NIFTY REBOUNDS AFTER TESTING 34-DMA SUPPORT; 10830 IS THE IMMEDIATE HURDLE

NIFTY REBOUNDS AFTER TESTING 34-DMA SUPPORT; 10830 IS THE IMMEDIATE HURDLE

WORLD MARKETS

Dow fell 0.2% while S & P 500 and Nasdaq gained 0.2% and 0.7% respectively with the Nasdaq posting a record close and Dow down for the seventh straight day.

Nasdaq was supported by gains in Facebook and Netflix, which also hit record levels. Disney raised its bid for Twenty-First Century Fox to $38 per share, or $71.3 billion, surpassing an offer made by Comcast.

Federal Reserve Chair Jerome Powell said that the case for continued interest rate increases is "strong," citing solid economic growth and employment.

Media report suggested that the German automakers are proposing to terminate the European Union's import tax on U.S.-made cars.

US crude rose 1.8% to $66.22.

European markets, except 0.3% lower CAC, gained 0.1%-0.3%.

AT HOME

Sensex and Nifty gained 0.7% and 0.6% respectively to break two-day losing streak. Sensex added 260 points to settle at 35547 while Nifty finished at 10772, up 61 points. BSE mid-cap and small-cap indices gained 0.2% and 0.3% respectively. BSE Metal index gained 1.1%, becoming top gainer among the sectoral indices, followed by 1% higher Bankex, Energy and Finance indices. FMCG index was the top loser, down 0.4%, followed by 0.3% lower Capital Goods and Oil & Gas indices.

FIIs net sold stocks and index futures worth Rs 2443 cr and 1247 cr respectively but net bought stock futures worth Rs 575 cr. DIIs were net buyers to the tune of Rs 1474 cr.

Rupee appreciated 31 paise to end at 68.07/$.

OUTLOOK

Today morning, Asian markets are trading with modest gains but SGX Nifty is suggesting a marginally lower start for our market.

After testing 34-DMA support placed around 10700, Nifty yesterday rebounded to end at 10772. 10830, the top made on Monday, is the immediate hurdle, above which 10900-10930 region would be the bigger resistance zone.