NIFTY REBOUNDS FROM THE VICINITY OF 10400 SUPPORT; 10710 ABOVE 10645

NIFTY REBOUNDS FROM THE VICINITY OF 10400 SUPPORT; 10710 ABOVE 10645

WORLD MARKETS

Dow and S & P 500 fell 0.4% and 0.2% respectively while Nasdaq ended flat.

Energy stocks fell the most as WTI crude collapsed $4.24 or 7.1% to $55.69 a barrel, extending the losing streak to 12th consecutive day and hitting a one year low after Trump said he hoped OPEC would not cut oil production in order to lift prices. Brent fell $4.28 or 6.1% to $65.84.

Stocks hit session high earlier in the day after media reports suggested that Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He had resumed trade talks.

Dollar index fell more than half a percent to 96.96.

European markets, except a flat FTSE, gained 0.8%-1.3%.

AT HOME

It was a mirror image of Monday's trade as benchmark indices, after starting lower by about 0.4%, surged just under a percent and half from the bottom of the day to end higher by a percent. Sensex settled at 35144, up 331 points while Nifty added 100 points to finish at 10582. BSE mid-cap and small-cap indices gained 0.3% and 0.2% respectively. BSE Energy and Oil & Gas indices climbed 1.9% and 1.8% respectively, becoming top gainers among the sectoral indices. Healthcare and Realty indices were the top losers, down 0.8% and 0.6% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 495 cr, 111 cr and 604 cr respectively. DIIs were net buyers to the tune of Rs 336 cr.

Rupee appreciated 22 paise to end at 72.67/$.

Sun Pharma reported operationally in line numbers but revenue missed estimate. Tata Steel reported better-than-expected topline while adjusted margins were in-line with estimates. Adjusted EBIDTA/tone for Indian operation was better-than-expected.

OUTLOOK

Today morning, Nikkei is up 0.4% but Hang Seng and Shanghai are modestly lower. SGX Nifty is suggesting about 25 points higher start for our market.

In yesterday's report we had reiterated the view that "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".

Nifty, after touching a low of 10440 in the initial trade, rebounded sharply to end at 10582 and is set to open above 10600 today.

10645, the top made on Monday, is the immediate hurdle to eye above which 10710, the top made in mid-October, would be the next resistance. 10400 continues to be immediate support.

M & M will report its quarterly earnings today.