10665 IS THE IMMEDIATE HURDLE; 10490-10440 IS THE SUPPORT ZONE

10665 IS THE IMMEDIATE HURDLE; 10490-10440 IS THE SUPPORT ZONE

WORLD MARKETS

Dow and S & P 500 climbed 1.5% each while Nasdaq soared 2.1% as shares of some beaten-down tech companies rebounded.

Shares of Facebook, Amazon, Apple, Netflix and Google-parent Alphabet all rose at least 1%. General Motors rose 4% after it revealed plans to cut production at several plants and reduce its salaried workforce by 15%. Retailers rose broadly as Black Friday online sales totaled a record $6.22 billion, a 23.6% jump from last year..

US oil rose 2.4% to $51.63 a barrel. Brent was up 2.9% at $60.48.

European markets gained 1%-2.8%. Media reports suggested that Italy's governing coalition could cut 2019's budget deficit target to as low as 2% of gross domestic product, to dodge a disciplinary procedure from Brussels. On the data front, German ifo Business Climate index dropped to 102.0 points, in comparison to 102.9 points last month.

AT HOME

After falling about a third of a percent in the morning, benchmark indices surged in the noon trade to end higher by a percent. Sensex settled at 35354, up 373 points while Nifty added 101 points to finish at 10628. Broader market however underperformed, with BSE mid-cap index rising just 0.1% and small-cap index ending lower by 0.2%. BSE FMCG index and Bankex climbed 2.2% and 1.3% respectively, becoming top gainers among the sectoral indices while Metal and Healthcare indices were the top losers, down 1.3% and 0.9% respectively.

FIIs net bought stocks and stock futures worth Rs 446 cr and 475 cr respectively but net sold index futures worth Rs 168 cr. DIIs were net buyers to the tune of Rs 50 cr.

Rupee depreciated 20 paise to end at 70.87/$.

OUTLOOK

Today morning, Nikkei and Shanghai are up 0.2% and 0.3% respectively but Hang Seng is down 0.4%. SGX Nifty is suggesting about 50 points lower start for our market.

After Nifty broke 10625 support, we had given downside target of 10440. Yesterday, Nifty, after touching a low of 10490, rebounded to end at 10628 but is set to open below 10600 today.

10665, the 61.8% retracement level of the recent 10775-10490 fall, is the immediate hurdle to eye, a crossover of which is required for a fresh upmove. If that happens, 10775, the top made last week, would be the next target to eye.

10489, the low made yesterday, roughly coincided with the 20-day moving average and 10440 is the bottom made on 13th November, making 10490-10440 immediate support zone.