10700 AFTER SUSTAINED CROSSOVER OF 10510

10700 AFTER SUSTAINED CROSSOVER OF 10510

WORLD MARKETS                             

US indices gained 0.2%-0.6% with the Dow closing above 25000 for the first time ever.

Data from ADP and Moody's Analytics showed the U.S. private sector added 250,000 jobs in December, much higher than the expected 190,000 figure. The IHS Markit services PMI hit a seven-month low.

U.S. Treasury yields moved higher after the report with 10-year yield at 2.45%, while the two-year yield rose to 1.96%. Dollar index however erased previous day’s gains to end at 91.86.

European market soared 0.3%-2.8% with Italy on the top. Automotive stocks led the gains on better-than-expected U.S. car sales data.  Services PMI data showed the euro zone was hovering close to its best growth in seven years.

AT HOME

After a flattish start, benchmark indices saw a sustained northward move through the session to end with gains in excess of half a percent. Sensex added 176 points to settle at 33970 while Nifty finished at 10505, up 62 points. BSE mid-cap and small-cap indices rose 0.7% and 0.9% respectively. Except a 0.2% and 0.1% lower Realty and Auto indices respectively, all the BSE sectoral indices ended in green with Metal and Consumer Durable indices leading the tally, up 2.8% and 2.5% respectively.

FIIs net bought stocks worth Rs 212 cr but net sold index futures and stock futures worth Rs 448 cr and 108 cr respectively. DIIs were net buyers to the tune of Rs 325 cr.

Rupee appreciated 13 paise to end at 63.40/$.

OUTLOOK

Today morning, Asian markets are trading with gains of upto half a percent and SGX Nifty is suggesting about 25 points higher opening for our market.

After getting resisted near the 10510 hurdle on Wednesday, Nifty yesterday showed quite strength by closing at 10505 after touching an intraday high of 10513.

A sustained trading above 10510-10530 resistance area would generate a "Buy" on the hourly chart and would pave the way for further upmove. 10700 would be the next upside target if that happens.

Meanwhile, traders can initiate long positions once the top made in first hour is crossed with the stop-loss of 10405, which is the bottom made on Tuesday.

Government will release first advanced Gross Domestic Product (GDP) estimates for the current financial year and the expected figure is around 6.7%.