseeing a lower growth rate in 2017. The German Ifo Institute raised its economic forecast for 2018 growth in the country to 1.7%, from a previous estimate of 1.6%.

The Turkish lira and Russian ruble fell to session lows against the dollar after the Russian ambassador to Turkey was shot by an off-duty police officer in Ankara.

AT HOME

After trading in a narrow range for better part of the day, benchmark indices slipped in last hour of trade to end lower by four tenth of a percent, extending the losing streak to fourth straight day. Sensex lost 115 points to settle at 26375 while Nifty finished at 8104, down 35 points. BSE mid-cap and small-cap indices fell half a percent each. Except a 0.5% and 0.4% rise in BSE Energy and Utilities indices respectively, all the BSE sectoral indices ended in red with Telecom and Consumer Durable indices leading the tally, down 1.4% and 1.2% respectively.

FIIs net sold stocks and stock futures worth Rs 536 cr and 663 cr respectively but net bought index futures worth Rs 327 cr. DIIs were net buyers to the tune of Rs 556 cr.

Rupee depreciated 10 paise to end at 67.87/$.

OUTLOOK

Today morning Asian markets are trading flat to modestly lower and SGX Nifty is suggesting a flattish start for our market.

After holding on to 20-DMA support placed at 8120 last week, Nifty broke it yesterday and touched a low of 8095 before closing at 8104.

As mentioned yesterday, 8057, the immediate previous bottom on the daily chart made on 5th December, continues to be next important support to eye. A breach of 8057 would open up the possibility of the retest of 7916 bottom made in November.

Immediate resistance on the hourly chart has moved up to 8170, with the stop-loss of which trading shorts can be held on to.

8120-8230 CONTINUES TO BE IMMEDIATE RANGE

8120-8230 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices ended with cuts of upto 0.4% on Friday following geopolitical tension in the South China Sea.

Media reports suggested that a Chinese Navy warship has seized an underwater drone deployed by an American oceanographic vessel in international waters in the South China Sea, triggering a formal diplomatic protest from the United States and a demand for its return.

Following the news, U.S. Treasury yields edged lower, gold prices climbed, and the yen strengthened against the dollar in a safe-haven trade. US 10-year yield fell from about 2.62% to 2.56%. Dollar index eased to 102.80 from 103.10. Gold rose $8 to $1135 an ounce.

U.S. crude oil futures settled up $1.00 at $51.90 a barrel after Goldman Sachs raised its price forecast for 2017 and producers showed signs of keeping to the global deal to cut production levels. The weekly U.S. oil rig count rose 12 from last week to 510, according to Baker Hughes.

Richmond Fed President Jeffrey Lacker said the Fed will need more than three rate hikes in 2017.St. Louis Fed President James Bullard said that after the election, the economy has more upside risk, while it will take a while for the new political landscape to alter the outlook.

In economic data, Housing starts fell a more-than-expected 18.7% in November to a seasonally adjusted annual rate of 1.09 million units. Building permits declined 4.7%.

European markets added 0.1%-0.7%. Basic resources ended the trading day among the worst performing European sectors after Chinese iron ore futures dropped more than 2% on Friday as steel prices lost ground in afternoon trading, with steel mills holding off on buying the raw material in the physical market after recent rapid gains. The German Ifo Institute raised its economic forecast for 2018 growth in the country to 1.7%, from a previous estimate of 1.6%.

For the week, Dow rose 0.4%, extending the winning streak to sixth straight week. S & P 500 and Nasdaq however lost 0.1% each. European markets added 0.8%-1.8%. In Asia, Nikkei added 2.1%, rising for the sixth straight week but Shanghai and Hang Seng tumbled 3.4% and 3.2% respectively.

                                                             

AT HOME

Benchmark indices ended modestly lower after a rangebound session, extending the losing streak to third straight day. Sensex lost 30 points to settle at 26490 while Nifty finished at 8139, down 14 points. BE mid-cap and small-cap indices lost 0.04% and 0.25% respectively. BSE Metal and Telecom indices tumbled 1.6% and 1.2% respectively, becoming top losers among the sectoral indices while Consumer Durable and IT indices gained 0.6% each, becoming top gainers.

FIIs net sold stocks, index futures and stock futures worth Rs 90 cr, 504 cr and 149 cr respectively. DIIs were net buyers to the tune of Rs 30 cr.

Rupee appreciated 7 paise to end at 67.76/$.

For the week, Sensex and Nifty lost 1% and 1.5% respectively.

Oil marketing companies hiked petrol and diesel prices by Rs 2.21 and 1.79 per litre on Friday.

OUTLOOK

Japan's November exports fell 0.4% y-o-y, compared to expectation of a 2% decline, boosted by a weaker yen and recovery in overseas demand. Imports fell 8.8%, also better than the forecast of a 12.6% decline. The trade surplus stood at 153 billion yen ($1.3 billion), narrower than a surplus of ¥227 billion expected.

Asian markets are trading with cuts of 0.3%-0.7% and SGX Nifty is suggesting about 15 points lower start for our market.

After today's lower start, Nifty would be back in the vicinity of 8120 bottom made last week, where it had found a floor in the form of 20-DMA. If this level is taken out, 8057, the bottom made on 5th December, which is also the immediate previous bottom on the daily chart, would be the next downside target to eye.

8230, where Nifty was resisted twice last week, is the immediate hurdle on the way up, upon which 8275, the top in the December so far, would be the next resistance.

This makes 8120-8230 immediate range, a breach of which, on either side, is required for taking fresh directional view.

8120-8230 IS THE IMMEDIATE RANGE

8120-8230 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

US indices gained 0.3%-0.4% but closed off the day high, digesting a slew of economic data and the Federal Reserve's decision to raise interest rates.

Dollar index extend post Fed decision rally, rising 1.3% to 103.1. US Trasury yields too extended gains, with the benchmark 10-year note yield hovering around 2.606% while the two-year note yield traded around 1.2758%. Gold plunged $34 to $1130 per ounce, a near 11-month low.

CPI (Consumer Price Index) rose 0.2% in November, in line with expectations. Weekly jobless claims came in at 254,000. The Philadelphia Fed business index rose 21.5 in December, versus a November read of 7.6, while the Empire State manufacturing index rose to 9.0 in December from 1.5 in November. December manufacturing PMI came in at 54.2, marginally above November's 54.1. The NAHB homebuilder sentiment index rose 7 points to 70, easily beating expectations.

US oil settled 0.3% lower at $50.90 per barrel while Brent rose 0.2% to $54.02.

European markets climbed 0.7%-2.1%. Auto stocks moved higher on data showing a 1.28% increase year-on-year in new car registrations in Europe. The Bank of England held interest rates, as widely expected, and forecast that the U.K. should overshoot its 2% inflation target as early as late 2017.

AT HOME

Benchmark indices ended lower by about a third of a percent after a roller coaster session, extending the losing streak to second straight day. Sensex lost 84 points to settle at 26519 while Nifty finished at 8154, down 29 points. However, BSE mid-cap index ended flat while small-cap index gained 0.2%. BSE Healthcare index tumbled 1.4%, becoming top loser among the sectoral indices, followed by 0.9% cut in Telecom index. IT index and Bankex added 0.6% and 0.3% respectively, becoming top gainers.

FIIs net sold stocks, index futures and stock futures worth Rs 612 cr, 1520 cr and 264 cr respectively. DIIs were net sellers to the tune of Rs 177 cr.

Rupee depreciated 40 paise to end at 67.83/$.

India's exports rose for the third straight month in November, recording a growth of 2.3% at $20 bn. However, imports rose at a faster pace of 10.4% to USD 33 bn, leaving a two-year high trade deficit of USD 13 bn.

OUTLOOK

Today morning Nikkei is up about 0.7%, other Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a marginally lower start for our market.

In yesterday's report we had said that 8120, where 20-DMA is placed, is the next support to eye, upon breach of which, next support will come at 8057, which the immediate previous bottom on the daily chart made in early December. We had also said that 8230, the top made on Wednesday, is the immediate hurdle to eye.

The benchmark, after touching a low of 8122, rebounded sharply to touch a high of 8226, but slipped again to end at 8154.

8120-8230 continues to be immediate range to eye, a crossover of which, on either side is required for taking a fresh directional view.

US BOND YIELDS, DOLLAR SURGE ON HAWKISH FED; NIFTY SET TO BREAK 8150 SUPPORT

US BOND YIELDS, DOLLAR SURGE ON HAWKISH FED; NIFTY SET TO BREAK 8150 SUPPORT

WORLD MARKETS                             

US indices fell 0.5%-0.8% yesterday, digesting the Federal Reserve's first interest rate rise this year and its hawkish rate outlook for 2017.

The Fed, as widely expected, raised rates by 25 basis points on Wednesday, its second rate increases in a decade. It also said it saw three rate hikes in 2017, higher than two hikes projected back in September, due to improving economic conditions. In a news conference following the Fed's announcement, Chair Janet Yellen said President-elect Donald Trump's plans to stimulate the economy with government spending figured into the central bank's expectations for three rate hikes next year.

U.S. Treasuries gave up gains following the announcement, with the two-year note yield rising to 1.2673% and the benchmark 10-year yield advancing to 2.5525%. Dollar index surged 1.1% to 102.20, hitting a 14-year high. Gold fell 1.2% to $1143 an ounce, a ten-month low.

US crude fell 3.7% to $51.04 per barrel. Brent slipped 3.3% to $53.80.

In economic news, the Producer Price Index rose 0.4% in November, above the expected 0.1% increase. November retail sales rose less than expected as households cut back on purchases of motor vehicles. Industrial production fell 0.4%. Business inventories posted their largest decline in 11 months, falling 0.2%.

European markets fell 0.3%-1.2%. Eurozone industrial production fell 0.1% in October, though the numbers were up by 0.6% on the year. Moody's updated its outlook on Italian banks from "stable" to "negative" on Tuesday on increasing capital needs and a weakening in confidence in the system.

AT HOME

Sensex and Nifty ended lower by 0.4% and 0.5% respectively after a choppy trade. Sensex lost 95 points to settle at 26603 while Nifty finished at 8182, down 39 points. BSE mid-cap and small-cap indices tumbled 0.8% each. Except a 0.6% and 0.5% rise in IT and Realty indices respectively, all the BSE sectoral indices ended in red with Metal and Telecom indices leading the losses, down 1.7% and 1.2% respectively.

FIIs net sold stocks and index futures worth Rs 632 cr and 80 cr respectively but net bought stock futures worth Rs 112 cr. DIIs were net buyers to the tune of Rs 211 cr.

Rupee appreciated 11 paise to end at 67.43/$.

Coal India plunged after the company reported 77% dip in consolidated net profit for the September quarter on account of higher costs.

OUTLOOK

Today morning, except a 0.3% higher Nikkei, other Asian market are trading with cuts of 0.2%-0.9% and SGX Nifty is suggesting about 35 points lower start for our market.

After today's negative start, Nifty will be back in the vicinity of 8150 which has been the support for last couple of days. Also you have got 20-DMA around 8120. This makes 8150-8120 an immediate support area. Below 8120, next support will come at 8057, the immediate previous bottom on the daily chart made in early December.

Meanwhile 8230, the top made yesterday, would act as the immediate hurdle.

Traders can initiate short positions once Nifty breaks the low made in first hour, keeping a stop-loss of 8230.