10440 IS THE DOWNSIDE TARGET/SUPPORT; 10671 IMMEDIATE HURDLE

10440 IS THE DOWNSIDE TARGET/SUPPORT; 10671 IMMEDIATE HURDLE

WORLD MARKETS

After rising in the first half, US indices gave away much of the gains later. Dow ended absolutely flat while S & P 500 and Nasdaq finished higher by 0.3% and 0.9% respectively.

Apple gave up a 2.1% gain toward the end of the day to close 0.1% lower. Other tech shares like Facebook, Amazon and Alphabet all climbed more than 1%.

Durable goods orders fell 4.4% in October, more than expected. Weekly jobless claims rose to a more than four-month high last week.

US crude rebounded 2.3% to settle at $54.63 a barrel. Brent rose 1.3% to $63.34. U.S. crude stocks rose 4.9 million barrels last week, a larger-than-expected increase.

European markets climbed 1%-1.6%. Italian banks gained amid reports the country's Deputy Prime Minister could be prepared to review the government's 2019 budget. However, the European Union has since announced it will look to sanction Italy with a fine if the country continues to refused to submit a budget proposal that abides by its rules.

AT HOME

Sensex and Nifty fell 0.8% and 0.5% respectively, extending the losing streak to second straight day. Sensex lost 274 points to settle at 35199 while Nifty finished at 10600, down 56 points. BSE mid-cap and small-cap indices however gained 0.6% and 0.1% respectively. BSE IT and Teck indices tumbled 2.9% and 2.5% respectively, becoming top losers among the sectoral indices while Realty and Healthcare indices were the top gainers, up 1.5% and 1% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1652 cr, 705 cr and 111 cr respectively. DIIs were net buyers to the tune of Rs 607 cr.

Dr Reddy surged after a US court ruling allowed it to sell a generic version of opioid treatment drug, Suboxone.

OUTLOOK

Today morning, Asian markets are trading little changed and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had reiterated the view that 10625 was the immediate support, a breach of which will confirm a sell on the hourly chart and would pave the way for further correction.

Nifty broke 10625 support and fell all the way to 10562 before closing at 10600 and is set to open flat today.

10440, the bottom made last week, continues to be next downside target/support to eye. 10671, the top made yesterday, is the immediate hurdle above which 10775, the top made on Monday, would be the next important hurdle to eye.

US markets will remain shut today for the Thanksgiving holiday. Indian markets will remain shut tomorrow for Gurunanak Jayanti.