NIFTY RETREATS FROM 7860 HURDLE

NIFTY RETREATS FROM 7860 HURDLE

WORLD MARKETS                             

Dow and Nasdaq ended marginally higher while S & P 500 lost 0.2% as some encouraging earnings reports offset pressure from declines in oil prices and continued geopolitical concerns.

Home Depot and Wal-Mart surged on good quarterly results.

Nymex oil fell $1.07 or 2.6% to $40.67 a barrel.

In economic news, the consumer price index rose 0.2% in October, matching estimates. Core CPI, which takes out food and energy costs, also gained 0.2%. Home builder confidence fell more than expected to 62 in November. Industrial production for October showed a second-straight month of decline with a 0.2% drop, missing expectations for a slight rise.

During the afternoon U.S. trading session, two stadiums in Germany were evacuated at short notice due to the serious threat of an attack.

Gold fell $15 to $1069 an ounce.

European markets soared 2%-2.8%. Auto stocks gained after data showed European auto sales rose 2.7% y-o-y in October, the 26th straight month of growth. Greece reached an agreement with its lenders on financial reforms, removing a major obstacle holding up fresh bailout loans for the cash-starved country.

AT HOME

Benchmark indices ended higher by about four tenth of a percent after a choppy session. Sensex rose 104 points to settle at 25864 while Nifty ended at 7838, up 31 points. BSE mid-cap and small-cap indices gained 0.3% and 0.5% respectively. BSE FMCG index climbed 2.2%, becoming top gainer among the sectoral indices, followed by 1% gain in Metal index. Consumer Durable and IT indices were the top losers, down 0.4% and 0.3% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 492 cr, 139 cr and 181 cr respectively. DIIs were net buyers to the tune of Rs 783 cr.

Rupee depreciated 3 paise to end at 66.0225/$.

Infosys fell 2%, after the company, in a conference call on Monday, warned investors of weaker margins in second half of current fiscal.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 25 points lower opening for our market.

In yesterday's report we had mentioned that 7860 is the immediate hurdle on the hourly chart, a crossover of which is required for the further upmove.

The benchmark, after exactly touching a high of 7860, reversed to end at 7838.

7860 continues to be immediate hurdle, a sustained trading above which is required for the further upmove. 8060, where the 34-DMA is placed, would be the next upside target after crossover of 7860.

On the way down, 7690, the bottom made in late September, is the immediate support, upon breach of which 7540, the bottom made in early September, would be the next downside target.