TODAY MARKET MAY BE POSITIVE

Asian markets opened flat after a super week which has seen gains across
the board for most Asian indices. The developed markets are leading the
winners with US, Japan & German indices seeing fresh new highs.
Base Metals, Commodities & Bonds all three rising indicating the
expectations of rising growth being the driver for equities in 2017.
Nifty scaled 8250 with ease as foreign buying coupled with short
covering saw gains across the board. Rupee strength along with bond
yields stabilising also saw sentiment get a boost as foreign buying
resumed in December after the big selloff in November. For today expect
mid caps to lead the gains as participation gathers momentum.
Nifty will attempt 8300 with 8330 being a strong resistance while 8180
acts as strong support. Bank Nifty also finds support around 18350 while
18750 will act as resistance.
Major US indices ended at record highs on Thursday, extending a
month-long rally post president-elect Trump took charge. However, thee
European Central Bank left interest rates unchanged but made an
announcement to reduce its asset purchase plan to 60 bln euros from the
existing 80 bln euros. The ECB also extended its quantitative easing
program till the end of 2017. The Dow Jones industrial average rose
65.19 points to 19,614.81, the S&P 500 gained 4.84 points to
2,246.19 and the Nasdaq Composite added 23.59 points to 5,417.36. All
three indexes set new records, a day after they each posted gains of at
least 1%.
The Asian indices are observed mixed performance, however, the indices
might hold on to yesterday's momentum, as the industry is awaiting US
Federal Reserve's monetary policy meet next week, wherein the Fed is
expected to raise interest rates. At 7:30 am, China's Shanghai Composite
started at 3210 down 0.15%, similarly Hong Kong's Hang Seng was down at
0.42% at 22762. While, Singapore's Straits Times commenced at 2962 up
0.33% and Japan's Nikkei 225 at 18944 up 0.95%.
Foreign institutional investors net bought index futures worth Rs14.40
billion, and stock futures worth Rs 2.11 billion on the NSE. FIIs net
bought index options worth Rs 8.43 billion while FIIs net bought Indian
shares worth Rs 6.99 billion on the BSE, NSE, and Metropolitan Stock
Exchange combined, while domestic institutional investors net bought
shares worth Rs 643.2 million.
The American Depository Receipts (ADRs) of Indian companies ended mixed
note. Leading gainers were ICICI Bank, Tata Motors, Vedanta, Dr Reddy's.
While, on the Wipro, Sify, and HDFC Bank lost some sheen and closed on a
lower note.
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