Dear
Trader…
The benchmark S&P BSE Sensex slipped 236 points or 0.29%
to settle at 81,289, while the broader Nifty Future index closed at 24,648,
lower by 86 points or 0.35%.
IT companies, which earn a major portion of their revenues
from the US, closed 0.8% higher. An in-line US inflation data guaranteed a
Federal Reserve rate cut next week, enhancing the outlook for these firms’
dollar-dominated revenues.
IT major Tech Mahindra was one of the top five Nifty gainers,
closing 1.2% higher, along with Adani Enterprises and Bharti Airtel, which
gained 1.9% and 1.5%, respectively.
Except for the IT and metal indices, all other sectors
witnessed declines, with energy stocks down 0.8% and public sector banks losing
0.8%.
India’s inflation reading and industrial output data after
the market close would be crucial factors in deciding the market sentiment
given the concerns over slowing economic growth. Inflation in India likely
eased in November, according to a Reuters poll.
Global
Markets – Global shares were mixed Thursday ahead of a
decision by the European Central Bank on interest rates that was anticipated to
yield at least a quarter percentage point cut to the current 3.25% benchmark.
Chinese shares ended higher as the country’s leaders met in
Beijing to set economic plans and targets for the coming year. The shares in
Hong Kong jumped 1.2% and the Shanghai Composite index added 0.9%.
Shares in Tokyo advanced 1.2%, led by buying of technology
shares, while South Korea’s Kospi gained 1.6%.
The Indian rupee tumbled to an all-time low on Thursday,
weighed down by a lingering depreciation bias and heightened demand for the US
dollar in the non-deliverable forwards (NDF) market. The rupee hit a low of
84.88 against the dollar before closing at 84.8575.
Meanwhile, the dollar index, which gauges the greenback’s
strength against a basket of six currencies, was trading marginally lower by
0.16% at 106.22.
Oil prices were little changed on Thursday as forecasts of
weak demand and a higher-than-expected rise in US gasoline and distillate
inventories placed a lid on gains from an additional round of EU sanctions
threatening Russian oil flows.
Brent crude futures, the global benchmark, were up 31 cents
at $73.83 a barrel at 0815 GMT.
On December 11, foreign institutional investors (FIIs) sold
equities of Rs 1,012.2 crore worth, while domestic institutional investors
bought equities worth Rs 2,007.85 crore on the same day.
Nifty futures opened at 24721 points against the previous
close of 24734 and opened at a low 24628 points. Nifty Future closed with an
average movement of 169 points and Decline of around 86 points and closed 24648
points…!!
Meanwhile,
The market continued to remain range-bound ahead
of domestic CPI data and weakening rupee.
Though inflation is anticipated to drop, investors are
maintaining a close vigil on the vegetable prices, which will determine the
future rate trajectory. Meanwhile, the Nifty IT index reached a new high after
US inflation data met expectations, boosting hopes for a Fed rate cut next week.
Technically, the
important key resistances are placed in Nifty future are at 24648 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 24676 – 24808 levels. Immediate support is placed at 24474 –
24303 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
