NIFTY REBOUNDS FROM 10123 SUPPORT; 10252 IS THE IMMEDIATE HURDLE

NIFTY REBOUNDS FROM 10123 SUPPORT; 10252 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

US indices, weighed down by plunge in GE, fell 0.2%-0.6%, with the Dow snapping 6-day winning streak.

General Electric shares fell 6.3%, marking their biggest one-day decline since August 2011. The company had reported earnings on Friday which fell short of market expectations.

Brent crude settled down 38 cents at $57.37 a barrel and U.S. crude rose 6 cents to $51.90.

European markets, except 0.6% lower Spain, ended marginally higher. The Spanish government has urged Catalans to accept its decision to dismiss their secessionist leadership amid speculation that the regional President, Carlos Puigdemont, is planning to press ahead with a unilateral declaration of independence.

AT HOME

After falling nearly a percent from morning highs, benchmark indices recouped most of the losses in noon trade to end higher by four tenth of a percent. Sensex settled at 32507, up 117 points while Nifty added 38 points to finish at 10185. BSE mid-cap and small-cap indices gained 0.4% and 0.1% respectively. BSE Telecom index soared 2.8%, becoming top gainer among sectoral indices, followed by 1.8% higher Energy index. FMCG and Healthcare indices were top losers, down 0.7% and 0.6% respectively.

FIIs net sold stocks and index futures worth Rs 82 cr and 657 cr respectively but net bought stock futures worth Rs 111 cr. DIIs were net buyers to the tune of Rs 308 cr.

Rupee appreciated 2 paise to end at 65.02/$.

Indiabulls Housing reported 26% rise in September quarter net profit at Rs 861 cr. NII rose 27% to Rs 1390 cr. Loan book grew at 33% to Rs 1 lakh cr. Gross NPA stood at a multi-quarter low of 0.78%.

OUTLOOK

Today morning, Asian markets are trading flat to modestly lower and SGX Nifty is suggesting a marginally lower start for our market.

In yesterday's report we had said that 10123, the low made on Muhurat trading day, is the immediate support, with the stop-loss of which, trading longs should be held on to.

Yesterday, Nifty, after touching a low of 10124, rebounded smartly to end at 10185.

10123 continues to be immediate support, upon breach of which 34-DMA, placed around 10010, would be the next important support to eye. 10252, the top made last week, is the immediate hurdle above which 10380-10400 would be the next target area.

Traders are advised to hold long positions with the stop-loss of 10123.

HDFC Bank, Infosys, Ambuja Cement, Asian Paints and ZEEL will report their quarterly earnings today.