Wednesday, November 22, 2017

10340-10360 IS THE IMMEDIATE RESISTANCE ZONE; 10230 SUPPORT

10340-10360 IS THE IMMEDIATE RESISTANCE ZONE; 10230 SUPPORT

WORLD MARKETS                             

US indices climbed 0.6%-1.1% to record highs following a rally in tech stocks and strong earnings from some of the biggest U.S. companies like Medtronic, Hormel Foods and Dollar Tree.

On Monday, President Trump said before a cabinet meeting that his administration was going to "give the American people a huge tax cut for Christmas."

On the data front, the Chicago Fed National Activity Index rose in October. Existing home sales rose more than expected in October.

U.S. crude added 0.7%, or 41 cents, to $56.83 per barrel, while Brent rose 0.6%, or 35 cents, to $62.57.

European markets gained 0.3%-0.6%.

AT HOME

Benchmark indices gained nearly a third of a percent, extending the winning streak to fourth straight day. Sensex added 118 points to settle at 33478 while Nifty finished at 10327, up 28 points. BSE mid-cap and small-cap indices gained 0.1% and 0.4% respectively. BSE Consumer Durable and Healthcare indices climbed 2% and 1.8% respectively, becoming top gainers among sectoral indices while Realty and FMCG indices were top losers, down 1.3% and 0.2% respectively.

FIIs net sold stocks and stock futures worth Rs 727 cr and 1434 cr respectively but net bought index futures worth Rs 878 cr. DIIs were net buyers to the tune of Rs 825 cr.

Rupee appreciated 21 paise to end at 64.89/$.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.3%-0.9% and SGX Nifty is suggesting about 25 points higher start for our market.

In yesterday's report we had reiterated the view that 10340, the 61.8% retracement level of the recent 10490-10094 fall, is the immediate hurdle upon sustained trading of which 10490 would be the next target.

Yesterday, Nifty after touching a high of 10358, retreated to end at 10327 but is set to open higher today.

10360 is the two-third retracement level of the 10490-10094 fall which makes 10340-10360 immediate resistance zone, a crossover of which is required for a fresh upmove and 10490 would be the next upside target if that happens.


Meanwhile, immediate resistance on the hourly chart has moved up to 10230, with the stop-loss of which, trading longs should be held on to.

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