RETREAT AFTER RECORD HIGHS

RETREAT AFTER RECORD HIGHS

WORLD MARKETS

US indices gained a fifth of a percent to hit fresh record highs as retail shares outperformed.

Retailers rose broadly after Best Buy posted quarterly earnings that beat analyst expectations, and also raised its fiscal 2020 earnings forecast, sending its stock up more than 9%.

Leading negotiators from Washington and Beijing held another phone call on Tuesday morning to discuss how to “resolve core issues,” China’s Ministry of Commerce said. President Donald Trump also said Tuesday the U.S. and China are in the throes of reaching a trade deal.

S&P Case-Shiller index showed home price gains accelerated in September, gaining 3.2% annually. data from the Conference Board showed consumer confidence dipped slightly in November.

Brent crude gained 60 cents or 0.9%, to settle at $64.25 a barrel, while WTI crude gained 40 cents, or 0.7%, to reach $58.41.

In Europe, DAX fell 0.1% while FTSE and CAC rose 0.1% each.

AT HOME

After hitting record highs in the initial trade, Sensex and Nifty tumbled around eight tenth of a percent from the top of the day to end lower by 0.2% and 0.3% respectively. Sesnex settled at 40821, down 68 points while Nifty lost 36 points to finish at 12037. BSE mid-cap and small-cap indices slipped 0.8% and 0.4% respectively. BSE Telecom index nosedived 4.9%, becoming top loser among the sectoral indices, followed by 2% lower Teck index. Bankex and Finance indices were the top gainers, up 0.7% and 0.3% respectively.

FIIs net bought stocks and index futures worth Rs 4678 cr and 3934 cr respectively but net sold stock futures worth Rs 777 cr. DIIs were net sellers to the tune of Rs 4242 cr. Figures in cash segment were impacted by MSCI rebalancing, especially in ICICI Bank.

Rupee appreciated 24 paise to end at 71.48/$.

OUTLOOK

Today morning, Nikkei is up 0.4%, Hang Seng is flat while Shanghai is off 0.3%. SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 12103, the top made in June, was the immediate target on the way up, upon crossover of which, 12350, would be the next major target/resistance to eye.

Nifty touched a high of 12132 in the initial trade but could not sustain opening gains and slipped to end at 12037.

12132, the top made yesterday, is the immediate hurdle, upon crossover of which, 12350, where an upward sloping trendline adjoining tops made in August 2018 and June 2019 is placed, would be the next major target/resistance to eye.

Immediate support on the hourly chart is placed at 11980, with the stop-loss of which, trading longs can be held on to.