10425 CONTINUES TO BE IMMEDIATE SUPPORT; 10670 ABOVE 10552

10425 CONTINUES TO BE IMMEDIATE SUPPORT; 10670 ABOVE 10552

WORLD MARKETS                             

US indices gained 0.2%-0.3%.

In economic news, the advance trade deficit in goods increased to $69.7 billion in November from $68.1 billion in October. Weekly jobless claims came in at 245,000 versus expectations of 240,000.

The Chicago PMI for December rose to 67.6, its highest since March 2011.

U.S. dollar index fell to 92.67/$, its lowest since late November. The 2-year Treasury yield was little changed, near 1.91%, just off nine-year highs, while the 10-year yield traded mildly higher around 2.43%.

WTI crude rose nearly half a percent to $59.91 while Brent ended higher by 28 cents at $66.72. Copper rose more than 1% to its highest level in nearly four years.

European markets, except a flat FTSE, fell 0.4%-0.7%.

AT HOME

Benchmark indices ended with modest cut after a choppy session on the expiry day of the December derivative contracts. Sensex lost 64 points to settle at 33848 while Nifty finished at 10478, down 13 points. BSE mid-cap and small-cap indices however gained 0.1% and 0.3% respectively. BSE Realty and Metal indices soared 3% and 2% respectively, becoming top gainers among sectoral indices while Oil & Gas and Auto indices were the top losers, down 0.5% and 0.4% respectively.

FIIs net bought stocks and index futures worth Rs 563 cr and 1621 cr respectively but net sold stock futures worth Rs 1476 cr. DIIs were net sellers to the tune of Rs 774 cr.

Rupee appreciated 8 paise to end at 64.08/$.

For the December derivative series, Nifty gained 2.4%.

In a major step towards a simpler securities market trading infrastructure, regulator Securities and Exchange Board of India (SEBI) yesterday announced much-awaited integration of stocks and commodities trading on a single exchange from October next year. The regulator also decided to relax entry norms for foreign portfolio investors (FPIs) willing to invest in the Indian markets. Also, SEBI would allow listing of security receipts issued by an asset reconstruction company (ARC) on stock exchange platform. It however deferred decision on norms for loan default disclosure by listed firms.

OUTLOOK

Today morning, Asian markets are trading with modest gains and SGX Nifty is suggesting a flattish start for our market.

Yesterday, a last half an hour sell-off made Nifty close 13 points lower at 10478. 10425 continues to be immediate support, a breach of which would genearate a sell on the hourly chart and would pave the way for further correction. 34-DMA, placed around 10300, would be the next downside target if that happens.

10552, the top made on Tuesday, is the immediate hurdle above which 10670 would be the next target to eye.

Traders are advised to hold long positions with the stop-loss of 10425.