Tuesday, July 17, 2018

BROADER MARKET TUMBLES TO MULTI-MONTH LOW


BROADER MARKET TUMBLES TO MULTI-MONTH LOW

WORLD MARKETS

Dow gained 0.2% while S & P 500 and Nasdaq fell 0.1% and 0.3% respectively

Bank of America led financial stocks higher after reporting expectation-topping earnings and revenue.

Crude oil plunged after U.S Treasury Secretary Steven Mnuchin said the Trump administration would consider waivers for some countries to allow them to continue buying oil from Iran. WTI oil fell 4.2% to $68.06 and Brent fell 4.6% to a three-month closing low of  $71.84 a barrel.

US retail sales rose 0.5% in June, in line with expectations.

European markets, except 0.2% higher DAX, lost 0.2%-0.8%. The euro zone narrowed its trade surplus in May for the third month in a row. The surplus stood at 16.9 billion euros ($19.77 billion) in May from 18 billion euros in April.

AT HOME

Sensex and Nifty fell 0.6% and 0.7% respectively to extend losing streak to second straight day. Sensex fell 218 points to settle at 36323 while Nifty finished at 10936, down 82 points. Nifty mid-cap and small-cap indices nosedived 2.6% and 3.1% respectively to close at the lowest level since 27nd August 2017 and 24th May 2017 respectively. Except a 0.8% higher IT index, all the BSE sectoral indices ended in green with Metal index leading the losses, down 3.7%, followed by 3.3% lower Healthcare and Realty indices.

FIIs net sold stocks and stock futures worth Rs 626 cr and 465 cr respectively but net bought index futures worth Rs 595 cr. DIIs were net sellers to the tune of Rs 70 cr.

Rupee depreciated 5 paise to end at 68.57/$.

India's wholesale inflation grew 5.77% in June, a four-and-a-half year high, driven by some food items and fuel prices.

HUL reported largely in-line with estimated results. Net profit rose 19.2% to Rs 1529 cr while revenue was up 11.2% at Rs 9487 cr. EBIDTA rose 20.6% to Rs 2251 cr and margin expanded 193 bps to 23.7%. Volume growth stood at 12%.

The International Monetary Fund (IMF) has cut India’s growth forecast by 10 basis points to 7.3% for the current year and by 30 basis points to 7.5% for 2019, citing faster-than-anticipated monetary tightening and higher crude prices.

OUTLOOK

Today morning, Hang Seng and Nikkei are down 0.7% and 0.3% respectively while Nikkei is up 0.5%. SGX Nifty is suggesting a flattish start for our market.

After rising more than 500 points from the 10558 bottom made on 28th June, Nifty has witnessed some profit booking over last two sessions.

We had initiated long on Nifty after immediate hurdle of 10730 was taken out and have been advising holding on to long positions with a trailing stop-loss. On last count, we had advised trailing the stop-loss to 10890 for the next major target of 11171.

Nifty yesterday plunged 82 points to settle at 10936 and is set to open flat today.

10890 continues to be immediate support. 11078, the top made last week, is the immediate hurdle above which 11171, would be the next target to eye.

Traders are advised to hold long positions with the stop-loss of 10890.

ZEEL and Ashok Leyland will report their quarterly earnings today.

Monday, July 16, 2018

11170 CONTINUES TO BE UPSIDE TARGET; 10890 IMMEDIATE SUPPORT


11170 CONTINUES TO BE UPSIDE TARGET; 10890 IMMEDIATE SUPPORT

WORLD MARKETS

Dow and S & P 500 gained 0.4% and 0.1% respectively while Nasdaq ended flat on Friday. S & P 500 closed at its best level since early February.

Bank stocks however dipped after digesting earnings. J.P. Morgan Chase posted better-than-expected earnings and sales. Citigroup posted a stronger-than-expected profit but its revenue for the quarter missed. Wells Fargo’s earnings and revenue both missed.

European markets, except a 0.3% lower Spain, gained 0.1%-0.5%.

For the week, US indices gained 1.5%-2.3%. European markets rose 0.4%-1%. In Asia, Nikkei and Shanghai soared 3.7% and 3% respectively while Hang Seng was up 0.7%. These gains were on the back of easing of trade war concerns between US and China after China did not responded to tariffs on $200 billion worth of Chinese goods by the US.

AT HOME

Benchmark indices ended little changed after trading in a narrow range through the session. Sensex settled at 36541, down 7 points while Nifty lost 4 points to finish at 11018. BSE mid-cap and small-cap indices however tumbled 0.8% and 1.4% respectively. BSE Telecom and Realty indices tumbled 2% and 1.4% respectively, becoming top losers among the sectoral indices while Consumer Durable and Energy indices were the top gainers, up 0.9% and 0.8% respectively.

For the week, Sensex and Nifty gained 3.2% and 2.3% respectively.

FIIs net sold stocks worth Rs 1105 cr but net bought index futures and stock futures worth Rs 1459 cr and 517 cr respectively. DIIs were net buyers to the tune of Rs 872 cr.

Rupee appreciated 5 paise to end at 68.52/$.

Infosys reported mixed results. Constant currency revenue growth, at 2.3%, missed estimates while margins were in-line. Dollar revenue growh stood at 0.9%. Margins fell 100 bps to 23.7%. Net profit fell 2.1% to Rs 3610 cr. 
Company maintained FY19 constant currency revenue growth guidance at 6%-8% and margin guidance at 22%-24%.

India's fiscal deficit hit a 43 month high of USD 16.6 bn in June from $14.62 bn in May. Exports rose 17.6% yoy to $27.7 bn while imports surged 21.3% to $44.3 bn.

OUTLOOK

Today morning, Nikkei is shut while Hang Seng and Shanghai are down about 0.3% each. SGX Nifty is suggesting a flattish start for our market.

Just to reiterate, after Nifty achieved 10930 target, we have been working with next major target of 11171, the top made in January. Nifty, after touching a high of 11078 on Thursday, eased to close the week at 11018.

11171 continues to be upside target to eye. 10890 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.

HUL will report its quarterly earnings today.

Friday, July 13, 2018

TRAIL STOP-LOSS TO 10890


TRAIL STOP-LOSS TO 10890

WORLD MARKETS

Nasdaq surged 1.4% while Dow and S & P 500 gained 0.9% each on the back fo lack of escalation in trade tensions between the U.S. and China. Nasdaq hit a record high helped by all-time highs in Facebook and Amazon. Microsoft and Alphabet also hit intraday records.

Chinese commerce ministry said that China had not been in touch with the U.S. about restarting trade talks. U.S. Treasury Secretary Steven Mnuchin said that bilateral talks on trade could resume on the condition that China was open to making "serious efforts" to change.

The consumer price index rose at its fastest pace in six years and weekly jobless claims fell to 214,000 last week.

European markets gained 0.4%-0.8%.

AT HOME

Senesex and Nifty gained 0.7% and 0.8% respectively with Sensex closing at record high while Nifty closed at the highest level since 31st January. Sensex added 282 points to settle at 36548 while Nifty finished at 11023, up 75 points. BSE mid-cap and small-cap indices however fell 0.5% and 0.1% respectively. BSE Energy index soared 3.1%, becoming top gainer among the sectoral indices, followed by 1.6% higher Oil & Gas index. Realty and Auto indices were the top losers, down 1.1% and 0.8% respectively.

FIIs net sold stocks worth Rs 743 cr but net bought index futures and stock futures worth Rs 582 cr and 1165 cr respectively. DIIs were net buyers to the tune of Rs 366 cr.

Rupee appreciated 20 paise to end at 68.57/$.

India's retail inflation grew 5% in June, a five-month high, from May's 4.87%. Industrial production grew 3.2% in May as compared with 4.9% rise in April.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 1.3% and 0.7% respectively while Shanghai is down 0.2%. SGX Nifty is suggesting about 15 points higher start for our market.

Just to repeat, after Nifty achieved 10930 target, we have been working with next major target of 11171, the top made in January. Nifty yesterday touched a high of 11078 before closing at 11023 and is set to open higher today.

11171 continues to be upside target to eye. Immediate support on the hourly chart has moved up to 10890, with the stop-loss of which, existing longs can be held on to.

Infosys will report its quarterly earnings today.

Thursday, July 12, 2018

11171 CONTINUES TO BE MAJOR UPSIDE TARGET; TRAIL STOP-LOSS TO 10825


11171 CONTINUES TO BE MAJOR UPSIDE TARGET; TRAIL STOP-LOSS TO 10825

WORLD MARKETS

US indices fell 0.6%-0.9%, with the Dow snapping 4-day winning streak, after the Trump administration unveiled new tariffs on Chinese goods.

Trump administration published late Tuesday a list of 10% duties on $200 billion worth of Chinese goods. The tariffs won’t come into effect immediately, but rather face a review process, with hearings taking place in mid-to-late August.

Oil nosedived sharply on trade war and supply concerns as Libya resolved a major disruption to its crude exports and Saudi Arabia reported a big jump in output for June. Brent crude fell $5.46 or 6.9% to $73.40, it's worst performance since February 2016 and WTI was down $3.73 or 5% at $70.38, the biggest daily drop since June 2017.

Boeing and Caterpillar, two companies with high overseas revenue exposure, fell 1.9% and 3.2% respectively. Chipmakers also pulled back.

Dollar strengthened and treasuries rose, with the benchmark 10-year yield trading at 2.85%.

Meanwhile, at the onset of two-day NATO summit, Trump said in Brussels that Germany is “totally controlled” by Russia.

European markets fell 1.3%-1.6%. Basic resources and Oil & Gas were the top losers.

AT HOME

It was a day of consolidation as benchmark indices ended little changed after trading in a narrow range through the session. Sensex settled at 36265, up 26 points while Nifty added 1 point to finish at 10948. BSE mid-cap and small-cap indices however lost 0.7% and 0.3% respectively. BSE IT and Teck indices soared 2.4% and 1.9% respectively, becoming top gainers among the sectoral indices while Metal index nosedived 3.1%, becoming top loser, followed by 1.7% lower Basic Material index.

FIIs net bought stocks, index futures and stock futures worth Rs 636 cr, 708 cr and 766 cr respectively. DIIs were net buyers to the tune of Rs 15 cr.

Rupee appreciated 5 paise to end at 68.77/$.

OUTLOOK

Today morning, Nikkei, Shanghai and Hang Seng are up 1%, 0.8% and 0.2% respectively. SGX Nifty is suggesting about 30 points higher start for our market.

After Nifty achieved 10930 target, we have been working with next major target of 11171, which was the top made in January.

Meanwhile, immediate support on the hourly chart has moved up to 10825, with the stop-loss of which, trading longs should be held on to.

June CPI will be out today and is expected to rise to 5.3% from 4.87% in May. Core is expected to inch up to 6.3% from 6.2%. May IIP growth is expected to slow down to 3.9% from 4.9% in April.

Wednesday, July 11, 2018

NIFTY ACHIEVES 10930 TARGET; TRAIL STOP-LOSS TO 10810


NIFTY ACHIEVES 10930 TARGET; TRAIL STOP-LOSS TO 10810

WORLD MARKETS

Dow and S & P 500 gained 0.6% and 0.4% respectively while Nasdaq ended flat as earnings season kicked off. Dow extended the winning streak to fourth straight day.

Pepsico surged 4.8% after posting better-than-expected earnings.

European markets, except a 0.4% lower Spain, gained upto 0.7%.

US oil rose 26 cents to settle at $74.11.

AT HOME

Benchmark indices soared 0.8% each with Sensex and Nifty closing at the highest level since 29th January and 1st February respectively. Sensex soared 305 points to settle at 36240 while Nifty finished at 10947, up 94 points. BSE mid-cap and small-cap indices climbed 1% each. Except a 0.1% lower Healthcare index, all the BSE sectoral indices ended in green with Energy index leading the tally, up 2%, followed by 1.8% higher Realty and Telecom indices.

FIIs net sold stocks worth Rs 21 cr but net bought index futures and stock futures worth Rs 1771 cr and 295 cr respectively. DIIs were net buyers to the tune of Rs 294 cr.

Rupee depreciated 11 paise to end at 68.83/$.

TCS reported better-than-expected earnings with net profit up 6.3% q-o-q and 15.8% y-o-y at Rs 7340 cr. Dollar revenue rose 1.6% to USD 5051 mn while rupee revenue was up 6.8% at Rs 34261 cr. Constant currency revenue growth at 4.1% was the highest in last 15 quarters. EBIDTA rose 5.3% to Rs 8578 cr while margin fell 36 bps to 25.04%.

Indusind Bank reported in-line with estimated numbers for the June quarter. Net profit rose 24% y-o-y to Rs 1036 cr and NII was up 19.6% at Rs 2122 cr. Asset quality was stable with Gross NPA ratio improving 2 bps q-o-q to 1.15% and unchanged Net NPA ratio at 0.51%. Provisions were up 4.3% at Rs 350 cr. Slippages stood at Rs 475 cr as against Rs 860 cr.

OUTLOOK

The U.S. government has released a list of $200 billion worth of Chinese goods to be hit with 10% tariffs. Owing to this news, Shanghai and Hang Seng are down nearly 2% and Nikkei is off 1.7%. US futures are down about a percent. SGX Nifty is suggesting about 25 points lower start for our market.

Readers would recall that after Nifty took out the 10745 hurdle, we had given first target of 10840 followed by 10900-10930. Nifty yesterday touched a high of 10957 before closing at 10947, achieving 10930 target and vindicating our view.

Having taken out 10930 hurdle decisively, next major target as well resistance to eye would be 11171, the highest high we have seen so far, that was made on 29th January.

Meanwhile, immediate support on the hourly chart has moved up to 10810, with the stop-loss of which, trading longs should be held on to.

Tuesday, July 10, 2018

NIFTY ACHIEVES 10840; 10900-10930 NEXT


NIFTY ACHIEVES 10840; 10900-10930 NEXT

WORLD MARKETS

Dow surged 1.3% while S & P 500 and Nasdaq rose 0.9% each as bank stocks surged and trade war worries took a back seat.

Brent crude rose 96 cents or 1.2% to $78.07 a barrel amid looming sanctions on Iran and falling production in Libya. WTI rose 5 cents to $73.85.

European markets rose and the British Pound fell after United Kingdom Brexit Secretary David Davis and British Foreign Secretary Boris Johnson resigned after Prime Minister Theresa May secured parliamentary support for a plan to maintain close trade and regulatory ties with the European Union.

European markets gained 0.4%-0.9%.

AT HOME

After a gap up opening, benchmark indices added some more gains through the session to end higher by about three fourth of a percent. Sensex closed at the highest level since 31st January while Nifty ended at highest level since 13th June. Sensex added 277 points to settle at 35935 while Nifty finished at 10853, up 80 points. BSE mid-cap and small-cap indices soared 1.2% and 1.6% respectively. All the BSE sectoral indices ended higher with Capital Goods and Energy indices leading the tally, up 1.5% each followed by 1.4% higher Industrial and Utilities indices.

FIIs net sold stocks and stock futures worth Rs 570 cr and 91 cr respectively but net bought index futures worth Rs 870 cr. DIIs were net buyers to the tune of Rs 740 cr.

Rupee appreciated 15 paise to end at 68.72/$.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 1% and 0.6% respectively while Shanghai is down 0.3%. SGX Nifty is suggesting about 40 points higher start for ur market.

At ther risk of repeating, after Nifty took out the 20-DMA hurdle placed at 10745, we had given upside target of 10840 followed by 10900-10930 where tops made in June and May are placed.

Nifty yesterday soared 80 points to finish at 10853, achieving 10840 target, and is set to open higher today.

10900-10930 continues to be major resistance zone to eye.

Meanwhile, immediate support on the hourly chart has moved up to 10760, with the stop-loss of which, trading longs should be held on to.

TCS and Indusind Bank will report their quarterly earnings today.

Monday, July 9, 2018

10840 CONTINUES TO BE UPSIDE TARGET; TRAIL STOP-LOSS TO 10710


10840 CONTINUES TO BE UPSIDE TARGET; TRAIL STOP-LOSS TO 10710

WORLD MARKETS

US indices gained 0.4%-1.3% on Friday as stronger-than-expected employment data overshadowed trader war concerns.

The U.S. economy added 213,000 jobs in June as against expectation of a gain of 195,000. Unemployment, however, rose slightly to 4% percent from 3.8%. Wage growth also missed expectations, climbing 2.7% on a y-o-y basis, as against expected growth of 2.8%.

U.S. tariffs on $34 billion of Chinese goods came into effect earlier on Friday. China responded to the fresh tariffs by imposing its own retaliatory levies on imports from the States.

European markets rose upto 0.4%.  British Prime Minister Theresa May last week won agreement from her cabinet to remain in a free trade area for goods with the European Union, which markets see as a "soft Brexit.

For the week, US indices gained 0.8%-2.4% with Nasdaq on the top. In Europe, FTSE fell 0.2% but CAC and DAX rose 1% and 1.6% respectively. Asian markets ended with deep cuts with Shanghai down 3.5% and Hang Seng and Nikkei down 2.2% each.

AT HOME

After gaining more than half a percent, benchmark indices gave away most of the gains in last hour plunge to end higher by just a fifth of a percent. Sensex settled at 35658, up 83 points while Nifty added 23 points to finish at 10773. BSE mid-cap and small-cap indices gained 0.6% and 0.5% respectively. BSE Industrial and Realty indices climbed 1.5% and 1.3% respectively, becoming top gainers among the sectoral indices while Healthcare and Consumer Durable indices were the top losers, down 0.8% and 0.2% respectively.

FIIs net sold stocks worth Rs 968 cr but net bought index futures and stock futures worth Rs 156 cr and 480 cr respectively. DIIs were net buyers to the tune of Rs 1481 cr.

Rupee appreciated 7 paise to end at 68.87/$.

For the week, Sensex and Nifty gained 0.7% and 0.6% respectively.

OUTLOOK

Today morning, Hang Seng, Nikkei and Shanghai all are up a percent each and SGX Nifty is suggesting about 50 points higher start for our market.

Readers would recall that after Nifty took out the 20-DMA hurdle placed around 10745, we have been working with upside target of 10840, which was the top made on 22nd June.

Nifty, after touching a high of 10816 on Friday, eased to end at 10772 but is set to open above 10800 today.

10840 continues to be immediate upside target above which 10900-10930 would be the next major resistance area to watch.

Meanwhile, immediate support on the hourly chart has moved up to 10710, with the stop-loss of which, trading long should be held on to.

Friday, July 6, 2018

NIFTY IT INDEX SET TO REVERSE ITS UNDERPERFORAMCE


A HEALTHY WEIGHT-LOSS


10670 CONTINUES TO BE IMMEDIATE SUPPORT; 10840 UPSIDE TARGET


10670 CONTINUES TO BE IMMEDIATE SUPPORT; 10840 UPSIDE TARGET

WORLD MARKETS

US indices gained 0.8%-1.1% ahead of activation of levies on $34 billion in Chinese-made goods by the US on Friday, with Beijing expected to respond with its own levies on U.S. goods.

The Federal Reserve's latest minutes showed officials were concerned about letting the U.S. economy running too hot, as that could cause problems leading to a "significant economic downturn."

Trump yesterday said an additional $16 billion of Chinese products will be subject to tariffs in two weeks, also adding that he was considering more duties on $500 billion in Chinese goods.

Data from ADP and Moody's Analytics showed jobs grew by 177,000 in June, missing expectations. Jobs growth for May was revised higher, however. Weekly jobless claims rose unexpectedly last week to 231,000.

European markets rose 0.4%-1.2%. Auto stocks rose amid news German carmakers were now prepared to support an elimination of EU tariffs on cars imported from the U.S.

Oil fell 1.6% to settle at $72.94 after surprise rise in US crude inventories.

AT HOME

Benchmark indices ended lower by a fifth of a percent after a rangebound but choppy session. Sensex lost 71 points to settle at 35574 while Nifty finished at 10750, down 20 points. BSE mid-cap and small-cap indices slipped 0.7% and 0.4% respectively. BSE Consumer Durable index tumbled 2.8%, becoming top loser among the sectoral indices, followed by 1.7% lower Realty index. FMCG index climbed 1%, becoming top gainers, followed by 0.2% higher Finance and Auto indices.

FIIs net sold stocks worth Rs 159 cr but net bought index futures and stock futures worth Rs 704 cr and 192 cr respectively. DIIs were net sellers to the tune of Rs 297 cr.

Rupee depreciated 21 paise to end at 68.95/$.

The Karnataka government today announced a partial farm loan waiver of Rs 34000 crore, which will benefit farmers whose borrowings are less than Rs 2 lakhs.

Titan shares tumble after the company said that a high base last year and a one-off impact of Rs 250-crore sales getting advanced in anticipation of higher goods and services tax rate are likely to impact the quarter ended June adversely.

OUTLOOK

U.S. tariffs on $34 billion worth of Chinese goods from 818 product categories are set to take effect at 12:01 p.m. HK/SIN. China has announced retaliatory duties on the same value of U.S. products, also expected to kick in on Friday.

Today morning, Nikkei and Hang Seng are up 0.9% and 0.3% respectively while Shanghai is marginally in the red. SGX Nifty is suggesting about 20 points lower start for our market.

After Nifty took out the 20-DMA hurdle, we had given next target of 10840, which is the top made on 22nd June. Yesterday, after touching a high of 10786 in the initial trade, Nifty slipped to end at 10750 and is set to open lower today.

10840 continues to be upside target to eye. 10670 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

Thursday, July 5, 2018

NIFTY TAKES OUT 20-DMA HURDLE; STAY LONG WITH THE STOP-LOSS OF 10670


NIFTY TAKES OUT 20-DMA HURDLE; STAY LONG WITH THE STOP-LOSS OF 10670

WORLD MARKETS

US markets were shut yesterday for Independence Day.

In Europe, CAC was up 0.1% but FTSE and DAX fell 0.3% each. Technology stocks led the losses after a slide in U.S. chip makers in the previous session.

Britain's IHS Markit services PMI rose to an eight-month high of 55.1 in June, further supporting recent signs of the U.K.'s tentative economic recovery. For Germany, Markit's final services PMI rose to 54.1 in June, climbing to its highest level in four months.

Chinese yuan appreciated after notching an 11-month low against the dollar earlier this week. The stabilization in the currency came after the People's Bank of China reassured markets about the currency.

AT HOME

After falling about a fifth of a percent in the initial trade, benchmark indices surged just under a percent from the bottom of the day to end higher by about seven tenth of a percent. Sensex settled at 35645, up 267 points while Nifty added 70 points to finish at 10770. BSE mid-cap index however fell 0.2% while small-cap index gained 0.4%. BSE Auto and Energy indices were the top gainers among the sectoral indices, rising 1.3% and 1% respectively while IT and Teck indices were the top losers, down 0.6% each, followed by 0.5% lower Power and Consumer Durable indices.

FIIs net sold stocks and index futures worth Rs 285 cr and 550 cr respectively but net bought stock futures worth Rs 94 cr. DIIs were net buyers to the tune of Rs 611 cr.

Rupee depreciated 16 paise to end at 68.73/$.

The Union Cabinet approved the proposal to hike minimum support price (MSP) for all Kharif crops by 1.5 times of the input cost for the 2018-19 season.

Nikkei India Services Business Activity Index rose to 52.6 in June from 49.6 in May, marking a 12-month high. Composite PMI Output Index, has risen to 53.3 in June from 50.4 in May.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

Nifty yesterday soared 70 points to end at 10770, taking out the 20-DMA hurdle placed at 10750 decisively.

As mentioned yesterday, 10840, the top made on June 22nd, is the next target as well as hurdle to eye. Above 10840, 10900-10930 would be the tougher resistance zone to tackle.

Meanwhile, immediate support on the hourly chart is placed around 10670, with the stop-loss of which, trading longs should be held on to.

Wednesday, July 4, 2018

10745 CONTINUES TO BE IMMEDIATE HURDLE, 10550 MAJOR SUPPORT


10745 CONTINUES TO BE IMMEDIATE HURDLE, 10550 MAJOR SUPPORT

WORLD MARKETS

US indices fell 0.5%-0.9% in shortened trading session as technology stocks fell sharply.

Equities were als nervous ahead of July 6 when U.S. tariffs on $34 billion in Chinese products are set to kick in which is widely expected to trigger a tit-for-tat response from Beijing.

Semiconductor maker Micron plunged 5.5% after media reports suggested that a Chinese court temporarily prohibited the sale of Micron chips in the local market.

Earlier, enrgy stocks contributed to higher start after West Texas Intermediate oil futures broke above $75 per barrel for the first time since November 2014, but pared gains to end at $74.14, up 20 cents.

Chinese yuan dropped to its lowest levels against the dollar in around 11 month.

European markets gained 0.6%-1.6%

AT HOME

After starting on a weak note, Sensex and Nifty rebounded more than half a percent from the bottom of the day to end higher by 0.3% and 0.4% respectively. Sensex added 114 points to settle at 35379 while Nifty finished at 10700, up 43 points. BSE Mid-cap and small-cap indices gained 0.7% and 0.4% respectively. BSE Healthcare and IT indices climbed 1.8% and 1.1% respectively, becoming top gainers among the sectoral indices while Metal index and Bankex were the top losers, down 0.3% and 0.2% respectively.

FIIs net sold stocks worth Rs 1043 cr but net bought index futures and stock futures worth Rs 47 cr and 481 cr respectively. DIIs were net buyers to the tune of Rs 279 cr.

Rupee appreciated 22 paise to end at 68.57/$.

OUTLOOK

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

After Nifty rebounded from the vicinity of 10550 support last week, we had said that 10745, where 20-DMA is placed, is the immediate hurdle, a crossover of which is required for a further upmove.

Nifty closed at 10657 after testing a high of 10736 on Monday but rebounded to end at 10700 yesterday.

10645 continues to be immediate hurdle above which 10840 would be the next target.

10605, the low made yesterday, is the immediate support below which 10550 would be the crucial support to eye.

US markets will be closed today for Independence Day.