NIFTY MOVES TOWARDS 8275 HURDLE; TRAIL STOP-LOSS TO 8130

NIFTY MOVES TOWARDS 8275 HURDLE; TRAIL STOP-LOSS TO 8130

WORLD MARKETS                             

US markets gained 0.6%-0.8% but closed off the day high as oil prices reversed.

WTI crude, after gaining more than 2% and hitting an 18-month high of $55.22 amid hopes that a deal struck between OPEC and non-OPEC countries to cut production will reduce excess supply, reversed and settled 2.6% lower at $52.33 as concerns that Libya will increase production dampened investor sentiment.

US dollar index, after rising nearly a percent to touch a fresh 14-year high of 103.82, eased to end at 103.21. US treasuries fell with the benchmark 10-year note yields rising to 2.45% and the short-term two-year note yield trading at 1.222%. Gold rose $10 to $1162 per ounce.

The final read on December IHS Markit manufacturing PMI came in at 54.3, hitting a 21-month high. The ISM manufacturing index read for December came in at 54.7, above November's read of 53.2. Construction spending hit its highest level in more than 10 years in November.

European markets, except a 0.1% lower DAX, gained upto 0.8%. Inflation levels in Germany climbed to its highest level in over three and a half years at 1.7%. French consumer inflation came in at 0.8%, its highest level since May 2014. U.K. manufacturing PMI increased to 56.1 in December, the highest reading since June 2014.

Earlier a Shanghai Composite rose 1% after China's Caixin December Manufacturing Purchasing Managers' index rose to 51.9, compared with 50.9 in November and beating forecasts for 50.7.

AT HOME

After falling about four tenth of a percent in the initial trade, benchmark indices reversed and gained about half a percent from the bottom of the day to end higher by about a fifth of a percent. Sensex settled at 26643, up 48 points while Nifty added 13 points to finish at 8192. BSE mid-cap and small-cap indices rose 0.6% and 1% respectively. BSE Consumer Durable and Oil & Gas indices were the top gainers among the sectoral indices, putting on 3% and 2% respectively whereas Telecom index tumbled 1.6%, becoming top loser, followed by 0.2% cut in Auto index.

FIIs net sold stocks and index futures worth Rs 500 cr and 42 cr respectively but net bought stock futures worth Rs 625 cr. DIIs were net buyers to the tune of Rs 562 cr.

Rupee depreciated 10 paise to end at 68.33/$.

On the first day of the fresh meeting of GST Council, states demanded extra compensation to offset tax revenue losses in wake of demonatisation. Fresh roadblocks also emerged on products moving in high seas, with coastal states demanding taxation rights over goods transported within 12 nautical miles of their respective geographical territories.

Telecom stocks tumbled after Bharti Airtel announced another special offer under which it will give free data for 12 months worth up to ₹9,000, to customers who switch to Airtel 4G.

OUTLOOK

Nikkei has opened after a long weekend today with a gain of nearly 2%, other Asian markets are trading with modest gains and SGX Nifty is suggesting about 10 points higher start for our market.

After Nifty achieved 8180 target, we have been working with next target of 8275, which is the top made in December and also coincides with the 200 DMA.

The benchmark touched a high of 8219 before closing at 8192, moving towards the 8275 hurdle.

Immediate support on the hourly chart has now moved up to 8130, which should serve as the fresh stop-loss for trading longs.