NIFTY ACHIEVES 10490 TARGET; 10330 IS THE IMMEDIATE SUPPORT

NIFTY ACHIEVES 10490 TARGET; 10330 IS THE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices ended marginally in the red.

Congress approved a bill that would cut corporate taxes. The bill now goes to President Donald Trump's desk to be signed into law. Among the sweeping changes included in the tax plan are provisions that would reduce the corporate tax rate from 35% to 21% and temporarily trim the tax burden on most individuals.

The 10-year U.S. yield hit 2.5%, its highest level since March 20, while the two-year yield rose to its highest level since October 2008.

Brent crude rose 76 cents to $64.56 per barrel and U.S. oil added 53 cents to settle at $58.09 after US crude inventories fell more than expected.

AT HOME

After gaining about three tenth of a percent, benchmark indices saw a sharp fall in last half an hour to end lower by a fifth of a percent, breaking four-day winning streak. Sensex lost 59 points to settle at 33777 while Nifty finished at 10444, down 19 points. BSE mid-cap and small-cap indices gained 0.4% and 0.8% respectively. BSE Realty index soared 3%, becoming top gainer among the sectoral indices, followed by 0.8% higher Metal index. Finance index and Bankex were the top losers, down 0.4% and 0.3% respectively.

FIIs net sold stocks and index futures worth Rs 1505 cr and 348 cr respectively but net bought stock futures worth Rs 1154 cr. DIIs were net buyers to the tune of Rs 146 cr.

Rupee depreciated 8 paise to end at 64.12/$.

OUTLOOK

Today morning, Asian markets are trading flat to modestly lower and SGX Nifty is suggesting about 20 points lower start for our market.

Readers would recall that after Nifty crossed the 10373 top made on Friday we were working with target of 10490, which was the top made in early November.

Nifty yesterday touched a high of 10494 before closing at 10444, achieving the target mentioned above and vindicating our view.

As mentioned in yesterday's report, 10490 is an important resistance, a decisive crossover of which is required for a fresh upmove. That continues to be the view. If that happens, 10950-11000 would be the next major target to eye. Meanwhile, immediate support on the hourly chart is placed at 10330, with the stop-loss of which, existing longs can be held on to.