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Market Update

Nifty : 25,938.85 -3.25 (-0.01%)

Sensex : 84,675.08 -20.46 (-0.02%)

* The equity benchmark Nifty ended the session on a flat note as investors remained cautious ahead of the release of the FOMC meeting minutes later today. The index saw a partial recovery in the final hour, supported by short covering and year-end fund rebalancing-related buying. Banking, auto, and metal stocks outperformed during the session, while pharma and IT stocks faced profit booking.

* Nifty closed unchanged at 25,938 after touching an intra-day low of 25,878. For the December expiry, the index declined nearly 260 points, or 1%.

* In global markets, Asian and European indices traded subdued as investors awaited cues from the US Federal Reserve’s meeting minutes, while developments around Ukraine peace talks also remained in focus.

* The PSU Bank index jumped 2% after the RBI indicated that banks’ bad loans have fallen to a decade-low of 2.1%. Stocks such as IOB, Bank of Maharashtra, Indian Bank, and Central Bank advanced between 2% and 6%.

* Auto stocks witnessed fresh buying ahead of the December monthly sales data release scheduled for January 1. Metal stocks also gained momentum, supported by rising metal prices. Shares of Hindustan Copper, National Aluminium, SAIL, Jindal Stainless, and NMDC rallied between 3% and 9%.

Technical Outlook:

* Nifty index opened flattish and after slipping below 25900 zones, it made attempts of recovery above 25950 levels. It failed to hold at higher zones and witnessed a tug of war between the bulls and bears within a range of 100 points for the entire session and finally closed near its opening levels. It formed a doji sort of a candle on the daily frame with longer lower shadow indicating support based buying but has been making lower highs – lower lows from the last three sessions which is signaling lack of follow up buying. Now it has to cross and hold above 26000 zones for strength to regain towards 26150 and 26250 zones while supports can be seen at 25850 then 25700 zones.

* S&P BSE Sensex index on a flattish note and traded within a range of 300 points between 84500 to 84800 for the entire session. Momentum remained subdued for most part of the day, with neither of the sides able to assert clear control. On the daily chart it formed a small bodied candle, reflecting a clear tug of war between bulls and bears. While Sensex continues to hold above its 50 DEMA, the sequence of lower lows is intact. Now it has to cross and hold above 84800 zone for an upside move towards 85000 then 85300 while hold below the same can see weakness towards 84400 and then 84100 zones

Derivative Outlook:

* Nifty future closed negative with losses of 0.08% at 25937 levels. Positive setup seen in National Aluminium, NMDC, Shriram Finance, Hindalco, UPL, Ashok Leyland, Vedanta, LTF, M&M and Indian Bank while weakness in Mazdock, INOX Wind, CDSL, BSE, Kaynes, IEX, Indigo, HAL, CG Power and SBI Card.

* On option front, Maximum Call OI is at 26000 then 26300 strike while Maximum Put OI is at 26000 then 25900 strike. Call writing is seen at 26000 then 26300 strike while Put writing is seen at 25900 then 26000 strike. Option data suggests a broader trading range in between 25500 to 26300 zones while an immediate range between 25700 to 26100 levels.

Global Market Update

* European Market - European stocks were subdued on Tuesday as investors awaited the minutes of the Federal Reserve’s last meeting, while focus remained on Ukraine peace negotiations.

* Asian Market - Asian equities edged lower, snapping a seven-day winning streak, as losses in Taiwan offset gains in Hong Kong. Taiwan, Japan and South Korea Index marginally decline.

* US Data - FOMC Minutes Meetings.

* Commodity - Oil held a gain as traders weighed geopolitical tensions from Venezuela to Russia and Iran against concerns about a glut. Brent steadied n

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