10100 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 9920

10100 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 9920

WORLD MARKETS                             

US equities gained 0.1%-0.3% with the Dow hitting record intraday and closing high while S & P 500 and Nasdaq notched a record intraday high.

Wal-Mart announced a $20 billion buyback and reiterated its earnings outlook for the current fiscal year. Honeywell announced it plans to spin off its Home Products and Transportation Systems businesses into two separate companies. Pfizer, another Dow said it was thinking about selling or spinning off its consumer health-care business.

US crude rose 2.7% to $50.92 a barrel and Brent gained 1.3% to $56.52 after Saudi Arabia announced it would cut its oil exports in November by 560,000 barrels a day

European markets, except a 0.4% higher FTSE, lost upto 0.9% with Spain and Italy leading the losses on the back of ongoing political uncertainty in Spain.

AT HOME

Benchmark indices gained about a fourth of a percent, extending the winning streak to third straight day. Sensex added 78 points to settle at 31924 while Nifty finished at 10017, up 28 points. BSE mid-cap and small-cap indices climbed 0.6% and 1% respectively. Except a 1% and 0.2% lower Realty and FMCG indices, all the BSE sectoral indices ended in green with Utilities and Energy indices leading the tally, up 1% and 0.9% respectively.

FIIs net sold stocks and index futures worth Rs 505 cr and 391 cr respectively but net bought stock futures worth Rs 436 cr. DIIs were net buyers to the tune of Rs 402 cr.

Rupee appreciated 7 paise to end at 65.29/$.

IMF lowered India's growth projection for FY18 by half a percent to 6.7%, attributing it to demonetisation and introduction of the GST.

OUTLOOK

Today morning, except a marginally lower Shanghai, other Asian markets are trading with gains of upto 0.4% and SGX Nifty is suggesting about 30 points higher start for our market.

After 34-DMA hurdle of 9930 was taken out, we had said that 10015, the two-third retracement level of the 10180-9685 fall, is the next target as well as the hurdle to eye, a crossover of which is required for a fresh upmove.

Yesterday, Nifty rose 28 points to end at 10017, taking out this hurdle decisively.

10100 is the next upside target to eye above which 10180 would be the major resistance to eye.

Immediate support on the hourly chart is placed around 9920, with the stop-loss of which trading longs should be held on to.