8154-8300 IS THE IMMEDIATE RANGE

8154-8300 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

While Dow gained 0.2%, S & P 500 and Nasdaq fell 0.1% and 0.6% yesterday ahead of the beginning of a two-day fed meeting.

US 10-year note yield rose to 2.477%, after hitting its highest level since 2014. The two-year note yield advanced to 1.145%. Dollar index fell 0.6% to 100.92.

WTI oil gained 2.6% to settle at $52.83 per barrel, the highest since 2015.

In Europe FTSE plunged 1% while DAX and CAC lost 0.1% each. Italy and Spain however rose 0.4% and 0.2% respectively.

AT HOME

After a gap down opening, Sensex and Nifty kept on moving lower through the session to end with cuts of 0.9% and 1.1% respectively. Sensex lost 232 points to settle at 26515 while Nifty finished at 8171, down 91 points. BSE mid-cap and small-cap indices fell 1.1% and 0.7% respectively. All the BSE sectoral indices ended in red with Auto index and Bankex leading the tally, down 1.7% each.

FIIs net sold stocks, index futures and stock futures worth Rs 94 cr, 61 cr and 842 cr respectively. DIIs were net sellers to the tune of Rs 266 cr.

Currency market was shut today for Id-e-Milad.

OUTLOOK

Today morning Asian markets are trading flat to modestly lower and SGX Nifty is suggesting about 15 points higher start for our market.

In yesterday's report we had mentioned that 34-DMA as well as the upper band of bollinger on daily chart, both are placed around 8300 and hence 8300 would be the important immediate resistance to eye. We had also said that 8160 is the immediate support, a sustained trading below which will generate a sell on the hourly chart and would pave the way for the further correction.

The benchmark tumbled to 8154 yesterday but managed to recover a bit and close at 8171

A breach of 8154, the low made yesterday, would confirm a sell on the hourly chart and next target to eye in that case would be about 8057, the bottom made in early December.

Traders are advised to keep a stop-loss of 8154 in long positions.

India's November CPI will be released today and is expected to slow down to 3.88% from 4.2% in October. Core CPI however is expected to remain flat at 5% v/s 4.9%.

Cola India will report its September quarter earnings today.

The Fed's policymaking committee is set to begin a two-day meeting on Tuesday, where the U.S. central bank is largely expected to raise interest rates by 25 basis points.