10400 IS IMMEDIATE SUPPORT; 10550 IMMEDIATE HURDLE

10400 IS IMMEDIATE SUPPORT; 10550 IMMEDIATE HURDLE

WORLD MARKETS

US indices nosedived 2%-2.8% on the back of a big fall in Apple, a rise in the US Dollar and lingering worries about global trade.

Media reports suggested that the White House was circulating a draft report on auto tariffs.

Dollar index surged about two third of a percent to 97.64, its highest level since June 2017, raising concerns over its impact on earnings growth.

Apple plunged 5% after Lumentum Holdings, which makes technology for the iPhone's face-recognition function, cut its outlook for fiscal second quarter 2019. Alphabet and Amazon shares pulled back 2.7% and 4.3% respectively. Goldman shares posted their biggest drop in seven years after a report Malaysia's finance minister demanded a refund of fees paid the firm for its work in scandal-plagued state investment fund 1MDB.

US oil fell 26 cents to $59.93 a barrel, extending the losing streak to 11th session. Brent eased 6 cents to $70.12.

European markets fell 0.6%-1.8%

AT HOME

After gaining about half a percent at the open, benchmark indices nosedived a percent and half from the top of the day to end lower by a percent. Sensex settled at 34812, down 345 points while Nifty finished at 10482, down 103 points. BSE mid-cap and small-cap indices fell 0.9% and 0.8% respectively. Auto and Telecom indices tumbled 2.3% and 2% respectively, becoming top losers among the sectoral indices while Consumer Durable index climbed 1.4%, becoming top gainer, followed by 0.5% higher IT index.

FIIs net bought stocks worth Rs 832 cr but net sold index futures and stock futures worth Rs 169 cr and 147 cr respectively. DIIs were net sellers to the tune of Rs 1074 cr.

Rupee ended at 72.89/$, depreciating 40 paise compared to previous close.

CPI and IIP came in better-than-expected. October CPI eased to 3.31% from 3.70% in the previous month. September IIP growth eased to 4.5% from 4.7% in the previous month.

Eicher Motor's revenue and margin were in-line with expectation but PAT was a miss owing to an exceptional loss. Coal India's revenue rose 23% and adjusted margins stood at 23% as against the expectation of 21.2%.

OUTLOOK

Today morning, Nikkei is down more than 3% while Hang Seng and Shanghai are down 2% and 0.7% respectively. SGX Nifty is suggesting about 50 points lower start for our market.

For past couple of sessions we have been mentioning that a decisive crossover of 10607, the top made last week, which roughly coincided with 34-DMA, is required for a fresh upmove. Nifty has been hovering around this level since then but have not been able to take it out decisively.

Yesterday too, after touching a high of 10645 in the initial trade, the benchmark tumbled to end at 10482 and is set to open below 10450 today.

10400, which is the 38.2% retracement level of the 10004-10645 upmove and where a trendline adjoining recent bottoms on the hourly chart is placed, continues to be immediate support to eye. Below 10400, 10325 and 10250, the 50% and 61.8% retracement levels of the 10004-10645 upmove respectively, would be the next support levels to eye.

10550 is the immediate resistance on the hourly chart above which, 10645, the top made yesterday, would be the bigger hurdle to eye.

Sun Pharma and Tata Steel will report their quarterly earnings today.