Dear
Trader…
The benchmark S&P BSE Sensex gained 1.59 points to settle
at 81,510, while the broader Nifty Future index closed at 24,682, lower by 12 points
or 0.04%.
The heavyweight IT index rose the most by 0.8%, making up for
losses from the more domestically focussed smallcaps and midcaps stocks.
IT majors Infosys and LTIMindtree gained over 2% each after
HSBC upgraded the two firms and named them its top picks in the sector.
The U.S. inflation data, due on Wednesday, will likely shape
the U.S. Federal Reserve’s interest rate trajectory, impacting foreign inflows
into emerging markets such as India.
Meanwhile, India’s CPI data, due on Thursday, is expected to
have eased in November.
Global
Markets – Among global equities, MSCI’s world share index
was down 0.15% on Tuesday, with Europe’s broad Stoxx 600 index off 0.3%, taking
cues from tech-led declines on Wall Street rather than building on
stimulus-fueled gains in China.
State media outlet Xinhua reported on Monday that top
Communist Party officials had shifted the monetary policy stance from
“prudent” to “moderately loose” ahead of the target-setting
Central Economic Work conference this week, mirroring their response in
previous crises.
Chinese bluechips stocks rose 0.7% on Tuesday. The stocks in
Japan and Korea were also higher, the latter up 2.4% helped by authorities’
vowing measures to stabilise markets in a bid to calm investors spooked by
political turmoil.
Forex
– The Indian rupee dropped to a record low of
84.8525 versus the U.S. dollar on Tuesday after the government named Sanjay
Malhotra as the next governor of the Reserve Bank of India, prompting traders
to ramp up bets on rate cuts next year.
Meanwhile, the dollar index, which gauges the greenback’s
strength against a basket of six currencies, was trading higher by 0.13 per
cent at 106.28.
Crude
Oil – Oil prices skidded lower on Tuesday as worries
eased about the fallout from the overthrow of Syria’s president, despite
support from China’s plan to ramp up policy stimulus – a potential boost to
demand from the world’s biggest crude buyer. Brent crude futures fell 24
cents to $71.90 per barrel at 1009 GMT.
On December 9, Foreign institutional investors (FIIs) turned
net buyers as they bought shares worth Rs 724 crore, while domestic
institutional investors sold equities worth Rs 1,648 crore on the same day.
Nifty futures opened at 24709 points against the previous
close of 24694 and opened at a low 24595 points. Nifty Future closed with an
average movement of 174 points and Decline of around 12 points and closed 24682
points…!!
Meanwhile,
Despite the consolidation, the continued buoyancy
in midcap and smallcap stocks is encouraging. Additionally, rotational
participation across most sectors is sustaining the positive sentiment during
this phase. Traders should maintain a stock-specific approach.
Technically, the
important key resistances are placed in Nifty future are at 24682 levels, which
could offer for the market on the higher side. stainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 24808 – 24880 levels. Immediate support is placed at 24474 –
24373 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory. Investment
in securities market are subject to market risks. Read Disclaimer and related
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
