10180 NEXT; TRAIL STOP-LOSS TO 10350

10180 NEXT; TRAIL STOP-LOSS TO 10350

WORLD MARKETS                             

US indices gained 0.1% each amid dealmaking news, but a decline in GE, coupled with worries about tax reform, capped gains in the major indexes.

Proposed tax cuts were in focus, with President Donald Trump joining the fray and calling for additional amendments in the Republican plan.

GE shares fell 7.2% after the company issued weaker-than-expected guidance for 2018.

Brent crude slid 36 cents to $63.16 a barrel and U.S. crude settled 2 cents higher at $56.76.

European markets fell 0.2%-0.7%. Pound fell 0.6% against the dollar on growing concerns over the future of Theresa May as prime minister as media reports showed that a group of 40 Conservative members of parliament had agreed to sign a letter of no-confidence in the U.K. leader.

AT HOME

After a flattish start, benchmark indices saw a sustained downward move through the session to end lower by about nine tenth of a percent, breaking two-day rising streak. Sensex lost 281 points to settle at 33033 while Nifty finished at 10225, down 97 points. BSE mid-cap and small-cap indices fell 0.2% and 0.4% respectively. Except a 0.2% higher IT index, all the BSE sectoral indices ended in red with Telecom and Metal indices leading the tally, down 1.9% and 1.8% respectively.

FIIs net sold stocks and stock futures worth Rs 234 cr and 339 cr respectively but net bought index futures worth Rs 279 cr. DIIs were net sellers to the tune of Rs 269 cr.

Rupee depreciated 28 paise to end at 65.43/$, the weakest level in six weeks.

India's retail inflation rose to 3.58% in October from 3.28% in September mainly due to an increase in prices of consumer food items.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 0.5% and 0.3% respectively while other Asian markets are modestly lower. SGX Nifty is suggesting about 15 points lower start for our market.

We turned bearish on Nifty after immediate support of 10380 was taken out and had given downside target of 10250, followed by 10180.

The benchmark yesterday tumbled 97 points to finish at 10225, achieving the first target and moving towards the second.

10180, the 38.2% retracement level of the 9690-10490 upmove, continues to be the next downside target as well as the support to eye.

Immediate support on the hourly chart has moved lower to 10350, with the stop-loss of which, trading shorts should be held on to.