12080, 12030 ARE DOWNSIDE SUPPORTS; 12240 IS IMMEDIATE HURDLE

12080, 12030 ARE DOWNSIDE SUPPORTS; 12240 IS IMMEDIATE HURDLE

WORLD MARKETS

US indices gained 0.4%-0.8% to hit fresh record highs. Nasdaq topped the 9,000 mark for the first time ever.

Amazon jumped more than 4% after the e-commerce giant said the holiday shopping season broke all records

U.S. weekly jobless claims decreased 13,000 to a seasonally adjusted 222,000 for the week ended Dec. 21, slightly higher than estimates of 220,000.

In a regular press briefing yesterday, the Chinese Commerce Ministry said China is in close touch with the U.S. on signing the initial trade pact

Brent gained 71 cents, or 1%, to trade at $67.91 while WTI gained 57 cents, or 0.93%, to settle at $61.88 per barrel.

European markets continued to remain shut.

AT HOME

Benchmark indices slipped seven tenth of a percent, extending the losing streak to third straight day. Sensex lost 297 points to settle at 41163 while Nifty finished at 12126, down 88 points. BSE mid-cap index fell 0.1% while small-cap index rose 0.4%.  BSE Telecom and Energy indices tumbled 1.7% and 1.5% respectively, becoming top losers among the sectoral indices while Metal and Basic Material indices were the top gainers, up 0.7% and 0.3% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 504 cr, 1083 cr and 275 cr respectively. DIIs were net buyers to the tune of Rs 120 cr.

Rupee depreciated 4 paise to end at 71.31/$.

OUTLOOK

Today morning, Nikkei is little changed while Hang Seng and Shanghai are up 0.3% and 1% respectively. SGX Nifty is suggesting about 25 points higher start for our market.

Readers would recall that we had turn our view on Nifty positive ever since 11980 hurdle was taken out and had been asking holding on to long positions with a trailing stop-loss.

After the benchmark hit a high of 12293, we had advised trailing the stop-loss to 12155.

The benchmark yesterday broke this support and made a low of 12118 before closing at 12126.

20-DMA, placed around 12080, is the next downside support. If that gives way, 34-DMA, placed around 12030, would be the crucial support to eye.

12240 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.