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Pre-market: Nifty seen opening higher; may reclaim 8350 levels

Tracking the momentum, the Nifty index is expected to reclaim its crucial psychological level of 8350 in trade today.

ET Online|
Last Updated: Dec 23, 2014, 07.43 AM IST
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Tracking the momentum, the Nifty index is expected to reclaim its crucial psychological level of 8350 in trade today.
Tracking the momentum, the Nifty index is expected to reclaim its crucial psychological level of 8350 in trade today.
NEW DELHI: The 50-share Nifty index is expected to open higher on Tuesday following positive trend seen in other Asian markets. Tracking the momentum, the index is expected to reclaim its crucial psychological level of 8350 in trade today.

At 07:30 a.m., Nifty India stock futures in Singapore were trading 21.50 point higher at 8,356.50 indicating a higher opening on the domestic market.

Nifty remained lack luster in the initial half of the session but surged higher in the final hour of trade to end with a gain of 98 points at 8324. Sensex too appreciated by 329 points and closed at 27,701 on Monday.

"The Nifty index has now retraced more than 50% of the recent decline and may continue to remain buoyant as long as Nifty trades above the range of 8200 - 8170 which has now emerged as an important support for the index," GEPL Capital said in a report.

"On the higher side the index may scale higher till 8370 which is the 61.80% Fibonacci retracement of the recent decline from 8623 till 7961," added the report.

Benchmarks indices have extended gains for third straight session with Sensex recovering over 1000 points from its recent low. The major contributor to the Nifty has rally has been banking stocks.

"I would advocate possible long positions at current levels. The banking pack has given lot of buy signals in the last one hour today. While the Bank Nifty is very close to its all-time highs, lot of PSU banking names, private sector banking names, have clearly gone into a strong buy mode along with the Bank Nifty," said Mitesh Thacker, Technical Analyst, miteshthacker.com.

He expects the Bank Nifty to touch possible targets of 19,500 to about 20,000.

"Once that happens, the Nifty could start aiming for targets of around 8,450-8,500 on the upside. The momentum is most likely to extend on the upside," he added.

Overnight, US stocks ended higher with both the Dow and S&P 500 ending at records as large-cap technology shares gained and offset continued weakness in energy names.

"Major indexes opened with slight gains but strengthened throughout the session, ending near their highs of the day. Despite that, trading was quiet with many market participants out ahead of the upcoming Christmas holiday," Reuters reported.

"Crude oil sank 3.2 percent after Saudi Arabia's powerful oil minister said OPEC would not cut production at any price. The S&P energy index fell 1 percent as one of the day's weakest sectors," added the report.

The Dow Jones industrial average rose 154.64 points, or 0.87 percent, to 17,959.44, the S&P 500 gained 7.89 points, or 0.38 percent, to 2,078.54 and the Nasdaq Composite added 16.04 points, or 0.34 percent, to 4,781.42.

Asian shares were trading mixed. Hong Kong's Hang Seng index was trading 0.10 per cent higher at 23,430 and China's Shanghai index was trading 1.5 per cent lower at 3,079.



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