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.