8275 IS THE HURDLE; 8080 IMMEDIATE SUPPORT

8275 IS THE HURDLE; 8080 IMMEDIATE SUPPORT

WORLD MARKETS                             

US markets were shut yesterday for the New Year holiday.

European markets gained 0.4%-1.7%. The final reading of the Euro zone December manufacturing purchasing manager's index stood at 54.9, the fastest growing pace in more than five years.

AT HOME

After falling nearly two-third of a percent in the morning trade, benchmark indices recouped most of the losses in afternoon pullback to end marginally lower. Sensex settled at 26595, down 31 points while Nifty lost 6 points to finish at 8180. BSE mid-cap and small-cap indices gained 0.8% and 1.2% respectively. BSE Realty index soared 4.3%, becoming top gainer among the sectoral indices, followed by 2.2% rise in Basic Material index. Bankex and Finance indices were the top losers, giving away 1.2% and 1% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 261 cr, 461 cr and 167 cr respectively. DIIs were net buyers to the tune of Rs 21 cr.

Rupee depreciated 30 paise to end at 68.22/$.

India's core sector growth slowed to 4.9% in November from 6.6% in October.

India's Nikkei/Markit Manufacturing Purchasing Managers' Index fell to 49.6 in December from November's 52.3, its first reading below the 50 mark that separates growth from contraction since December 2015.

Bajaj Auto reported 22% y-o-y fall in December sales at 2.25 lakh units. M & M's auto sales were down 4% at 36363 units but tractor sales were up 9% at 14047 units. SML Isuzu sold 1021 units, a growth of 16.4%. Escorts tractor sales were up 15.8% at 3187 units. Tata Motors total sales are up 2% at 40944 units. TVS Motor sales dipped 8.5% to 1.84 lakh units. Hero Moto reported 35% fall at 3.39 lakh units.

OUTLOOK

China's December Caixin manufacturing PMI has come in at 51.9, up from 50.9 in previous month and marking the highest level since January 2013.

Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a modestly lower start for our market.

At the risk of repeating, we have been advising on to long positions ever since Nifty crossed the immediate hurdle of 8050. The benchmark on Friday achieved the 8180 target and now is approaching major hurdle of 8275, which is the top made in December and also coincides with the 200-DMA.

Immediate support on the hourly chart has moved up to 8080 with the stop-loss of which trading longs can be held onto.