8030 CONTINUES TO BE IMMEDIATE SUPPORT; 8160-8185 IS THE RESISTANCE AREA

8030 CONTINUES TO BE IMMEDIATE SUPPORT; 8160-8185 IS THE RESISTANCE AREA
WORLD MARKETS                             
US indices gained 0.2%-1% with the Dow notching a new record closing high, shrugging off a key vote in Italy which led to Prime Minister Matteo Renzi’s resignation, as financials, technology and consumer discretionary stocks rose.
US November IHS Markit non-manufacturing index came in at 54.6, marking the ninth consecutive month in which the services sector has shown expansion. The November ISM services index read, meanwhile, came in at 57.2, above an October read of 54.8.
US oil rose 0.2% to $51.79 per barrel. Brent added 0.9% to $54.94.
European markets, except a 0.2% lower Italy, added 0.2%-1.6%. Italian Prime Minister Renzi announced he would step down after being defeated in a constitutional reform referendum, as voters showed a “clear” rejection of legislative reform measures.
The euro fell to $1.0503, a 20-month low during Asian trading but rebounded to hit a two-week high of 1.0796 against the dollar.
AT HOME
After falling about four tenth of a percent in the first half, benchmark indices climbed nearly nine tenth of a percent in the later half to end higher by about half a percent. Sensex added 118 points to settle at 26349 while Nifty finished at 8129, up 42 points. BSE mid-cap and small-cap indices gained 0.7% and 0.3% respectively. BSE Metal and Telecom indices added 1.5% each, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, giving away 0.7% and 0.4% respectively.
FIIs net sold stock, index futures and stock futures worth Rs 318 cr, 179 cr and 207 cr respectively. DIIs were net buyers to the tune of Rs 164 cr.
Rupee depreciated 2 paise to end at 68.21/$.
India’s Nikkei/Markit Services Purchasing Managers’ Index sank to 46.7 in November from October’s 54.5, the first time since June 2015 that the index has gone below the 50 mark that separates growth from contraction. It was also the biggest one-month drop since November 2008, just after the collapse of Lehman Brothers triggered the global financial crisis.
OUTLOOK
Today morning, Asian markets are trading with gains of 0.2%-1.2% and SGX Nifty is suggesting a flattish start for our market.
After Nifty broke the immediate support of 8120 on Friday, we were working with a downside target of 8030, where the trendline adjoining recent bottoms on the daily chart was placed. Yesterday, the benchmark, after touching a low of 8057, rebounded to close at 8129.
8160-8185, the gap created by the gap down opening on Friday, is the immediate resistance area to eye, a crossover of which would generate a “Buy” on the hourly chart and would pave the way for further upmove.
Traders are advised to keep a stop-loss of 8185 in short positions.

RBI begins its two-day policy meeting today. The apex bank is widely expected to cut repo rate by 25 bps at the least. A partial roll back of 100% CRR hike is also expected.
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