NIFTY FAILS TO CLOSE ABOVE 8275; 8200 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY FAILS TO CLOSE ABOVE 8275; 8200 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices gained 0.3%-0.6% on Friday, digesting December employment report with technology stocks leading the gains. All three indices hit fresh record highs.

The U.S. economy added 156,000 jobs in December, lower than the estimated 178,000 figure. The unemployment rate came in at 4.7%, in line with expectations. Average hourly wages rose 10 cents to $26, representing a 2.9% annualized gain. November factory orders fell 2.4%, more than expected.

Dollar index rose 0.7%. Treasury prices fell, with the 10-year note yield rising to 2.418% and the two-year note yield climbing to 1.218%.  Gold fell 0.7% to $1172 per ounce.

European markets added upto 0.3%. Retail sales in the euro zone dropped 0.4% month-on-month in November. The year-on-year figure increased 2.3% from a revised 3% rate in October. The economic confidence index jumped to 107.8 in December from a revised figure of 106.6 in November.

For the week, US indices gained between 1% to 2.6% and scaled fresh record highs. Main European markets rose 1% each. In Asia, Hang Seng climbed 2.3%, Nikkei rose 1.8% and Shanghai was up 1.6%.

AT HOME

After gaining about four tenth of a percent in the initial trade, benchmark indices saw a sustained downward move through the session to end lower by four tenth of a percent. Sensex lost 119 points to settle at 26759 while Nifty lost 30 points to finish at 8244. BSE mid-cap and small-cap indices fell 0.3% and 0.4% respectively. BSE IT and Teck indices tumbled 2.5% and 2.2% respectively to become top losers among the sectoral indices while Bankex and Finance indices were the top gainers, up 0.9% and 0.6% respectively.

FIIs net sold stocks worth Rs 255 cr but net bought index futures and stock futures worth Rs 510 cr and 169 cr respectively. DIIs were net buyers to the tune of Rs 165 cr.

Rupee ended unchanged at 67.96/$.

For the week, Sensex and Nifty gained 0.5% and 0.7% respectively, extending the winning streak to second consecutive week.

IT stocks tumbled after The Protect and Grow American Jobs Act "was reintroduced on Thursday in the US parliament. The act proposes to raise the minimum salary of H1B visa aspirants to USD 1 lakh per annum from the current USD 60,000. Besides, the proposed US immigration reforms seeks to make a Masters degree mandatory for H1B visa holders.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points higher start for our market.

While Nifty achieved the big 8275 target on Thursday, it failed to decisively take it out and close above it. On Friday, after touching a high of 8307, the benchmark slipped to end at 8244.

Remember, 8275 is the top made in December and also coincides with the 200 DMA.

Once 8275 is taken out decisively, 8400-8450, the region where 20 as well as 34-week moving averages are placed, would be the next target area to eye.

Meanwhile, immediate support on the hourly chart has moved up to 8200, with the stop-loss of which trading longs can be held on to.