12375 IS NEXT TARGET/RESISTANCE; 12155 CONTINUES TO BE IMMEDIATE SUPPORT

12375 IS NEXT TARGET/RESISTANCE; 12155 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.1%-0.3% to hit fresh-record highs, cheering the news that China will cut import tariffs on a wide range of goods.

China’s finance ministry announced starting January 1, it will lower import tariffs on over 850 products ranging from frozen pork to some types of semiconductors.

New home sales in November totaled 719,000, 13,000 less than expected. Durable goods orders rose 0.1% last month, in line with estimates but down 1.1% from the same month a year ago.

In Europe, FTSE and CAC rose 0.5% and 0.1% respectively while DAX fell 0.1%.

AT HOME

After falling about half a percent, benchmark indices recouped most of the losses in last half an hour to end just marginally lower, nevertheless breaking four-day winning streak. Sensex settled at 41642, down 38 points while Nifty lost 9 points to finish at 12262. BSE mid-cap and small-cap indices fell 0.1% each. BSE Energy and Realty indices slipped 1.3% and 0.6% respectively, becoming top Nifty losers while Auto and Teck indices were the top gainers, up 0.5% and 0.4% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1463 cr, 612 cr and 804 cr respectively. DIIs were net sellers to the tune of Rs 1947 cr.

Rupee depreciated 5 paise to end at 71.17/$.

OUTLOOK

Today morning, Asian markets are trading near flat line and SGX Nifty too is suggesting a flattish start.

Readers would recall that we had turned our view on Nifty positive after 11980 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

After the benchmark achieved 12158 target, we have been working with next target zone of 12350-12400 and had advised trailing stop-loss to 12155 in yesterday's report.

Yesterday, Nifty, after touching a low of 12213, rebounded to close at 12262 and is set to open flat today.

12375, where an upward sloping trendline adjoining tops made in September and November is placed, continues to be next major upside target/resistance zone to eye.

12155 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.