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Major headlines:

·         Japan’s big manufacturers mood improves as companies cut capex

·         China November producer prices rise at fastest pace in 5 years as commodities climb.

·         Gold extend losses on stronger dollar, possible Fed rate hike

Indian Indices:  Asian markets opened flat after a super week which has seen gains across the board for most Asian indices. The developed markets are leading the winners with US, Japan & German indices seeing fresh new highs. Base Metals, Commodities & Bonds all three rising indicating the expectations of rising growth being the driver for equities in 2017.

Nifty scaled 8250 with ease as foreign buying coupled with short covering saw gains across the board. Rupee strength along with bond yields stabilising also saw sentiment get a boost as foreign buying resumed in December after the big selloff in November. For today expect mid caps to lead the gains as participation gathers momentum. 

The BSE Sensex is currently trading at 26765.17, up by 70.89 points or 0.27% after trading in a range of 26707.81 and 26803.26. There were 17 stocks advancing against 13 stocks declining on the index. The broader indices were trading in green; the BSE Mid cap index was up by 0.20%, while Small cap index was up by 0.60%. The CNX Nifty is currently trading at 8260.10, up by 13.25 points or 0.16% after trading in a range of 8241.95 and 8271.90. There were 28 stocks advancing against 23 stocks declining on the index.

Technical view:   Nifty will attempt 8300 with 8330 being a strong resistance while 8180 acts as strong support. Bank Nifty also finds support around 18350 while 18750 will act as resistance.

Market Sentiment:

The market breadth on BSE was positive in the ratio of 1470:603, while 103 scrips remained unchanged.

Trading ideas :     Coromandel Intl (Buy above Rs 272  for Target of Rs 285 , SL at Rs 266): The stock has been consolidating for over a month, during this phase Coromandel formed a cup and handle pattern which is bullish in nature. The stock rallied over 4% on Wednesday and is finally on the verge of breaking past the neckline of the bullish pattern. Trading volume has also shown credible uptick indicating strenght in the current up move. The projection of the structure suggests a conservative potential target of Rs285.

Macroeconomic Front:   The Indian Government has said that it has already infused funds to the tune of Rs 23,993 crore in the National flag carrier Air India from 2011-12 till November this year. As per reports, Air India is surviving on a Rs 30,231 crore bailout package extended by the previous UPA government in 2012 for a 10-year period and also equity support for payment of principal/interest of the non-convertible debentures.

Corporate Snippets:

Oil and Natural Gas Corporation is seeking a 15- year extention of its licence to operate an oil block in Sudan after the intial contract expired last month.

Cipla has received final approval from the American health regular to market Entecavir tablets used for treatment of Hepatitis B infection.

Bharti Airtel unveiled unlimited voice calls and more 4G data under a new plan, to take on rival Reliance Jio that recently extended its free services.

Top Sectoral& Stock Screening:  The top gaining sectoral indices on the BSE were IT up by 1.12%, TECK up by 0.89%, Consumer Durables up by 0.80%, FMCG up by 0.61% and PSU up by 0.40%, while Metal down by 0.21% and Auto down by 0.08% were the losing indices on BSE.

Nifty Movers:   The top gainers on Nifty were Zee Entertainment up by 2.20%, Bank of Baroda up by 1.86%, Tech Mahindra up by 1.74%, SBI up by 1.56% and Infosys up by 1.50%.  On the flip side, Bharti Infratel down by 2.26%, Bajaj Auto down by 1.93%, Coal India down by 1.39%, HDFC down by 1.29% and Bosch down by 1.18% were the top losers.

On the global front:       On the global front, Asian shares were trading mostly in red, while Japanese stocks rose to their highest level in a year supported by Wall Street gains and solid buying of exporters on the back of a weaker yen.

Global Signals:    The Asian markets were trading mostly in red; Hang Seng decreased 91.21 points or 0.4% to 22,770.63, Jakarta Composite decreased 14.58 points or 0.27% to 5,289.16, KOSPI Index decreased 6.15 points or 0.3% to 2,024.92 and FTSE Bursa Malaysia KLCI decreased 4.24 points or 0.26% to 1,639.51. On the other hand, Taiwan Weighted increased 5.94 points or 0.06% to 9,381.80, Shanghai Composite increased 25.12 points or 0.78% to 3,240.49 and Nikkei 225 increased 212.93 points or 1.13% to 18,978.40.