10985 CONTINUES TO BE UPSIDE TARGET; SAY LONG WITH THE STOP-LOSS OF 10800

10985 CONTINUES TO BE UPSIDE TARGET; SAY LONG WITH THE STOP-LOSS OF 10800

WORLD MARKETS

US indices soared 1%-1.4% on Friday on the back of progress in trade negotiations between China and the U.S and strong manufacturing data.

News reports suggested that China had offered a six-year increase in U.S. imports during recent trade talks with an aim to reduce the annual U.S. deficit to zero by 2024.

Manufacturing data released by the Fed showed the sector's biggest gain in 10 months in December.

Netflix fell 4% on the back of disappointing guidance for the first quarter of 2019. American Express also fell after reporting disappointing earnings.

US crude surged $1.73 or 3.3% to $53.80, its higest level in 2-months and Brent rose $1.50, or 2.5% to $62.68 per barrel.

European markets climbed 1.2%-2.6%.

For the week, US indices gained 1.5%-1.6%, extending the winning streak to fourth straight week. In Europe, FTSE was down 1.2%, DAX was flat while CAC gained 0.3%. In Asia, Nikkei and Shanghai gained 0.2% each and Hang Seng was up 0.3%.

AT HOME

It was yet another day of consolidation as benchmark indices ended marginally higher after a rangebound but choppy session. Sensex settled at 36386, up 12 points while Nifty added 2 points to finish at 10906. BSE mid-cap and small-cap indices however underperformed significantly, giving away 0.8% and 0.7% respectively. BSE Energy index soared 2.7%, becoming top gainer among the sectoral indices, followed by 0.4% higher Oil & Gas index. Telecom and Healthcare indices were the top losers, down 3.8% and 2% respectively.

FIIs net sold stocks and index futures worth Rs 125 cr and 398 cr respectively but net bought stock futures worth Rs 538 cr. DIIs were net sellers to the tune of Rs 1 cr.

Rupee depreciated 13 paise to end at 71.18/$.

For the week, Sensex and Nifty gained 1% each.

Sun Pharma nosedived after a media report of a new whistle-blower complaint sent to SEBI alleging corporate governance lapses.

OUTLOOK

Today morning, Asian markets are trading with gains of upto 0.4% and SGX Nifty is suggesting about 25 points higher start for our market.

Readers would recall that we have been working with target of 10985 after 10870 level was achieved.

Nifty, on Friday, closed at 10906 and is set to open higher today.

10985, the top made in December, continues to be immediate upside target/resistance to eye.

10800 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

Kotak Mahindra Bank will report its quarterly earnings today.