10250 CONTINUES TO BE IMMEDIATE SUPPORT; TRAIL-STOP LOSS IN SHORTS TO 10400

10250 CONTINUES TO BE IMMEDIATE SUPPORT; TRAIL-STOP LOSS IN SHORTS TO 10400

WORLD MARKETS                             

US indices fell 0.4%-0.6% on worries that a corporate tax cut could be delayed.

Senate Republicans released their tax plan, which contained several differences from a bill introduced by the House. While the bill also called for the corporate tax rate to be cut to 20% percent from 35 percent, that change would likely only come into effect in 2019,

Dollar index fell. Gold prices rose to $1285, their highest in around three weeks.

Brent crude gained 0.7% to $63.93 and U.S. crude rose 0.8% to $57.27 after Saudi Arabia's foreign minister called for sanctions to be imposed on Iran for its support of terrorism. Oil prices were also supported by planned cuts in crude exports from Saudi Arabia in December.

European markets fell 0.6%-1.5%. Basic resources stock fell the most tracking a drop in metal prices, with nickel down over 2.5%.

AT HOME

After falling nearly a percent from the opening high, benchmark indices recovered nearly half of the lost ground in the noon trade to end marginally higher. Sensex settled at 33251, up 32 points while Nifty added 6 points to finish at 10309. BSE mid-cap and small-cap indices surged 1% and 0.8% respectively. BSE Consumer Durable index soared 3.2%, becoming top gainer among sectoral indices, followed by 0.9% higher Consumer Discretionary Goods & Services indices. Healthcare indices were the top losers, down 0.3% each.

FIIs net sold stocks, index futures and stock futures worth Rs 714 cr, 1112 cr and 2288 cr respectively. DIIs were net buyers to the tune of Rs 231 cr.

Rupee appreciated 1 paise to end at 64.94/$.

Tata Motors reported a three-fold y-o-y jump in September quarter net profit at Rs 2502 cr, driven by better-than-expected JLR's operational performance. Consolidated revenue from operations (net of excise) rose 10.3% to Rs 70,156 crore. Consolidated operating profit was higher by 42.8% at Rs 9,010 crore and margin expanded by 280 basis points to 12.7%.

Auroindo Pharma reported better than expected 29% profit growth at Rs 781 cr. Margins improved 60 bps to 25.2%.

OUTLOOK

Today morning, Nikkei is down nearly a percent, other Asian markets are trading with modest cuts and SGX Nifty is suggesting about 40 points lower start for our market.

After Nifty broke the immediate support of 10380, we have been working with the downside taret of 10250. Nifty, yesterday, after touching a low of 10266, recovered to end at 10309 but is set to open lower today.

10250, the top made in mid-October, continues to be be immediate support below which 10180, where 38.2% retracement level of the 9690-10490 upmove is placed, will be the next support to eye.

Immediate hurdle on the hourly chart has moved to 10400, with the stop-loss of which, trading shorts should be held on to.

Markets will watch out for the announcement from the GST Council meeting in terms of reduction in GST rate on some items and further simplification and easing of regulations.

SBI and M & M will report their quarterly earnings today.