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.

10890 CONTINUES TO BE IMMEDIATE HURDLE; 10741 IMMEDIATE SUPPORT

10890 CONTINUES TO BE IMMEDIATE HURDLE; 10741 IMMEDIATE SUPPORT

WORLD MARKETS

After opening in the red, US indices rebounded through the session to end with gains of 0.4%-1.3%, keeping an eye on the trade talks between US and China.

Two day trade negotiations between US and China began yesterday. According to a spokesman at the Chinese foreign ministry, China said that it is willing to resolve its trade disputes with the U.S. on an equal footing.

Earlier, on Sunday, US President Trump said that weakness in the Chinese economy gave Beijing an extra incentive to work toward a resolution to the global trade war.

US oil rose 56 cents or 1.2% to $48.52 and Brent added 27 cents or 0.5% to reach $57.33 a barrel.

In Europe FTSE, CAC and DAX fell 0.2%-0.4% but Italy and Spain gained 0.6% and 0.4% respectively. Data from Germany showed that industrial orders dropped by more than expected in November.

AT HOME

After gaining nearly a percent in the initial trade, benchmark indices gave away nearly half of the gains through the session to end higher by about half a percent. Sensex settled at 35850, up 155 points while Nifty added 49 points to finish at 10776. BSE mid-cap and small-cap indices ended marginally higher, gaining 0.03% and 0.06% respectively. BSE Realty and Telecom indices climbed 1.6% and 1.3% respectively, becoming top gainers among the sectoral indices while Healthcare and Metal indices were the top losers, down 0.4% and 0.2% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 736 cr, 408 cr and 125 cr respectively. DIIs were net sellers to the tune of Rs 142 cr.

Rupee appreciated 4 paise to end at 69.68/$.

According to the first advance estimates released by the Central Statistics Office, GDP growth is expected at 7.2% in 2018-19 compared to 6.7% last year, which would be fastest in three years. Gross Value Added, which strips out indirect tax and subsidies, is expected to grow at 7% compared to 6.5%.

OUTLOOK

Today morning, Nikkei is up 0.6% while Hang Seng and Shanghai are down about 0.25% each. SGX Nifty is suggesting a marginally lower start for our market.

In yesterday's report, we had said that "A trendline adjoining recent tops on the daily chart is placed around 10890 and that would be the immediate hurdle to eye."

Nifty, after touching a high of 10835 in the initial trade, slipped to end at 10771 and is set to open little changed today.

10890 continues to be immediate hurdle to eye. 10741, the lower end of the gap created by yesterday's gap-up opening, is the immediate support below which, 10628, the low made last week, would be the important support to eye.

10890 IS THE IMMEDIATE HURDLE; 10628 IMMEDIATE SUPPORT

10890 IS THE IMMEDIATE HURDLE; 10628 IMMEDIATE SUPPORT

WORLD MARKETS

US indices soared 3.3%-4.3% on Friday on the back of Fed Chair Powell's comments and a blowout jobs report.

Federal Reserve Chairman Jerome Powell said the central bank will be patient in raising rates, quelling fears of tighter monetary policy in the near future. Powell added the central bank would not "hesitate" to change its balance-sheet reduction plan if it was causing problems.

U.S. economy added 312,000 jobs in December, much higher than the expected figure of 176,000. Later.

Also boosting the sentiment was the statement from China's commerce ministry that the U.S. and Chinese would hold vice-ministerial level negotiations over trade in Beijing on Jan. 7-8.

US crude rose 1.9% to $47.96 while Brent gained 2% to reach $57.06 a barrel.

European markets climbed 2.2%-3.4%. IHS Markit's euro zone composite final PMI fell to 51.1 in December, down from 52.7 in the previous month. The euro zone December inflation rate, meanwhile, fell steeper than was expected, to 1.6%, down from November's 1.9%. British house prices in December fell 0.7 percent from the previous month, the biggest monthly fall since July 2012.

AT HOME

Benchmark indices ended higher by half a percent after a volatile session, breaking two-day losing streak. Sensex added 181 points to settle at 35695 while Nifty finished at 10727, up 55 points. BSE mid-cap and small-cap indices gained 0.5% and 0.1% respectively.  BSE Telecom index climbed 2.7%, becoming top gainer among the sectoral indices, followed by 1.4% higher Metal index. IT and Teck indices were the top losers, down 1.2% and 0.6% respectively.

FIIs net sold stocks and index futures worth Rs 158 cr and 351 cr respectively but net bought stock futures worth Rs 145 cr. DIIs were net buyers to the tune of Rs 241 cr.

Rupee appreciated 47 paise to end at 69.72/$.

For the week, Sensex and Nifty fell 1% and 1.2% respectively.

India's December Nikkei services PMI eased to 53.2 from 53.7 in November. Composite PMI fell to 53.6 from 54.5.

OUTLOOK

Today morning, Nikkei is up 3% while Hang Seng and Shanghai are up 1.5% and 0.7% respectively. SGX Nifty is suggesting about 100 points higher start for our market.

Readers would recall that we had given downside targets of 10660, followed by 10534, after Nifty broke the immediate support of 10735. Nifty, after touching a low of 10628, rebounded to end at 10727 and is set to open above 10800 today.

A trendline adjoining recent tops on the daily chart is placed around 10890 and that would be the immediate hurdle to eye. If that is taken out, 10985, the top made on 19th December, would be the next target/hurdle to eye.

10628, the bottom made on Friday, is now the immediate support below which, 10534, the bottom made on 26th December, would be the next downside support.

NIFTY ACHIEVES 10660 TARGET; 10825 IS THE IMMEDIATE HURDLE

NIFTY ACHIEVES 10660 TARGET; 10825 IS THE IMMEDIATE HURDLE

WORLD MARKETS

US indices nosedived 2.5%-3% amid fears of a slowing global economy and weaker-than-expected reading on U.S. manufacturing.

The sell-off was led by Apple, which saw its stock plunge nealy 10%, its worst session since 2013, after cutting its revenue guidance on Wednesday. The iPhone maker attributed most of the predicted revenue shortfall for struggling business in China. Chip stocks Advanced Micro Devices, Nvidia, Skyworks and Qorvo all dropped on the Apple warning.

ISM's manufacturing index fell to 54.1 in December, way below the expected 57.9 mark.

Dollar index fell about half a percent to 96.27.

European markets fell 0.6%-1.7%. the IHS Markit/CIPS U.K. Construction Purchasing Managers' Index (PMI) fell to 52.8 in December, down from 53.4 in the previous month.

US crude rose 1.2% or 55 cents to $47.09 a barrel and Brent gained 91 cents or 1.7% to $55.82, helped by dollar weakness and signs of output cuts by Saudi Arabia.

AT HOME

Benchmark indices suffered another 1% plunge, extending the losing streak to second consecutive day. Sensex settled at 35513, down 377 points while Nifty lost 120 points to finish at 10672. BSE mid-cap and small-cap indices fell 1% and 0.6% respectively. Except 0.6% and 0.1% higher Telecom and FMCG indices respectively, all the BSE sectoral indices ended in red with Metal and Oil & Gas indices leading the losses, down 2.4% and 1.8% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 973 cr, 477 cr and 913 cr respectively. DIIs were net sellers to the tune of Rs 35 cr.

Rupee depreciated 2 paise to end at 70.19/$.

OUTLOOK

Today morning, Nikkei is down nearly 4% while Hang Seng and Shanghai are off 0.5% and 0.7% respectively. SGX Nifty is suggesting about 10 points lower start for our market.

In yesterday's report we had said that 10735, the low made Wednesday was the immediate support, upon breach of which, 10660, the two-third retracement level of the recent 10534-10923 upmove, would be the next downside target.

Nifty broke 10735 support and plunged all the way to 10661 before closing at 10672, achieving 10660 target and vindicating our view.

10660 continues to be immediate support, upon breach of which, 10534, the bottom made on 26th December, would be the next downside target/support to eye.

Immediate resistance on the hourly chart is placed around 10825, with the stop-loss of which, trading shorts should be held on to.

NIFTY REBOUNDS FROM EXPECTED SUPPORT ZONE

NIFTY REBOUNDS FROM EXPECTED SUPPORT ZONE

WORLD MARKETS

US indices, after opening with cuts of nearly a percent and half on global growth concerns, recouped all the losses to end with gains of 0.1%-0.5%.

The lower start was attributed to global growth concerns after China's Markit Manufacturing Purchasing Managers' Index (PMI) for December dipped to 49.7 from 50.2 in November, implying a contraction for the first time in 19 months.

Economic data from Europe and US itself were weak too. In the U.S., the IHS Markit manufacturing PMI slipped to a 15-month low in December. The euro zone manufacturing PMI came in at 51.4, down from 51.8 in the previous month and the lowest reading since February 2016, according to IHS Markit. The data also showed confidence about the future hit a fresh six-year low.

Adding fuel to the fire were news reports that US trade representative Robert Lighthizer has warned Trump that additional tariffs may be needed to get meaningful concessions from the Chinese.

US crude rose $1.13, or 2.5%, to $46.54. Brent added $1.13, or 2.1%, to $54.93 a barrel after tanker-tracking data showed a big drop in Saudi Arabia's crude oil exports in December.

Dollar index jumped nearly half a percent to 96.66.

European markets, except 0.9% lower CAC, ended marginally higher.

AT HOME

Benchmark indices nosedived a percent, with Nifty breaking five-day winning streak. Sensex finished at 35891, down 363 points while Nifty lost 117 points to settle at 10792. BSE mid-cap and small-cap indices fell 1.3% and 0.7% respectively.  Except 0.3% and 0.03% higher IT and Teck indices respectively, all the BSE sectoral indices ended in red with Metal and Auto indices leading the losses, down 3.4% and 3% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 621 cr, 817 cr and 970 cr respectively. DIIs were net sellers to the tune of Rs 226 cr.

Rupee plunged 72 paise to end at 70.17/$.

Eicher Motor nosedived 9.4% after Royal Enfield sales declined 13% to 58278 in December.

OUTLOOK

Shares of Apple Inc. are trading with deep cuts of about 7% after it lowered its first quarter guidance and warned of weaker sales in China. Owing to this, US futures are down 1-2%.

Nikkei is shut today while Shanghai and Hang Seng are up 0.5% and 0.4% respectively. SGX Nifty is suggesting about 30 points higher start for our market.

For past couple of sessions, we have been mentioning that 10985 is the important immediate hurdle, a crossover of which is required for a fresh upmove and 10764-10747 is the immediate support zone.

Nifty, after touching a high of 10923 on Tuesday, slipped to 10735 yesterday, from where it rebounded to close at 10792 and is set to open above 10800 today.

10985, the top made on 19th December, continues to be immediate hurdle. 10735, the low made yesterday, which roughly coincided with our indicated support zone and 34-DMA placed around 10750, is the immediate support, upon breach of which 10660, the two-third retracement level of the recent 10534-10923 upmove, would be the next downside target.

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.

INDIAN EQUITIES END 2018 HIGHER WHILE MOST WORLD INDICES BLEED

INDIAN EQUITIES END 2018 HIGHER WHILE MOST WORLD INDICES BLEED

WORLD MARKETS

Dow soared 1.2% while S & P 500 and Nasdaq gained 0.8% each on the last day of the calendar 2018

In Europe, FTSE fell 0.1% while CAC was up 1.1%. DAX was closed.

Earlier, China's official manufacturing PMI came in at 49.4, lower than the expected 49.9 figure. 

For 2018, S & P 500, Dow and Nasdaq lost 6.2%, 5.6% and 3.9% respectively, logging in their biggest annual losses since 2008. The S&P 500 and Dow fell for the first time in three years, while the Nasdaq snapped a six-year winning streak. In Europe, FTSE and CAC fell 12% each while DAX was down 18%. In Asia, Shanghai plunged 25% while Hang Seng and Nikkei fell 14% and 12% respectively.  Sensex and Nifty gained 5.9% and 3.1% respectively, extending the winning streak to third consecutive year. U.S. crude lost 25%, while Brent was off 20%.

AT HOME

After opening higher by about half a percent, benchmark indices gave away nearly all the gains through the session to end little changed. Sensex settled at 36068, down 8 points while Nifty added 2 points to finish at 10862. BSE mid-cap and small-cap indices gained 0.5% and 0.7% respectively. BSE Metal and Basic Material indices climbed 1.4% and 0.9% respectively, becoming top gainers among the sectoral indices while Telecom and Energy indices were the top losers, down 0.8% and 0.4% respectively.

FIIs net sold stocks and stock futures worth Rs 327 cr and 9 cr respectively but net bought index futures worth Rs 550 cr. DIIs were net buyers to the tune of Rs 322 cr.

Rupee appreciated 17 paise to end at 69.77/$.

For the calendar 2018, Sensex and Nifty gained 5.9% and 3.1% respectively, extending the winning streak to third consecutive year. Nifty mid-cap and small-cap index however, fell 15.5% and 29% respectively.

OUTLOOK

After Nifty crossed the 10840 hurdle, we had said that 10985, the top made on 19th December, was the next target/resistance to eye.

Nifty, after touching a high of 10923, retreated to close at 10862 yesterday.

Going by positive close in the US markets, Nifty is expected to open higher today.

10985 continues to be important immediate hurdle to eye. 10764-10747, the gap created by Thursday's gap-up opening, continues to be immediate support.