10710, 10760 ABOVE 10645; 10440 CONTINUES TO BE IMMEDIATE SUPPORT

10710, 10760 ABOVE 10645; 10440 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.8%-1.7%, with the S & P 500 and Dow snapping 5-day and 4-day losing streak respectively as Apple and JP Morgan led the gains.

A report that representatives from US and China have intensified efforts to reach an agreement in the growing trade war, also boosted the sentiment. China reportedly responded to Washington's requests to deal with a range of American grievances, and the possibility of concessions was reviewed.

Initial claims for state unemployment benefits rose 2,000 to 216,000 for the week ended Nov. 10. Retail sales rose 0.8%, higher than the 0.5% expected.

US crude rose 21 cents to $56.46 while Brent added 42 cents to $66.54 a barrel.

Sterling plunged 1.6% against the dollar after UK Brexit Secretary Dominic Raab resigned from his post, saying he could not reconcile with the terms of Theresa May's proposed Brexit deal, after the promises the ruling Conservative Party made to the country in an election manifesto last year. .

European markets, except 0.1% higher FTSE, fell 0.4%-0.7%.

AT HOME

Benchmark indices gained about a third of a percent to close at the highest level since 3rd October 2018. Sensex added 118 points to settle at 35260 while Nifty finished at 10616, up 40 points. BSE mid-cap index rose 0.7% while small-cap index ended flat.  BSE Consumer Durables and Realty indices climbed 1.6% each, becoming top gainers among the sectoral indices while Telecom index tumbled 1.2%, becoming top loser, followed by 0.6% lower Utilities index.

FIIs net bought stocks and index futures worth Rs 2043 cr and 419 cr respectively but net sold stock futures worth Rs 568 cr. DIIs were net sellers to the tune of Rs 165 cr.

Rupee appreciated 33 paise to end at 71.98/$.

India's trade deficit widened to USD 17.13 bn in October from $13.98 bn in September. Exports rose 17.9% y-o-y to $26.98 bn and imports rose 17.6% to $44.11 bn.

OUTLOOK

Today morning, Hang Seng and Nikkei are down 0.5% and 0.2% respectively while Shanghai is up 0.2%. SGX Nifty is suggesting about 30 points higher start for our market.

In yesterday's report we had reiterated the view that 10645, the top made on Monday, is the immediate hurdle, upon crossover of which 10710 and 10760 would be next upside targets to eye.

Yesterday, Nifty, after touching a high of 10646, eased to close at 10616 and is set to open around 10645 today.

As mentioned above, upon sustained trading above 10645, 10710 and 10760 would be next upside targets to eye where 10710 is the top made in mid-October while 10760 is where the 200-DMA is placed.

10440-10400 continues to be immediate support zone.