NIFTY SET TO TEST 10300 SUPPORT

NIFTY SET TO TEST 10300 SUPPORT

WORLD MARKETS                             

Dow gained 0.4% but S & P 500 ended flat and Nasdaq tumbled 1.3% as technology stocks sold off while financials rose.

The second estimate for third-quarter GDP was revised to 3.3% from 3%. It was also above the 3.2% expected by markets.

Yields on U.S. Treasurys rose as investors took note of better-than-expected GDP numbers and outgoing Federal Reserve Chair Janet Yellen's remarks on the outlook for the U.S. economy. Yellen also said she was "very worried" about the U.S. public debt trajectory.

US crude settled 1.2% lower while Brent fell 0.8% to settle at $63.10 a barrel.

In Europe, FTSE  fell 0.9% while other markets ended with modest gains.

AT HOME

Benchmark indices ended with modest cuts, extending the losing streak to second straight day. Sensex lost 16 points to settle at 33603 while Nifty finished at 10361, down 9 points. BSE mid-cap index fell 0.2% while small-cap index ended flat. BSE Metal index fell 0.6%, becoming top loser among sectoral indices followed by 0.4% lower Bankex and Basic Material indices. Realty and Consumer Durable indices were the top gainers, up 0.7% and 0.6% respectively.

FIIs net sold stocks and stock futures worth Rs 859 cr and 563 cr respectively but net bought index futures worth Rs 1281 cr. DIIs were net buyers to the tune of Rs 771 cr.

Rupee appreciated 9 paise to end at 64.32/$, the strongest level in 10-weeks.

OUTLOOK

Today morning, Nikkei if flat but Hang Seng and Shanghai are down 1.3% and 0.4% respectively. SGX Nifty is suggesting about 50 points lower start for our market.

After today's gap down opening, Nifty will be close to immediate important support of 10300 where 34-DMA as well as the immediate previous bottom on hourly chart are placed.

A breach of 10300 would confirm a sell on the hourly chart and would pave the way for further correction. 10200, the two-third retracement level of the recent 10094-10410 upmove, would be the next support in that case.

10410, the top made on Tuesday, is the immediate hurdle above which 10490 would be the next target.

India's second quarter GDP will be released today and is expected to show a growth of 6.39%, up from 5.7% in first quarter.

OPEC will decide about extension of the output cut today. Oil Markets are concerned about Russia's commitment to extend production cuts. The existing output agreement, which includes OPEC and Russia, will expire in March next year.