Markets will be rangebound, nervous ahead of important data in the US and state assembly election results in India

US GDP data grew at 3.6% higher than the 3 percent expected, the fastest pace since the first quarter of 2012. Also claims for unemployment benefits unexpectedly fell last week – and we are now just some hours away from getting the November non farm payrolls report.  US Markets – both Dow and  S&P which are at all-time highs seem set to post their first decline in nine weeks.

Traders have been trying to second guess how the Fed views strong data and if the numbers are strong enough for the tapering to start sooner, this is creating uncertainty and US Markets corrected marginally yesterday. While some believe that the data does not show a trend and there is no reason to think that tapering will start earlier than anticipated others feel differently. This evenings numbers are therefore keenly awaited, for this will set the tone for the rest of the month in terms of the kind of flows we can expect.

As it is the December series is a shorter one and typically from 25th December, Christmas, onwards FII’s take a break and their trading activity winds down. Indian markets have already run up cheering a possible BJP victory in the State elections – thus the room for upside in trade today seems a limited. Markets will tend range bound with a tinge of nervousness ahead of the two big events – the non farm payrolls report in the US and the state assembly results in India.

It is better to be stock specific in trade and play it by the ear and wait for Monday for market direction.

My trading recommendations for the day, the last day of Bulls Eye are:

All buys

IRB Infra  T 103 SL 98
Escorts T 124 SL 117
SIntex  T 35.5  SL 34
Yes Bank  T 405  SL 391





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