7450 CONTINUES TO BE NEXT SUPPORT; 7700 IMMEDIATE HURDLE

7450 CONTINUES TO BE NEXT SUPPORT; 7700 IMMEDIATE HURDLE

WORLD MARKETS                             

While Dow and S & P 500 ended 0.3% and 0.1% higher, Nasdaq lost 0.1% yesterday.

Nymex oil plunged $1.75 or 5.3% lower at $31.41 a barrel while Brent fell $1.99 to $31.56 a barrel, touching new 12-year low. Copper traded more than 2% lower to fall below $1.97 and hit its lowest since April 2009.

European markets lost upto 0.7%.

People's Bank of China raised the midpoint fix for the yuan against the U.S. dollar to 6.5626. However, the Shanghai composite lost more than 5% yesterday, while the Hang Seng closed more than 2.5% lower.

AT HOME

After a gap down opening of nearly a percent and half, benchmark indices recouped about two third of the losses through the session to end lower by about half a percent. Sensex lost 109 points to settle at 24825 while Nifty finished at 7564, down 37 points. BSE mid-cap and small-cap indices lost 1% and 0.5% respectively. BSE Healthcare and IT indices lost 1.4% and 1.1% respectively, becoming top losers among the sectoral indices while Utilities and Realty indices gained 0.3% and 0.2% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1319 cr, 319 cr and 613 cr respectively. DIIs were net buyers to the tune of Rs 901 cr.

Rupee depreciated 18 paise to end at 66.81/$.

OUTLOOK

Today morning, Nikkei, which was shut yesterday, has opened down by about a percent and half. Other Asian markets are modestly higher and SGX Nifty is suggesting about 15 points lower opening for our market.

In yesterday's report we had mentioned that upon breach of 7540, next support to eye would be 7450, where the lower band of monthly bollinger is placed.

The benchmark, after touching a low of 7494 in the initial trade, recovered through the day to end at 7564.

7700 continues to be immediate hurdle on the hourly chart, a crossover of which is required to negate the immediate bearish stance. 7450 continues to be next support to eye, upon breach of which 34-month average, placed at 7350 would be the crucial support.

TCS and Inudsind Bank will report their quarterly earnings today. TCS is expected to report 0.7% q-o-q growth in dollar revenue at 4185 mn. Rupee profit is expected to fall 0.8% q-o-q to Rs 6005 cr while revenue is seen up 1.5% at Rs 27165 cr.

November IIP data will be released today and is expected to show a reading of 1.81% as against 9.8% in October. Dec CPI is expected to come in at 5.5%, up from 5.41% in November. Core CPI is seen at 4.76% as against 4.6%.