NIFTY RETREATS FROM 10645 HURDLE

 NIFTY RETREATS FROM 10645 HURDLE

WORLD MARKETS

US indices, after a positive start, plunged nearly a percent and half from the top of the day to end with cuts of 0.8%-0.9%, with the S & P 500 extending the losing streak to fifth straight day.

Apple fell 2.8% and briefly traded 20% below its all-time high after brokerage downgrade. Comments from Rep. Bill Pascrell that the updated trade deal between the U.S., Canada and Mexico needs to be changed before it can pass through Congress also hurt the sentiment.

US crude rose 1% to settle at $56.25, breaking 12-day losing streak on the growing prospect of OPEC and allied producers cutting output at a meeting next month. Brent rose 51 cents to $65.08 a barrel.

European markets fell 0.3%-0.8%. The Italian government stuck to its contested 2019 deficit target of 2.4% of gross domestic product (GDP), defying the European Union's call for Rome to revise fiscal targets. Brexit was another area of focus for after news of a key breakthrough between Britain and the EU on a divorce deal. On the data front, dented by weaker export numbers, Europe's largest economy, Germany, shrank by 0.2% between July and September.

AT HOME

It was a day of consolidation as benchmark indices ended flat after a choppy session. Sensex settled at 35141, down 2 points while Nifty lost 6 points to finish at 10576. BSE mid-cap index rose 0.2% while small-cap index fell 0.2%. BSE IT and Teck indices tumbled 2.2% and 1.9% respectively, becoming top losers among the sectoral indices while Oil & Gas and FMCG indices were the top gainers, up 1.2% and 0.9% respectively.

FIIs net bought stocks and index futures worth Rs 277 cr and 92 cr respectively but net sold stock futures worth Rs 1215 cr. DIIs were net sellers to the tune of Rs 272 cr.

Rupee appreciated 36 paise to end at 72.30/$.

India's Inflation based on wholesale prices rose to a four-month high of 5.28% in October, up from 5.13% in September.

M & M's net profit beat expectation but operating margins fell. Revenue rose 6% to Rs 12790 cr, EBITDA fell 4% to Rs 1849 cr, margin contracted to 14.5% from 16%. Net profit rose 26% y-o-y to Rs 1779 cr.

OUTLOOK

Today morning, Hang Seng is up 0.8%, Shanghai is flat while Nikkei is off 0.3%. SGX Nifty is suggesting about 20 points higher start for our market.

In yesterday's report we had said that "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".

Nifty, after touching a high of 10651 in the initial trade, slipped to end at 10576 and is set to open around 10600 today.

10645 continues to be immediate hurdle, upon sustained trading above which, 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.