7730-7750 IS THE IMMEDIATE RESISTANCE AREA

7730-7750 IS THE IMMEDIATE RESISTANCE AREA

WORLD MARKETS                             

US indices gained 0.2%-0.5% yesterday, shrugging-off pressure from further decline in oil prices as beaten-down sectors such as energy rebounded.

Nymex oil fell 40 cents or 1.1% to $36.76 a barrel after OPEC said its November production reached a 2009 high. OPEC published its latest monthly oil market report on yesterday, in which its forecast said that the supply of oil from countries outside of the OPEC will contract next year as world oil demand rises.

Weekly jobless claims rose to 282000, coming in higher than the expected 269000. Import prices fell 0.4% in November, as oil prices weighed.

Dollar index rose about half a percent with the euro holding above $1.09. Gold fell $4.50 to $1072 an ounce.

European markets, except a marginally higher DAX, lost upto 0.6%.

AT HOME

Benchmark indices soared nine tenth of a percent yesterday, breaking six-day losing streak. Sensex settled at 25252, up 216 points while Nifty rose 71 points to end at 7683. BSE mid-cap and small-cap indices gained 0.9% and 1.2% respectively. All the BSE sectoral indices ended in green with Energy and Oil & Gas indices leading the tally, up 2.4% and 1.9% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 580 cr, 120 cr and 203 cr respectively. DIIs were net buyers to the tune of Rs 411 cr.

Rupee appreciated 12 paise to end at 66.71/$.

OUTLOOK

Today morning, Nikkei is up nearly a percent but Shanghai and Hang Seng are down nearly half a percent. SGX Nifty is suggesting a marginally lower start for our market.

Yesterday, after touching a low of 7610 in the morning trade, Nifty rebounded smartly to end at 7683.

The trend however continues to be negative. The region in the vicinity of 7730, which was earlier acting as a support, would now act as the immediate hurdle. 7750 is where the 38.2% retracement level of the recent 7979-7606 fall is placed. This makes 7730-7750 immediate resistance area, a sustained trading above which is required for the further upmove.

On the way down, 7540 continues to be the downside target to eye.

IIP for October would be released today. The expected range for the figure is as wide as 4.5%-10.8%. In September, IIP growth stood at 3.6%.