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.