10985 CONTINUES TO BE IMMEDIATE HURDLE; 10764-10747 CONTINUES TO BE SUPPORT ZONE

10985 CONTINUES TO BE IMMEDIATE HURDLE; 10764-10747 CONTINUES TO BE SUPPORT ZONE

WORLD MARKETS

US and European markets were shut yesterday for the New Year's Day.

Chinese President Xi Jinping told U.S. President Donald Trump on Tuesday that history showed cooperation was the best way forward for both the United States and China.

AT HOME

After falling about half a percent, benchmark indices soared a percent from the bottom of the day in late noon trade to end higher by half a percent. Sensex added 186 points to settle at 36254 while Nifty finished at 10910, up 47 points. BSE mid-cap and small-cap indices gained 0.1% and 0.4% respectively. BSE Realty and Telecom indices climbed 2.2% and 1.5% respectively, becoming top gainers among the sectoral indices while Metal and Auto indices were the top losers, down 0.7% and 0.5% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 48 cr, 476 cr and 83 cr respectively. DIIs were net buyers to the tune of Rs 143 cr.

Rupee appreciated 32 paise to end at 69.45/$, it's strongest finish since August 10.

GST collections for the month of December fell to Rs 94700 cr versus previous month's mop-up of Rs 97600 cr.

Tata Motor reported 8% dip in December sales at 50440 units. Eicher Motors posted 13% dip in Royal Enefield sales at 58278 units. Maruti posted 1.3% y-o-y dip in December sales at 1.28 lakh units. M & M's auto sale was up 1% at 39755 units while tractor sales fell 6% to 17404 units. Escort's total sales surged 27.5% to 4598 units and tractor sales were up 21.2% at 4212 units. Atul Auto sales rose 50% to 4332 units.

OUTLOOK

Today morning, Nikkei is shut while Hang Seng and Shanghai are down 1.2% and 0.6% respectively. SGX Nifty is suggesting a marginally lower start for our market.

In yesterday's report, we had reiterated the view that, 10985 continues to be important immediate hurdle while 10764-10747 continues to be immediate support zone.

Nifty, after touching a low of 10807, rebounded smartly to end at 10910 and is set to open flat today.

10985, the top made on 19th December, continues to be immediate hurdle, upon crossover of which, 11090, the 61.8% retracement level of the entire 11760-10004 fall, would be the next target to eye.

10764-10747, the gap created by Thursday's gap-up opening, continues to be immediate support.