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Major headlines:

·         NMDC to set up Nagarnar steel plant invest 1222 cr

·         Indian equities open marginally in red

·         Asia stocks find relief as China set to return seized U.S drone

Indian Indices:  Asian markets opened weak as overnight US markets again saw huge profit booking emerge closer to 20000 as most people doubled the speed of the rally. The US$ also saw profit booking in Asian trade as energy stocks saw profit booking after a steady rally.

Nifty saw another lacklustre session with index drifting towards 8100 on low volumes. The markets lack direction or news as nearness to year end is seeing foreign investors in slowdown mode awaiting corporate results due mid January. For today expect another flat opening as the markets get oversold with a downward  bias but less downward momentum. 

The BSE Sensex is currently trading at 26449.25, down by 40.31 points or 0.15% after trading in a range of 26369.28 and 26505.66. There were 11 stocks advancing against 19 stocks declining on the index. The broader indices were trading in red; the BSE Mid cap index was down by 0.04%, while Small cap index was down by 0.04%.

The CNX Nifty is currently trading at 8125.10, down by 14.35 points or 0.18% after trading in a range of 8105.35 and 8128.60. There were 21 stocks advancing against 30 stocks declining on the index.

Technical view: Nifty finds support around 8100 with 8050 likely to be tested on the downside while 8250 acts as strong resistance. Bank Nifty also finds support around 18143 & then 17900 with 18600 acting as strong resistance.

Market Sentiment:

The market breadth on BSE was positive in the ratio of 1036:974, while 117 scrips remained unchanged.

Trading ideas :    ICICIBANK Dec Fut (Sell below Rs 256 for Target of Rs 248, SL at Rs 260): The stock overall trend being down, it is facing selling pressure on every bonce. Two consecutive attempts to get past its 50-DMA and sustain above the same failed. In last weeks trade, stock made a classical bearish flag pattern breakdown, and it may see selling pressure to continue in coming trading sessions. We advise to SELL ICICI Bank Dec Fut below Rs 256, stop loss at Rs 260, and Target of Rs 248.

Macroeconomic Front:    A report by HSBC has said that as economic and political headwinds slow global trade in commodities and manufactured goods, opportunities linked to services will be more and are expected to form 25 per cent of global trade in a sustained manner by 2030.

Corporate Snippets: The exchange informed that effective from December 19, 2016, the equity shares of Laurus Labs Ltd (Scrip Code: 540222) are listed and admitted to dealings on the Exchange in the list of 'B' Group Securities.

Jai Corp Ltd is currently trading at Rs 70.7, up by Rs 5.3 or 8.1% from its previous closing of Rs 65.4 on the BSE. The Company's shares are up following the reports on opening of bids for construction of the Navi Mumbai International Airport. The bids are likely to open at the start of January 2017. 

The outlook for the US retail industry in the year ahead is stable, with operating income for the sector growing between 4.0% and 5.0%, and sales in the 3.0% to 4.0% range.

Top Sectoral& Stock Screening:  The top gaining sectoral indices on the BSE were Oil & Gas up by 1.50%, PSU up by 0.62%, Power up by 0.16%, Bankex up by 0.04% and Metal up by 0.03%, while TECK down by 0.40%, Consumer Durables down by 0.37%, IT down by 0.36%, Realty down by 0.33% and Capital Goods down by 0.19% were the losing indices on BSE.

Nifty Movers:   The top gainers on Nifty were Aurobindo Pharma up by 2.53%, GAIL India up by 2.46%, BPCL up by 1.27%, Tata Power up by 1.24% and Idea Cellular up by 1.05%. On the flip side, Adani Ports & Special Economic Zone down by 1.36%, Asian Paints down by 1.29%, Sun Pharma down by 1.15%, Bharti Infratel down by 1.10% and Dr. Reddy’s Lab down by 0.88% were the top losers.

On the global front:       On the global front, Asian shares were trading mostly on cautious note. There is easing worries about rising diplomatic tensions between the world’s two biggest economic powers after China agreed to return a US drone it had seized. A Chinese warship seized a US underwater drone in the South China Sea, which triggered a formal diplomatic protest and a demand for its return.

Global Signals:    The Asian markets were trading mostly in red; Hang Seng decreased 168.42 points or 0.76% to 21,852.33, Taiwan Weighted decreased 79.76 points or 0.86% to 9,247.02, Nikkei 225 decreased 11 points or 0.06% to 19,390.15, Jakarta Composite decreased 2.63 points or 0.05% to 5,229.02 and FTSE Bursa Malaysia KLCI decreased 2.54 points or 0.16% to 1,635.25.