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Market Ahead, January 8: All you need to know before the Opening Bell

The National Statistical Office yesterday forecast 5 per cent growth for the current financial year, the slowest pace in 11 years

BS Web Team  |  New Delhi 

An uptick in US-Iran tensions will dominate Wednesday's trading session after Iran launched a missile attack on US-led forces in Iraq in the early hours today.

Tehran fired more than a dozen ballistic missiles from Iranian territory against at least two Iraqi military bases hosting US-led coalition personnel, a report by Reuters said.

Oil rose sharply following the attack. Brent crude futures surged almost 4 per cent and the WTI crude futures rose nearly 5 per cent , to $65.50 a barrel.

Besides oil's level and further development in the US-Iran conflict, investors will also track the Rupee's trajectory, and stock-specific developments today.

In other major news, the National Statistical Office yesterday forecast 5 per cent growth for the current financial year, the slowest pace in 11 years. Manufacturing is expected to grow at 2 per cent in FY20 which would make the current industrial slowdown the worst in nearly two decades.

In stock-specific news, private lender YES Bank will hold a board meeting on January 10 to discuss fundraising.

Globally, Wall Street’s major indexes declined on Tuesday as investor caution persisted amid the US-Iran dispute. The Dow Jones fell 0.42 per cent, the S&P 500 lost 0.28 per cent, and the Nasdaq Composite dropped 0.03 per cent. Asian shares also plunged in early trade. MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.5 per cent, Japan's Nikkei dropped 2.5 per cent, and Australian shares fell 1 per cent. The SGX Nifty also spiraled almost 190 points lower, signalling a subdued start for the domestic indices.

Back home, investors flocked equities on Tuesday after two days of consecutive losses. The benchmark S&P BSE Sensex settled at 40,869 level, up 193 points and the Nifty50 closed at 12,053-mark, up 60 points. Going forward, analysts say that the Nifty has formed inside bar and bullish “Harami” candlestick pattern on the daily charts. This indicates that any level above 12,180 would negate bearish developments and level below 11,974 would lead to further fall towards 11,800 support.

And, in the end, here's a stock recommendation by HDFC Securities which says you can buy GSPL at Rs 236.6 for the target of Rs. 254 with stop-loss at Rs 222.

First Published: Wed, January 08 2020. 06:47 IST