10340-10300 IS THE SUPPORT ZONE; 10490 UPSIDE TARGET

10340-10300 IS THE SUPPORT ZONE; 10490 UPSIDE TARGET

WORLD MARKETS                             

US indices soared 0.5%-1.1% after the Senate Budget Committee approved the Republican tax bill, a crucial step toward a vote in the full chamber later this week. The Senate is due to vote on a tax bill Thursday.

Federal Reserve Chair nominee Jerome Powell, in his testimony said current regulations on the financial sector are "tough enough." He also said he supported the "tailoring" of some regulations to ease the burden on small banks.

US consumer confidence rose to a 17-year high in November. U.S. National Home Price NSA Index rose 6.2% in September, according to S&P CoreLogic Case-Shiller.

North Korea launched a likely intercontinental ballistic missile that landed in the Sea of Japan. The launch, the North's first since Sept. 15, came after the U.S. classified North Korea as a country that supported terrorism on Nov. 20.

Oil prices fell with Brent down 0.4% to $63.61 and US crude down 0.2% at $57.99 a barrel.

European markets gained 0.5%-1%

AT HOME

Benchmark indices fell a third of a percent, breaking eight day winning streak. Sensex lost 106 points to settle at 33619 while Nifty finished at 10370, down 29 points. BSE mid-cap and small-cap indices however gained 0.1% and 0.3% respectively. BSE Telecom and Consumer Durable indices fell 1.3% and 0.9% respectively, becoming top losers among sectoral indices while Consumer Discretionary Goods & Services and FMCG indices gained 0.2% and 0.1% respectively.

FIIs net bought stocks and index futures worth Rs 12 cr and 314 cr respectively but net sold stock futures worth Rs 725 cr. DIIs were net sellers to the tune of Rs 428 cr.

Rupee appreciated 9 paise to end at 64.41/$.

OUTLOOK

Today morning, Shanghai is marginally in the green while Nikkei and Hang Seng are up about half a percent. SGX Nifty is suggesting about 25 points higher start for our market.

We have been working with upside target of 10490 after Nifty took out the 10340-10360 resistance zone. Nifty, after touching a high of 10410 yesterday, slipped to end at 10370 but is set to open higher today.

10490 continues to be upside target to eye. 10340-10300 is the support zone. Traders are advised to hold long positions with the stop-loss of 10300.