Tuesday, January 15, 2019

10800 IS THE IMMEDIATE HURDLE; 10692 IMMEDIATE SUPPORT


10800 IS THE IMMEDIATE HURDLE; 10692 IMMEDIATE SUPPORT

WORLD MARKETS

US indices fell 0.4%-0.9% on concerns that corporate earnings growth might slow down and worries over an economic slowdown in China.

Official data from China showed imports fell 7.6% year-on-year in December, as against expectation of a 5% rise and exports unexpectedly dropped 4.4%, defying projections of a 3% gain. 

Fourth-quarter earnings season kicked off yesterday, with Citigroup reporting stronger-than-expected earnings.

US crude fell 2.1% to $50.51 and Brent eased 2.5% to $59 a barrel.

European markets fell 0.3%-0.9%.

AT HOME

After falling nearly a percent, benchmark indices recouped nearly half of the losses in noon trade to end lower by about half a percent, extending the losing streak to third straight day. Sensex fell 156 points to settle at 35853 while Nifty finished at 10737, down 57 points. BSE mid-cap and small-cap indices fell 0.5% and 0.4% respectively. BSE Capital Goods and Telecom indices tumbled 1.9% and 1.4% respectively, becoming top losers among the sectoral indices while Healthcare and IT indices were the top gainers, up 0.4% and 0.1% respectively.

FIIs net sold stocks and index futures worth Rs 732 cr and 990 cr respectively but net bought stock futures worth Rs 558 cr. DIIs were net buyers to the tune of Rs 527 cr.

Rupee depreciated 44 paise to end at 70.93/$.

India's wholesale price inflation, measured by WPI, eased to eight-month low of 3.8% in December, as compared to 4.64% in November, due to cheaper food and fuel prices.

Retail inflation hit an 18-month low, rising 2.19% in December as compared with 2.3% in November due to cheaper fuel and food items.

OUTLOOK

Today morning, Nikkei and Hang Seng are up about half a percent while Shanghai is flat. SGX Nifty is suggesting about 40 points higher start for our market.

In yesterday's report we had said that 10870, the top made last week, was the immediate hurdle while 10710, where an upward sloping trendline adjoining recent bottoms on the daily chart is placed, was the immediate support.

Nifty, after touching a low of 10692, rebounded to close at 10737 and is set to open above 10750 today.

10800 is the immediate hurdle on the hourly chart above which 10870, the top made last week, would be the bigger hurdle to eye.

10692, the low made yesterday, is the immediate support, a breach of which would confirm a "sell" on the hourly chart and would pave the way for further fall. 10600, in the vicinity of which an upward sloping trendline adjoining bottoms made in October and December is placed, would be the next support to eye if that happens.

ZEE Entertainment will report its quarterly earnings today.

Lawmakers in UK will today vote on U.K. Prime Minister Theresa May's Brexit deal to leave the European Union. The vote is widely expected to be defeated in parliament. That leaves the prospect of a complete collapse of government, a disorderly exit from the bloc or even the entire Brexit process being scrapped altogether over the coming weeks.

Monday, January 14, 2019

10870 IS THE IMMEDIATE HURDLE; 10710 NEAREST SUPPORT


10870 IS THE IMMEDIATE HURDLE; 10710 NEAREST SUPPORT

WORLD MARKETS

Dow and S & P 500 ended flat while Nasdaq fell 0.2% on Friday on the back of an ongoing U.S. government shutdown and worries about an economic slowdown in China.

The federal government remained partially closed on Friday for a 21st straight day, stoking fears the shutdown could drag on for a long time.

On Thursday, Federal Reserve Chairman Jerome Powell said that warnings shows the Chinese economy is slowing.

WTI and Brent oil fell 1.9% each to $51.59 and $60.53 a barrel respectively, breaking 9-day winning streak. Trump said he will "probably" declare a national emergency if the White House and Congress cannot reach a deal to end the shutdown.

European market fell upto 0.5%. GDP figures showed the U.K. economy slowed down in the three months to November — hitting its weakest pace in six months.

For the week, US indices climbed 2.4%-3.4%, extending the winning streak to third straight week. European markets gained 0.9%-1.2%. In Asia Nikkei and Hang Seng soared 4% each while Shanghai rose 1.6%.

AT HOME

Benchmark indices ended lower by a fourth of a percent after a choppy session, extending the losing streak to second straight day. Sensex settled at 36009, down 97 points while Nifty lost 26 points to finish at 10794. BSE mid-cap and small-cap indices fell 0.1% and 0.2% respectively. Except 0.5% and 0.1% higher FMCG and Oil & Gas indices respectively and a flat Metal index, all the BSE sectoral indices ended in red, with Realty and Telecom indices leading the losses, down 1.4% and 1.1% respectively.

FIIs net sold stocks and index futures worth Rs 687 cr and 540 cr respectively but net bought stock futures worth Rs 205 cr. DIIs were net buyers to the tune of Rs 123 cr.

Rupee depreciated 7 paise to end at 70.48/$.

India's industrial production, as represented by IIP, grew by just 0.5% in November, as against 8.1% in October, marking the slowest growth in 17-months.

Infosys reported a beat on revenue while margins were a miss. Constant currency revenue growth stood at 2.7% q-o-q and 10.1% y-o-y. Rupee revenue rose 1.4% q-o-q  to Rs 21400 cr. Margins however contracted 110 bps q-o-q to 22.6% and Net profit fell 12.2% to Rs 3609 cr. The company hiked its constant currency revenue growth guidance to 8.5%-9% from earlier 6-8%. Margin guidance was maintained at 22-24$.

For the week, Sensex and Nifty gained 0.9% and 0.6% respectively.

OUTLOOK

Today morning, Nikkei is shut while Hang Seng and Shanghai are down 1.2% and 0.4% respectively. SGX Nifty is suggesting a flattish start for our market.

Nifty has been repeatedly getting resisted at the downward sloping trendline adjoining recent tops on the daiy chart that we have been mentioning for past couple of sessions.

On Friday, after touching a high of 10850, Nifty retreated to end at 10794 and is set to open around 10800 today.

10870, the top made last week, is now the immediate hurdle to eye, upon crossover of which, 10985, the top made on 19th December, would be the next target to eye.

An upward sloping trendline adjoining recent bottoms on the daily chart presents a support around 10710, below which, 10628, the bottom made on 4th January, would be the next support.

India's CPI for November would be out today and is expected to show a reading of 2.26% v/s 2.33%. Core inflation is expected to be 5.4%-5.6% as against 5.8%. WPI for November would also be released today and is expected at 4.57% v/s 4.6% in the previous month.

Friday, January 11, 2019

10880 IS THE IMMEDIATE HURDLE; 10733 IMMEDIATE SUPPORT


10880 IS THE IMMEDIATE HURDLE; 10733 IMMEDIATE SUPPORT

WORLD MARKETS

US indices, after opening with cuts of nearly a percent, rebounded through the session to end with gains of 0.4%-0.5%, extending the winning streak to fifth straight day

However, retail sector, led by Macy's, fell. Macy's shares tanked more than 18% — their worst day ever — after reporting same-store sales growth of just 1.1% in November and December and cutting its earnings and revenue forecast for fiscal 2018. American Airlines fell more than 4% after slashing its revenue growth forecast for the fourth quarter.

Markets also weighed the possibility of a prolonged U.S. federal government shutdown. Earlier on Thursday, President Trump tweeted he would skip the annual World Economic Forum in Davos due to the shutdown.

China's commerce ministry, after the conclusion of trade negotiations with the US on Wednesday, said yesterday that the negotiations were extensive and had helped set up a foundation for further talks.

US crude rose 23 cents to $52.59 a barrel while Brent gained 30 cents to reach $61.74,

European markets, except a 0.2% lower CAC, gained 0.3%-0.6%.

AT HOME

Benchmark indices ended lower by three tenth of a percent, breaking 4-day winning streak. Sensex lost 106 points to settle at 36106 while Nifty finished at 10821, down 33 points. BSE mid-cap and small-cap indices however gained 0.5% and 0.2% respectively. BSE Oil & Gas index and Bankex fell 0.8% each, becoming top losers among the sectoral indices while Consumer Durable index rose 0.7%, becoming top gainer, followed by 0.5% higher Healthcare and industrial indices.

FIIs net sold stocks worth Rs 345 cr but net bought index futures and stock futures worth Rs 426 cr and 322 cr respectively. DIIs were net buyers to the tune of Rs 11 cr.

Rupee appreciated 4 paise to end at 70.41/$.

TCS delivered mixed set of earnings where revenue was in-line but margin was a miss. Constant currency revenue growth stood at 1.8% q-o-q, which was highest in 14 quarters. Margin however dipped 90 bps to 25.6% on the back of cross currency headwind and higher cost of doing business.

OUTLOOK

Today morning, Nikkei and Shanghai are up 0.7% and 0.2% respectively while Hang Seng is little changed. SGX Nifty is suggesting about 30 points higher start for our market.

For past couple of sessions, we have been mentioning that, 10890, where a downward sloping trendline adjoining recent tops is placed, is the immediate hurdle, a crossover of which is required for a fresh upmove.

After getting resisted at 10870 on Wednesday, yesterday too, after making a high of 10860, slipped to end at 10821, and is set to open around 10850 today.

The downward sloping trendline has moved lower to 10880, which is now the immediate hurdle to eye. Once that is taken out, 10985, the top made on 19th December, would be the next target to eye. 10733, the low made on Tuesday, continues to be immediate support.

Infosys will report its quarterly earnings today. November IIP will be out today and is expected to show a growth of 3.84%, much lower than 8.1% uptick registered in October.

Thursday, January 10, 2019

10985 ABOVE 10890; 10733 CONTINUES TO BE IMMEDIATE SUPPORT


10985 ABOVE 10890; 10733 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

Dow and S & P 500 gained 0.4% each while Nasdaq climbed 0.9%, extending the winning streak to fourth straight day, as minutes of the latest Fed meeting reiterated comments from the central bank's chairman from last week about patience regarding monetary policy.

Equities pared gains in the last hour of trading after Trump termed meeting with   Democratic leadership over the shutdown "a total waste of time". Meanwhile, ratings agency Fitch warned it may cut the U.S.' triple-A rating if the shutdown continues.

The Fed minutes pointed to a backdrop of low inflation in the U.S. and also indicated that some Fed officials think a "relatively limited amount" of rate hikes may be coming.

Discussions over trade between mid-level officials from Washington and Beijing concluded on yesterday. U.S. trade officials said in a statement they will report back to the White House for further guidance on the talks.

US crude surged 5.2% to $52.36 a barrel and Brent rose 4.3% to $61.27 on OPEC production cuts and U.S.-China trade talks.

European markets gained 0.7%-0.9%.

AT HOME

Sensex and Nifty ended with gains of 0.6% and 0.5% respectively after an extremely volatile late noon trade, extending the winning streak to fourth straight day. Sensex settled at 36212, up 231 points while Nifty added 53 points to finish at 10855. BSE mid-cap and small-cap indices however ended lower by 0.04% and 0.2% respectively. BSE FMCG index climbed 1.1%, becoming top gainer among the sectoral indices, followed by 0.7% higher Bankex and Realty index. Oil & Gas and Metal indices were the top losers, down 1.7% and 1.2% respectively.

FIIs net bought stocks and index futures worth Rs 276 cr and 461 cr respectively but net sold stock futures worth Rs 366 cr. DIIs were net buyers to the tune of Rs 440 cr.

Rupee depreciated 26 paise to end at 70.46/$, closing at the lowest level since December 17.

Indusind Bank reported better-than-expected net profit, aided by higher other income, while NII growth came in slightly lower-than-expected and asset quality deteriorated. Net profit rose 5.2% y-o-y to Rs 985 cr. NII rose 21% to RS 2288 cr. Provisions grew 157% to Rs 607 cr. Gross bad loan ratio expanded to 1.13% from 1.09% percent in the previous quarter. Net bad loan ratio, too, expanded to 0.59% from 0.48%.

OUTLOOK

Today morning, Nikkei is down a percent and half while Hang Seng and Shanghai are off 0.7% and 0.1% respectively. SGX Nifty is suggesting about 20 points higher start for our market.

For past couple of sessions, we have been mentioning that, 10890, where a downward sloping trendline adjoining recent tops is placed, is the immediate hurdle, a crossover of which is required for a fresh upmove.

Nifty, yesterday, after touching a high of 10870, plunged sharply to 10749, only to rebound equally sharply later to end at 10855. The benchmark is slated to open around yesterday's high today.

10890 continues to be immediate hurdle, upon crossover of which, 10985, the top made on 19th December, would be the next target to eye. 10733, the low made on Tuesday, continues to be immediate support.

Wednesday, January 9, 2019

10890 CONTINUES TO BE IMMEDIATE HURDLE; 10733 NEAREST SUPPORT


10890 CONTINUES TO BE IMMEDIATE HURDLE; 10733 NEAREST SUPPORT

WORLD MARKETS

US indices climbed 1%-1.1%, extending the winning streak to third straight day, on optimism over US-China trade deal.

Apple shares rose 1.9 percent after CEO Tim Cook tried to assuage some of the concerns plaguing the tech giant. Other technology shares including Amazon, Facebook, Netflix and Alphabet also gained.

Negotiations between the world's two largest economies extended into an unscheduled third day. U.S. President Donald Trump tweeted that the trade talks are "going very well."

US crude rose $1.26 or 2.6% to $49.78 a barrel while Brent gained $1.29 or 2.3% to $58.62.

European markets gained 0.2%-1.2%. The euro zone business climate index dropped to 0.82 in December from 1.04 in the previous month.

AT HOME

After falling about a third of a percent at the open, benchmark indices gained about two third of a percent from the bottom to end with gains of nearly a third of a percent, extending the winning streak to third consecutive day. Sensex settled at 35980, up 130 points while Nifty finished at 10802, up 30 points. BSE mid-cap index however fell 0.2% and small-cap index gained 0.2%, underperforming main indices. BSE Telecom index and Bankex climbed 1.3% each, becoming top gainers among the sectoral indices while Utilities and Capital Goods indices fell 0.4% each, becoming top losers.

FIIs net sold stocks and index futures worth Rs 554 cr and 418 cr respectively but net bought stock futures worth Rs 228 cr. DIIs were net buyers to the tune of Rs 698 cr.

Rupee depreciated 52 paise to end at 70.20/$.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.5%-1.4% and SGX Nifty is suggesting about 60 points higher start for our market.

In yesterday's report we had reiterated the view that 10890 continued to be immediate hurdle while 10741, the lower end of the gap created by Monday's gap-up opening, was the immediate support.

Nifty, after touching a low of 10733, rebounded to close at 10802 and is set to open above 10850 today.

10890, where a trendline adjoining recent tops on the daily chart is placed, continues to be immediate hurdle to eye, upon crossover of which, 10985, the top made on 19th December, would be the next upside target.

10733, the low made yesterday, is the immediate support.

Indusind Bank will report its quarterly earnings today.

Tuesday, January 8, 2019

10890 CONTINUES TO BE IMMEDIATE HURDLE; 10741 IMMEDIATE SUPPORT


10890 CONTINUES TO BE IMMEDIATE HURDLE; 10741 IMMEDIATE SUPPORT

WORLD MARKETS

After opening in the red, US indices rebounded through the session to end with gains of 0.4%-1.3%, keeping an eye on the trade talks between US and China.

Two day trade negotiations between US and China began yesterday. According to a spokesman at the Chinese foreign ministry, China said that it is willing to resolve its trade disputes with the U.S. on an equal footing.

Earlier, on Sunday, US President Trump said that weakness in the Chinese economy gave Beijing an extra incentive to work toward a resolution to the global trade war.

US oil rose 56 cents or 1.2% to $48.52 and Brent added 27 cents or 0.5% to reach $57.33 a barrel.

In Europe FTSE, CAC and DAX fell 0.2%-0.4% but Italy and Spain gained 0.6% and 0.4% respectively. Data from Germany showed that industrial orders dropped by more than expected in November.

AT HOME

After gaining nearly a percent in the initial trade, benchmark indices gave away nearly half of the gains through the session to end higher by about half a percent. Sensex settled at 35850, up 155 points while Nifty added 49 points to finish at 10776. BSE mid-cap and small-cap indices ended marginally higher, gaining 0.03% and 0.06% respectively. BSE Realty and Telecom indices climbed 1.6% and 1.3% respectively, becoming top gainers among the sectoral indices while Healthcare and Metal indices were the top losers, down 0.4% and 0.2% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 736 cr, 408 cr and 125 cr respectively. DIIs were net sellers to the tune of Rs 142 cr.

Rupee appreciated 4 paise to end at 69.68/$.

According to the first advance estimates released by the Central Statistics Office, GDP growth is expected at 7.2% in 2018-19 compared to 6.7% last year, which would be fastest in three years. Gross Value Added, which strips out indirect tax and subsidies, is expected to grow at 7% compared to 6.5%.

OUTLOOK

Today morning, Nikkei is up 0.6% while Hang Seng and Shanghai are down about 0.25% each. SGX Nifty is suggesting a marginally lower start for our market.

In yesterday's report, we had said that "A trendline adjoining recent tops on the daily chart is placed around 10890 and that would be the immediate hurdle to eye."

Nifty, after touching a high of 10835 in the initial trade, slipped to end at 10771 and is set to open little changed today.

10890 continues to be immediate hurdle to eye. 10741, the lower end of the gap created by yesterday's gap-up opening, is the immediate support below which, 10628, the low made last week, would be the important support to eye.

Monday, January 7, 2019

10890 IS THE IMMEDIATE HURDLE; 10628 IMMEDIATE SUPPORT


10890 IS THE IMMEDIATE HURDLE; 10628 IMMEDIATE SUPPORT

WORLD MARKETS

US indices soared 3.3%-4.3% on Friday on the back of Fed Chair Powell's comments and a blowout jobs report.

Federal Reserve Chairman Jerome Powell said the central bank will be patient in raising rates, quelling fears of tighter monetary policy in the near future. Powell added the central bank would not "hesitate" to change its balance-sheet reduction plan if it was causing problems.

U.S. economy added 312,000 jobs in December, much higher than the expected figure of 176,000. Later.

Also boosting the sentiment was the statement from China's commerce ministry that the U.S. and Chinese would hold vice-ministerial level negotiations over trade in Beijing on Jan. 7-8.

US crude rose 1.9% to $47.96 while Brent gained 2% to reach $57.06 a barrel.

European markets climbed 2.2%-3.4%. IHS Markit's euro zone composite final PMI fell to 51.1 in December, down from 52.7 in the previous month. The euro zone December inflation rate, meanwhile, fell steeper than was expected, to 1.6%, down from November's 1.9%. British house prices in December fell 0.7 percent from the previous month, the biggest monthly fall since July 2012.

AT HOME

Benchmark indices ended higher by half a percent after a volatile session, breaking two-day losing streak. Sensex added 181 points to settle at 35695 while Nifty finished at 10727, up 55 points. BSE mid-cap and small-cap indices gained 0.5% and 0.1% respectively.  BSE Telecom index climbed 2.7%, becoming top gainer among the sectoral indices, followed by 1.4% higher Metal index. IT and Teck indices were the top losers, down 1.2% and 0.6% respectively.

FIIs net sold stocks and index futures worth Rs 158 cr and 351 cr respectively but net bought stock futures worth Rs 145 cr. DIIs were net buyers to the tune of Rs 241 cr.

Rupee appreciated 47 paise to end at 69.72/$.

For the week, Sensex and Nifty fell 1% and 1.2% respectively.

India's December Nikkei services PMI eased to 53.2 from 53.7 in November. Composite PMI fell to 53.6 from 54.5.

OUTLOOK

Today morning, Nikkei is up 3% while Hang Seng and Shanghai are up 1.5% and 0.7% respectively. SGX Nifty is suggesting about 100 points higher start for our market.

Readers would recall that we had given downside targets of 10660, followed by 10534, after Nifty broke the immediate support of 10735. Nifty, after touching a low of 10628, rebounded to end at 10727 and is set to open above 10800 today.

A trendline adjoining recent tops on the daily chart is placed around 10890 and that would be the immediate hurdle to eye. If that is taken out, 10985, the top made on 19th December, would be the next target/hurdle to eye.

10628, the bottom made on Friday, is now the immediate support below which, 10534, the bottom made on 26th December, would be the next downside support.

Friday, January 4, 2019

NIFTY ACHIEVES 10660 TARGET; 10825 IS THE IMMEDIATE HURDLE


NIFTY ACHIEVES 10660 TARGET; 10825 IS THE IMMEDIATE HURDLE

WORLD MARKETS

US indices nosedived 2.5%-3% amid fears of a slowing global economy and weaker-than-expected reading on U.S. manufacturing.

The sell-off was led by Apple, which saw its stock plunge nealy 10%, its worst session since 2013, after cutting its revenue guidance on Wednesday. The iPhone maker attributed most of the predicted revenue shortfall for struggling business in China. Chip stocks Advanced Micro Devices, Nvidia, Skyworks and Qorvo all dropped on the Apple warning.

ISM's manufacturing index fell to 54.1 in December, way below the expected 57.9 mark.

Dollar index fell about half a percent to 96.27.

European markets fell 0.6%-1.7%. the IHS Markit/CIPS U.K. Construction Purchasing Managers' Index (PMI) fell to 52.8 in December, down from 53.4 in the previous month.

US crude rose 1.2% or 55 cents to $47.09 a barrel and Brent gained 91 cents or 1.7% to $55.82, helped by dollar weakness and signs of output cuts by Saudi Arabia.

AT HOME

Benchmark indices suffered another 1% plunge, extending the losing streak to second consecutive day. Sensex settled at 35513, down 377 points while Nifty lost 120 points to finish at 10672. BSE mid-cap and small-cap indices fell 1% and 0.6% respectively. Except 0.6% and 0.1% higher Telecom and FMCG indices respectively, all the BSE sectoral indices ended in red with Metal and Oil & Gas indices leading the losses, down 2.4% and 1.8% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 973 cr, 477 cr and 913 cr respectively. DIIs were net sellers to the tune of Rs 35 cr.

Rupee depreciated 2 paise to end at 70.19/$.

OUTLOOK

Today morning, Nikkei is down nearly 4% while Hang Seng and Shanghai are off 0.5% and 0.7% respectively. SGX Nifty is suggesting about 10 points lower start for our market.

In yesterday's report we had said that 10735, the low made Wednesday was the immediate support, upon breach of which, 10660, the two-third retracement level of the recent 10534-10923 upmove, would be the next downside target.

Nifty broke 10735 support and plunged all the way to 10661 before closing at 10672, achieving 10660 target and vindicating our view.

10660 continues to be immediate support, upon breach of which, 10534, the bottom made on 26th December, would be the next downside target/support to eye.

Immediate resistance on the hourly chart is placed around 10825, with the stop-loss of which, trading shorts should be held on to.

Thursday, January 3, 2019

NIFTY REBOUNDS FROM EXPECTED SUPPORT ZONE


NIFTY REBOUNDS FROM EXPECTED SUPPORT ZONE

WORLD MARKETS

US indices, after opening with cuts of nearly a percent and half on global growth concerns, recouped all the losses to end with gains of 0.1%-0.5%.

The lower start was attributed to global growth concerns after China's Markit Manufacturing Purchasing Managers' Index (PMI) for December dipped to 49.7 from 50.2 in November, implying a contraction for the first time in 19 months.

Economic data from Europe and US itself were weak too. In the U.S., the IHS Markit manufacturing PMI slipped to a 15-month low in December. The euro zone manufacturing PMI came in at 51.4, down from 51.8 in the previous month and the lowest reading since February 2016, according to IHS Markit. The data also showed confidence about the future hit a fresh six-year low.

Adding fuel to the fire were news reports that US trade representative Robert Lighthizer has warned Trump that additional tariffs may be needed to get meaningful concessions from the Chinese.

US crude rose $1.13, or 2.5%, to $46.54. Brent added $1.13, or 2.1%, to $54.93 a barrel after tanker-tracking data showed a big drop in Saudi Arabia's crude oil exports in December.

Dollar index jumped nearly half a percent to 96.66.

European markets, except 0.9% lower CAC, ended marginally higher.

AT HOME

Benchmark indices nosedived a percent, with Nifty breaking five-day winning streak. Sensex finished at 35891, down 363 points while Nifty lost 117 points to settle at 10792. BSE mid-cap and small-cap indices fell 1.3% and 0.7% respectively.  Except 0.3% and 0.03% higher IT and Teck indices respectively, all the BSE sectoral indices ended in red with Metal and Auto indices leading the losses, down 3.4% and 3% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 621 cr, 817 cr and 970 cr respectively. DIIs were net sellers to the tune of Rs 226 cr.

Rupee plunged 72 paise to end at 70.17/$.

Eicher Motor nosedived 9.4% after Royal Enfield sales declined 13% to 58278 in December.

OUTLOOK

Shares of Apple Inc. are trading with deep cuts of about 7% after it lowered its first quarter guidance and warned of weaker sales in China. Owing to this, US futures are down 1-2%.

Nikkei is shut today while Shanghai and Hang Seng are up 0.5% and 0.4% respectively. SGX Nifty is suggesting about 30 points higher start for our market.

For past couple of sessions, we have been mentioning that 10985 is the important immediate hurdle, a crossover of which is required for a fresh upmove and 10764-10747 is the immediate support zone.

Nifty, after touching a high of 10923 on Tuesday, slipped to 10735 yesterday, from where it rebounded to close at 10792 and is set to open above 10800 today.

10985, the top made on 19th December, continues to be immediate hurdle. 10735, the low made yesterday, which roughly coincided with our indicated support zone and 34-DMA placed around 10750, is the immediate support, upon breach of which 10660, the two-third retracement level of the recent 10534-10923 upmove, would be the next downside target.