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Major headlines:

·         Monetary policy panel to wait and watch impact of demonestisation.

·         Indian equity market indices open flat

·         Asian shares slilp in holiday thinned trade, focus turns to U.S data

Indian Indices:Asian indices opened flat to marginally weak as US indices also had a rather quiet session with the Dow Jones ending marginally in the red. Pullback in oil prices & yields edging lower were the theme for the day as US$ also saw profit booking. Emerging markets continue to be the favorite punching bag on both currency & equity front as investors exit seeking better opportunities in US equity & bonds.   

Nifty gave up all gains in last half hour & drifted towards 8050 as renewed bout of foreign selling emerged. Banks, IT &Fmcg saw huge profit booking with commodities & auto's seeing buying. For today weak sentiment could see 8000 being tested as year end repatriation by select foreign investors could continue this week.

The BSE Sensex is currently trading at 26060.42, down by 181.96 points or 0.69% after trading in a range of 26027.58 and 26248.45. There were 3 stocks advancing against 27 stocks declining on the index. The broader indices were trading in red; the BSE Mid cap index was down by 1.04%, while Small cap index was down by 0.93%. The CNX Nifty is currently trading at 7999.75, down by 61.55 points or 0.76% after trading in a range of 7991.50 and 8046.45. There were 9 stocks advancing against 42 stocks declining on the index.

Technical view: Nifty finds last bastion support around 8000 which if broken can see a test of 7916 while 8150 atcs as strong resistance, Bank Nifty also finds support around 17900 with 18350 now acting as resistance.

Market Sentiment:

The market breadth on BSE was negative in the ratio of 468:1585, while 99 scrips remained unchanged.

Trading ideas :DLF (Buy above Rs 118.5 for target of Rs 123.5, SL at Rs 116): Stock was moving in a very narrow trading band from the past six trading sessions between Rs 111.5 and Rs 114. In yesterday's trade, stock managed to close above the same, creating a bullish belt hold candlestick pattern on the daily charts. If stock sustains above Rs 118.5, it would result in a triangle breakout. We advise to Buy DLF above Rs 118.5, stop loss at Rs 116, and Target of Rs 123.5.

MacroeconomicFront:The RBI's December decision to hold its key interest rate at 6.25 per cent was based on the unanimous view of the Monetary Policy Committee to take a prudent "wait and watch" approach pending more information on the full effects of demonetisation and against the backdrop of volatility in financial markets provoked by the then imminent tightening of monetary policy in the US.

Corporate Snippets:BhartiAirtelsaid its subsidiary Network has entered into a definitive agreement with Egyptian firm Oracom to acquire the latter’s entire equity stake in Middle East North Africa Submarine Cable Systems for and undisclosed amount.

Titan Company inaugurated its revamped store in the upmarket Jubilee Hills area of the city bringing together their retail chains.

RBL Bank has reduced has too launched discount sale on domestic routes.

Texmaco Rail Engg and Kalindee Rail Nirman have received Delhi High Court’s approval to merge the latter with former, the companies notified the bources.

Top Sectoral& Stock Screening:  The losing sectoral indices on the BSE were Metal down by 1.68%, Capital Goods down by 1.06%, Power down by 1.03%, Bankex down by 0.98% and PSU down by 0.89%, while there were no gainers.

Nifty Movers:The top gainers on Nifty were Eicher Motors up by 0.64%, Zee Entertainment up by 0.58%, Hindustan Unilever up by 0.50%, BhartiInfratel up by 0.49% and Tata Motors up by 0.44%.  On the flip side, Hindalco down by 2.67%, Adani Ports & Special Economic Zone down by 2.08%, Tata Steel down by 1.93%, Bank of Baroda down by 1.84% and SBI down by 1.64% were the top losers.

On the global front:On the global front, Asian shares were trading in red, after a lacklustre performance on Wall Street, with investors looking to US economic data later in the day for potential catalysts even as markets started winding down ahead of the holidays. The market volumes began to thin out in the run-up to the Christmas holidays with many investors sitting on the sidelines. Many major markets in Asia will remain close on Monday (and a few on Tuesday as well) to observe Christmas.

Global Signals:The Asian markets were trading in red; Hang Seng decreased 197.89 points or 0.91% to 21,611.91, Taiwan Weighted decreased 70.91 points or 0.77% to 9,133.35, Nikkei 225 decreased 52.66 points or 0.27% to 19,391.83, Jakarta Composite decreased 18.08 points or 0.35% to 5,093.31, Shanghai Composite decreased 6.87 points or 0.22% to 3,130.56, KOSPI Index decreased 2.14 points or 0.11% to 2,035.82 and FTSE Bursa Malaysia KLCI decreased 2.09 points or 0.13% to 1,627.50.