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.