Nifty struggles below 7650, Sensex flat; Reliance, HDFC up

Moneycontrol Bureau11:55 am China inflation: China's consumer inflation picked up slightly in November but remained well under the government's 2015 price target of 3 percent, raising concerns that the world's No. 2 economy could be sucked into a Japan-style deflationary trap. With the economy sputtering after years of double-digit growth, analysts predict Chinese consumer prices are unlikely to pick up significantly in the near future due to crumbling commodity and energy prices, overcapacity and weak demand.11:45 am Market outlook: Financial would not be surprised if Nifty is at 9500 by June-July, 2016 because 2015 has been a great year of consolidation and the time correction has happened, adding that the risk reward is now favourable to build a long-term portfolio. In an interview to CNBC-TV18 Shah says, one should follow what Warren Buffet says: be greedy when others are fearful. "This is apt in the current scenario where people are fearful and seem to be losing focus of the medium or long-term trend of the market," he said. According to him the screen is telling us that there is capitulation, so 7500 would prove to be a good support for the Nifty. “Market will find a durable support around 7450-7550 zone, and if we were to see recovery from these levels then we can get back to level of 8000 and then 8300,” he adds.11:30 am Sell-off: Havells India, the lighting and electrical products manufacturer, said it has decided to sell 80 stake in Havells Sylvania Malta BV owned by its subsidiary Havells Holdings, to Chinese company. "Board of directors of the company today in its meeting (in China) has approved divestment plans proposed by one of its wholly owned subsidiary, Havells Holdings (HHL), Isle of Man," the company said in its filing to the exchange.Don't miss: RBI may tighten SDR norms to avoid misuse by banks 

The market is still refusing to budge as the Sensex is up 30.38 points at 25066.43. The Nifty is up 7.90 points at 7620.40. About 1265 shares have advanced, 927 shares declined, and 147 shares are unchanged.

GAIL, Hindalco, Reliance, NTPC and HDFC are top gainers in the Sensex while Sun Pharma, Lupin, Tata Motors, BHEL and M&M are losers.

Gold was treading water as investors stuck to the sidelines ahead of a widely anticipated US rate hike next week, with even a slump in the dollar failing to trigger interest in the metal.A softer dollar makes greenback-denominated gold cheaper for holders of other currencies, and typically sends gold prices higher. But the looming US rate hike is keeping a lid on prices, which fell to near-six-year lows last week.

The Fed will move very gradually after it delivers what is widely expected to be its first interest rate hike in nearly a decade next week, according to a Reuters poll that points to a tame inflation outlook for next year.

A slide in the oil price to a seven-year low, along with a dip in the broader commodity markets, added pressure to gold.