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.