Thursday, January 4, 2018



WORLD MARKETS                             

US indices gained 0.4%-0.8%, with all three indices hitting record highs and S & P 500 closing above 2700 first time ever.

Energy stocks surged after oil prices hit fresh two and half year high with WTI rising 2.1% to $61.63 and Brent crude up 1.9% at $67.84 a barrel.

Dollar broke a six-day losing streak to settle at 92.19 after December ISM manufacturing index came in at 59.7 and construction spending rose 0.8$ in November. The Atlanta Federal Reserve raised its fourth-quarter real GDP forecast to 3.2% from 2.8%, citing the strong ISM number.

Minutes from the Federal Reserve's meeting in December showed that most members thought upcoming changes in taxes would lead to higher real GDP growth. The minutes also showed FOMC members were somewhat at odds over meeting the central bank's inflation target of 2%.

Markets largely shrugged off a tweet from President Trump saying that his "nuclear button" was "much bigger and more powerful" than the one controlled by the North Korean leader.

European markets rose 0.3%-0.8%.


After rising more than half a percent in the first hour, benchmark indices gave away all the gains through rest of the session to end little changed. Sensex settled at 33793, down 19 points while Nifty finished 1 point higher at 10443. BSE mid-cap and small-cap indices however gained 0.5% and 1% respectively. BSE Basic Material and Capital Goods indices gained 1.5% each, becoming top gainers among sectoral indices while Auto and IT indices were the top losers, down 0.6% and 0.3% respectively.

FIIs net bought stocks and stock futures worth Rs 96 cr and 41 cr respectively but net sold index futures worth Rs 1011 cr. DIIs were net sellers to the tune of Rs 269 cr.

Rupee depreciated 5 paise to end at 63.53/$.


Today morning, Nikkei, which is opening after holidays, is up more than 2%. Hang Seng and Shanghai are up 0.6% and 0.4% respectively. SGX Nifty is suggesting about 25 points higher start for our market.

In yesterday's report we had reiterated the view that 10510 is the immediate hurdle, with the stop-loss of which, trading shorts should be held on to.

Nifty, after touching a high of 10504, slipped to end at 10443 but is set to open higher today.

10510 continues to be immediate hurdle, a sustained trading above which is required to generate a "buy" on the hourly chart.

34-DMA has now moved up to 10335 and is the immediate support to eye.

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