10123 IS THE IMMEDIATE SUPPORT; 10252 IMMEDIATE HURDLE

10123 IS THE IMMEDIATE SUPPORT; 10252 IMMEDIATE HURDLE

WORLD MARKETS                             

US indices climbed 0.4%-0.7% to hit record high on tax reform hopes.

The U.S. Senate passed a budget proposal Thursday that allowed Republicans to move closer to eventually passing tax reform.

GE shares closed 1% higher after falling as much as 6.3% on the company's downbeat results.

Main European markets ended flat but Italy and Spain gained 1% and 0.2% respectively. News on Catalonia suggested that Spain's central government would move to suspend the region's autonomy and Spanish government had agreed with the opposition Socialists to hold regional elections in January in Catalonia..

For the week, US indices gained 0.4%-2%. In Europe, FTSE fell -0.2%, DAX was flat and CAC gained 0.4%. In Asia, Nikkei climbed 1.4%, Shanghai was up 0.2% while Hang Seng was flat.

Japanese Prime Minister Shinzo Abe's ruling coalition secured a two-thirds "super majority" at Sunday's election. This points to a continuation of his Abenomics program, which includes the use of hyper-easy monetary policy. Following the news, the dollar surged to trade at 113.88 yen, its highest levels in three months.

AT HOME

On the Muhurat trading day, benchmark indices opened flat but saw a sustained downward move through one hour session to end lower by 0.6%. Sensex fell 194 points to settle at 32390 and Nifty finished at 10147, down 64 points. BSE mid-cap index fell 0.25% but small-cap index rose 0.1%.

BSE Bankex tumbled 1.3%, becoming top loser among the sectoral indices, followed by 0.9% lower Metal and Finance indices. Telecom index surged 1.5%, becoming top gainer, followed by 0.2% higher Teck index.

For the week, Sensex and Nifty lost 0.1% and 0.2% respectively, breaking two-week winning streak.

OUTLOOK

Today morning, Nikkei is up nearly a percent, other Asian markets are trading with modest gains and SGX Nifty is suggesting about 50 points higher start for our market.

In Wednesday's report we had reiterated the view that 10100 is the immediate support, with the stop-loss of which trading longs should be held on to.

Nifty on Wednesday fell 24 points to finish at 10211 and tumbled 64 points on Thursday to settle at 10147 but is set to open around 10200 today.

10123, the low made last week, is now the immediate support, a breach of which will confirm a sell on the hourly chart and if that happens, 34-DMA, placed around 10000, would be next important target as well as the support to eye.

On the way up, 10252, the top made last week, is now the immediate hurdle above which 10380-10400 would be the next target area.

Traders are advised to keep stop-loss of 10123 in long positions.

Havells, Indiabulls Housing and Hindustan Zinc will report their quarterly earnings today.