OIL PLUNGES TO LOWEST LEVEL SINCE MAY 2009; GOVERNMENT ON ORDINANCE SPREE

OIL PLUNGES TO LOWEST LEVEL SINCE MAY 2009; GOVERNMENT ON ORDINANCE SPREE
WORLD MARKETS
US indices ended mixed with modest changes amid fresh lows on oil prices and earlier pressure on European stocks from Greece’s failure to elect a president. Dow lost 0.1%, Nasdaq closed absolutely flat while S & P 500 rose 0.1%.
Nymex oil tumbled 2% to end at $53.61, the lowest since May 1, 2009. Brent gave away 2.6% to $58. Gold fell 1.1% to $1182 an ounce.
European markets, after falling sharply in the first half on the back of Greece’s failure to elect a president, rebounded later to end mixed with FTSE, DAX and CAC closing in the green while Italy and Spain ended lower. Greece itself ended 4% lower, recovering from an initial 11% dip. The country will now go for general elections early next year, potentially jeopardizing Greece’s hard-won economic recovery.
                                                             
AT HOME
After a gap up opening, benchmark indices traded in a narrow range through the session and finally ended higher by six tenth of a percent. Sensex gained 154 points to settle at 27396 while Nifty finished at 8246, up 46 points. BSE mid-cap and small-cap indices gained 0.9% and 0.5% respectively. Except a 0.2% cut in Bankex, all other sectoral indices ended higher with Metal and Auto indices leading the tally, putting on 2.4% and 1.5% respectively.
FIIs net sold stocks and stock futures worth Rs 204 cr and 15 cr respectively but net bought index futures worth Rs 548 cr. DIIs were net buyers to the tune of Rs 360 cr.
Rupee depreciated 11 paise to end at 63.67/$, marking a 13 month low.
Government yesterday recommended promulgation of an ordinance making significant changes in the Land Acquisition Act including removal of consent clause for acquiring land for five areas of industrial corridors, PPP projects, rural infrastructure, affordable housing and defence.
The Cabinet also approved an ordinance to amend almost two decades old arbitration and conciliation law, which would make settlement of contractual disputes easier.
OUTLOOK
Today morning, except half a percent higher Shanghai, other Asian markets are trading with modest cuts but SGX Nifty is suggesting about 20 points higher opening for our market.
As we have been mentioning, 8373, the 61.8% retracement level of the entire 8627-7961 fall, continues to be an important hurlde to eye, a crossover of which would also confirm a higher-top higher-bottom formation on the daily chart and would pave the way for the retest of the 8627 top.

On the way down 8150-8115 is the support area where 8150 is the bottom made last week while 8115 is the 61.8% retracement level of the recent 7961-8365 pullback.
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