CRUDE PLUNGES TO FOUR-YEAR LOW; NIFTY REBOUNDS FROM 8430 SUPPORT

CRUDE PLUNGES TO FOUR-YEAR LOW; NIFTY REBOUNDS FROM 8430 SUPPORT

WORLD MARKETS

US indices ended flat yesterday amidst falling crude and mixed economic data.

Conference Board's index of consumer confidence declined to 88.7 in November from 94.1 the prior month, and the Commerce Department reported GDP climbed at a 3.9% annualized rate in July-September quarter, up from an initial 3.5% estimate. Another report had a gauge of home prices in 20 cities climbing at a reduced pace in September.

Energy stocks were hit by oil prices falling to a four-year low two day ahead of an OPEC meeting. This came after Talks between Saudi Arabia, fellow OPEC member Venezuela and oil powers Russia and Mexico failed to find an agreement to address a growing oil glut yesterday, with no side saying they would lower output despite a collapse in prices. Nymex crude plunged $1.7 to $74.1 a barrel. Brent oil fell $1.4 to $78.3.

European markets ended with gains of upto 0.8% with DAX leading the tally after Germany confirmed its economy grew 0.1% in the third quarter from the second.

AT HOME

After a flattish start, benchmark indices saw a sustained downward move through the session to end lower by about two third of a percent. Sensex slipped 161 points to settle at 28338 while Nifty finished at 8463, down 67 points. BSE mid-cap and small-cap indices plunged 1.4% and 2.3% respectively. Except at 0.6% and 0.2% rise in BSE Oil & Gas and Healthcare indices respectively, all other sectoral indices ended in red with Realty and FMCG indices leading the tally, giving away 3.4% and 2.5% respectively.

FIIs net bought stocks worth Rs 1169 cr but net sold index futures and stock futures worth Rs 639 cr and 307 cr respectively. DIIs were net sellers to the tune of Rs 732 cr.

Rupee appreciated 7 paise to close at 61.87/$.

ITC plunged after the reports that the health ministry has accepted recommendations of an expert panel to ban sale of loose cigarettes and increasing the minimum age for buying cigarettes and other tobacco products from 18 to 21.

OUTLOOK

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

In yesterday's report we had mentioned that immediate support on the hourly chart has moved up to 8430 with the stop loss of which trading longs should be held on to. Nifty, after touching a low of 8430, bounced back fo end at 8463.

8430 continues to be immediate support on the hourly chart below which a trendline adjoining recent bottoms on daily chart presents a support around 8385. This makes 8430-8385 an important support area, a breach of which can take Nifty to around 8200.