NIFTY EXTENDS CONSOLIDATION; 10490-10330 ARE THE LEVELS TO WATCH

NIFTY EXTENDS CONSOLIDATION; 10490-10330 ARE THE LEVELS TO WATCH

WORLD MARKETS                             

US indices gained 0.1%-0.2% after several companies several companies said that they would reinvest savings from lower corporate taxes into higher wages and construction projects.

U.S. economy grew 3.2% in the third quarter, slightly lower compared to the reading of 3.3% reported in November, but remained the fastest rate of growth seen in longer than two years.

Catalonia in Spain went to poll yesterdy and Pro-independence parties are set to win a majority of the seats in the assembly, with 96% of votes tallied so far. Spain's government had sacked the regional parliament when the latter declared its independence in October.

European markets gained 0.3%-1%.

AT HOME

Benchmark indices ended marginally in the red after trading in a narrow range through the session. Sensex settled at 33756, down 21 points while Nifty lost 4 points to finish at 10440. BSE mid-cap and small-cap indices however outperformed rising, 0.8% and 1.1% respectively. BSE Power and Capital Goods indices climbed 1.9% and 1.4% respectively, becoming top gainers among sectoral indices while Energy index and Bankex were top losers, down 0.4% and 0.3% respectively.

FIIs net sold stocks and index futures worth Rs 384 cr and 184 cr respectively but net bought stock futures worth Rs 56 cr. DIIs were net buyers to the tune of Rs 1574 cr.

Rupee appreciated 10 paise to 64.01/$.

OUTLOOK

Today morning, Asian markets are trading flat to modestly higher and SGX Nifty is suggesting a marginally higher start for our market.

After achieving 10490 target, Nifty is in a consolidation mode. Just to reiterate, a decisive crossover of 10490 hurdle is required for a fresh upmove and if that happens, 10950-11000 would be the next major target area.

Meanwhile, 10330 continues to be immediate support, with the stop-loss of which, existing longs can be held on to.