8424-8440 IS THE RESISTANCE ZONE; 8275-8244 SUPPORT AREA

8424-8440 IS THE RESISTANCE ZONE; 8275-8244 SUPPORT AREA

WORLD MARKETS                             

US indices fell upto 0.3% with Energy and Industrial stocks leading the decline.

President Trump signed an executive order announcing his intention to withdraw from the Trans-Pacific Partnership (TPP), a trade agreement among 11 other Pacific Rim countries which was negotiated by former President Barack Obama's administration. Trump also said his administration could cut regulations by 75% or "maybe more" although further details were not given.

Treasuries rose, with the benchmark 10-year note yield falling to 2.40%, while the two-year note yield slipped to 1.15%. Dollar index fell about two-third of a percent to 99.93, marking a seven-week low. Gold rose $11 to $1,216 per ounce.

Brent crude fell 0.5% to $55.23 a barrel, while US oil eased 0.9% to $52.75 after data from Baker Hughes showed that U.S. drillers added the most rigs in nearly four years last week.

European markets fell 0.6%-0.8%.

AT HOME

Sensex and Nifty managed to end higher by 0.3% and 0.5% respectively after a choppy trading session. Sensex added 83 points to settle at 27117 while Nifty finished at 8391, up 42 points. BSE mid-cap and small-cap indices gained half a percent each. BSE Metal index soared 2.6%, becoming top gainer among the sectoral indices, followed by 1.4% rise in Basic Material index. Capital Goods and Healthcare indices were the top losers, down 0.6% and 0.5% respectively.

FIIs net sold stocks and stock futures worth Rs 289 cr and 26 cr respectively but net bought index futures worth Rs 353 cr. DIIs were net buyers to the tune of Rs 520 cr.

Rupee depreciated 2 paise to end at 68.20/$.

HUL's December quarter profit, boosted by exception gain, rose 7% to Rs 1038 cr. However, stripped of exceptional items, profit fell 10%. Income fell 0.8% to Rs 8318 cr. Volume growth was disappointing at negative 4% from negative 1% q-o-q. EBIDTA margin stood at 16.3% v/s 17% y-o-y.

Asian Paints reported 1.5% y-o-y rise in net profit at Rs 489 cr. Revenue rose 2.6% to Rs 4354 cr.

OUTLOOK

Today morning, except a marginally lower Shanghai, other Asian markets are trading with modest gains and SGX Nifty is suggesting about 15 points higher start for our market.

After Nifty broke immediate support of 8370, we have been working with downside target of 8275-8244 where 8275 is the top made in December and 8244 is the 38.2% retrcement level of the recent 7900-8460 upmove.

The benchmark, after opening at 8327 yesterday, recoerd to close at 8391 and is set to open higher today. After this opening, it would be again back in the vicinity of 8425-8440 resistance area where 8425 is where the trendline adjoining recent tops on the hourly chart is placed while 8440 is where the 34-week moving averge is palced. Only when 8440 is taken out decisively, a clean, fresh upmove can happen.

Traders are advised to hold on to short positions until 8440 hurdle is taken out decisively.

HCL Tech, Bharti Airtel, HDFC Bank and Kotak Bank will report their quarterly earnings today.