Domestic Equity Market News:
Indian markets went down. Nifty closes below 7800 level in the spot.
Nifty was dragged down by ITC, Banks along with some other heavyweights. European markets are trading in red which have triggered selling in Nifty today in the second half during closing time.
Nifty is expected to take support from present levels and could see some buying coming in. Big upside moves will not be sustained and are not on the cards. Downside support at 7750 levels, which could be used as SL in case of going Long.
Telecom, Metals & Mining went up; IT tumbles down.
Telecom sector went up over the news from TRAI and some developments taking place in a few companies. TRAI has said that it would not force any penalty before the 6th January date which will give some more time to companies to fight govt in SC. IT down over strong INR and profit booking.
Metals and Mining are not expected to do very well, so going short would be suggested. Telecom is under stress and any up move coming up will be short lived.
Domestic Commodity Market News:
India’s NG production drops by 3.9% in November.
Weak NG production suggests lower demand in the market. Coal prices are falling along with oil, which is giving competition to NG. NG’s global supply is far above, then the demand and it is going to head further down in coming months.
NG is trading with the support of Rs. 125.50 levels. It is expected to trade in lower ranges. Sell from high could be the strategy of the moment.
Gold is trading in the range and looking for event to decide its trend.
MCX Gold is looking weak in ultra short term as international price movement will put pressure on the prices. Strong INR too will push it down.
Gold is expected to see some pressure from present levels. Support of 25300 might not sustain if the GDP data of US comes out favoring equities.
International Commodity Market News:
Gold is trading at higher ranges and could see selling coming in if US GDP comes as per forecast.
Gold has moved up in the past weak and is trading at very important levels. Gold gained strength even after the US Fed’s interest rate hike shows that investors are still confused on equities. Today’s GDP data of US might crush this view.
Gold is expected to go down from present levels if the GDP data comes as per the forecast. Gold is trading at $1082 – $1074 level; $1082 is a very important resistance level.
Crude oil prices are trying to find support at present levels.
Crude oil is running weak and is expected to lay low in the near future, but intraday spikes could come up in this weak because of inventory data and other global data.
Crude oil is trading with the resistance of $36.40 and is looking positive if closes above it in the next 1-2 hr, till $36.80 – $37.
Global steel production went down by 4% in the month of November.
Global crude steel production went down in the past month, suggesting weakness in the global economy, which again has been led by China as it is the biggest consumer of steel worldwide.
Weakness in steel and other metals is likely to stay in coming days. Weak demand will push prices further down. Equities too will run weak if commodities do not get support in mid term.
Data due tomorrow: UK’s GDP Data (q/q), Canada’s GDP Data & US’s Consumer Sentiments, Durable Goods Order, New Home Sales, Crude Oil Inventories.
US will post its GDP data today, which is expected to come around at 1.9%; If it manages to clock in more than the forecasted then markets will surge up tomorrow.
US’s GDP data will decide the course for the remaining days of this week. Tomorrow is a crucial day from global data perspective. Keep focus on tomorrow’s data as Indian markets will decide its course on that.
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