10490 IS THE NEXT TARGET; 10280 IMMEDIATE SUPPORT
US indices gained 0.5%-0.8% as the tax reform bill moved closer to potentially becoming legislation.
The House is expected to vote today on the bill that would slash the federal corporate tax rate to 21% from 35%.
President Trump unveiled his national security strategy, which referred to Russia and China as "revisionist powers." It also noted that those countries were "determined to make economies less free and less fair."
European markets surged 0.6%-1.6%. Basic resources stocks gained the most following sharp gains in Nickel and lead prices.
Benchmark indices managed to end higher by about half a percent after an extremely volatile trade owing to assembly election results. Sensex ended 139 points higher at 33602 while Nifty added 55 points to finish at 10388. BSE mid-cap and small-cap indices gained 0.8% and 0.4% respectively. Except 0.1% and 0.3% lower Energy and Realty indices respectively, all the BSE sectoral indices ended in green with Metal and Auto indices leading the tally, up 1.8% and 1.2% respectively.
FIIs net sold stocks worth Rs 432 cr but net bought index futures and stock futures worth Rs 219 cr and 268 cr respectively. DIIs were net buyers to the tune of Rs 1077 cr.
Rupee depreciated 18 paise to end at 64.23/$.
BJP won 99 out of 182 assembly seats in Gujarat election which is a loss of 16 seats compared to 2012 tally. Congress got 77, 16 higher than last time. However the vote share rose to 49.1% from 48.3%, which is highest since 2002. Also the seat loss is in rural areas rather than urban, which has raised expectation that the forthcoming budget would be more agri and rural focused.
In the 68 seat Himachal Pradesh assembly, BJP and Congress won 44 and 21 seats respectively.
Today morning, Asian markets are trading with gains of upto 0.4% and SGX Nifty is suggesting a marginally higher start for our market.
In yesterday's report we had mentioned that a crossover of 10373 would confirm a "Buy" on the hourly chart and in that case 10490, the top made in early November, would be the next target to eye.
Nifty, after touching a low 10075 in the initial trade, rebounded, crossed the 10373 hurdle and went all the way to 10443 before closing at 10388.
10490 continues to be upside target as well as resistance to eye. Immediate support on the hourly chart is placed at 10280, with the stop-loss of which, trading longs should be held on to.