10670 CONTINUES TO BE IMMEDIATE UPSIDE TARGET; 10425 IMMEDIATE SUPPORT

10670 CONTINUES TO BE IMMEDIATE UPSIDE TARGET; 10425 IMMEDIATE SUPPORT

WORLD MARKETS                             

Dow ended marginally in the red while S & P 500 and Nasdaq fell 0.1% and 0.3% respectively as shares of Apple tumbled, offsetting gains in energy stocks.

Apple fell 2.5% on news reports that it will cut its sales forecast for the iPhone X by 40% in the quarter to 30 million units.

Energy stocks gained as US oil briefly hit $60 for the first time in 2½ years and settled 2.6% higher at $59.97 a barrel on news of an explosion at a crude pipeline in Libya. Brent crude rose 2.71% to settle at $67.02. Copper rose more than 1%. Gold settled up $8.70 at $1,287.50 per ounce.

The S&P CoreLogic Case-Shiller 20-City Composite Home Price Index rose 6.4% y-o-y gain, up from 6.2% the previous month. The Dallas Fed general business activity index rose 10.3 points to 29.7 in December, its highest since 2006. The Richmond Fed manufacturing index fell to 20 in December from its record high November reading of 30.

Shorter-end Treasury yields rose, while longer-end Treasury yields fell. The U.S. 2-year Treasury yield hit a high of 1.916%, its highest since October 2008.

Major European markets remained closed yesterday for the Christmas holiday.

AT HOME

After trading around flat line for better part of the day, Sensex and Nifty spiked up in last half an hour to end higher by 0.2% and 0.4% respectively. Sensex settled at 34011, up 70 points while Nifty added 38 points to finish at 10531. BSE mid-cap and small-cap indices climbed 0.8% and 0.6% respectively. All the BSE sectoral indices ended in green with Telecom and Realty indices leading the tally, up 2.3% and 1.5% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 44 cr, 49 cr and 116 cr respectively. DIIs were net buyers to the tune of Rs 544 cr.

Rupee depreciated 3 paise to end at 64.08/$.

GST revenue collection for November slipped further to Rs 80,808 crore, lowest since the implementation.

OUTLOOK

Today morning, Asian markets are trading mixed and SGX Nifty is suggesting a flattish start for our market.

After Nifty took out the 10490 top made in early November, we are working with upside targets of 10670, 10800 and 10950. Nifty yesterday gained 38 points to settle at a fresh record high of 10531 and is set to open marginally higher today.

10670 continues to be next immediate target. 10425 continues to be immediate support on the hourly chart, with the stop-loss of which existing longs should be held on to.