NIFTY BREAKS 10090 SUPPORT; 9950 NEXT

NIFTY BREAKS 10090 SUPPORT; 9950 NEXT

WORLD MARKETS                             

Dow lost 0.2%, S & P 500 ended flat while Nasdaq rose 0.2% yesterday as tech stocks rose on the back of gains in Facebook while energy stocks fell on falling crude.

U.S. Senate yesterday voted to go to a conference committee with the House to negotiate a plan to reform the tax system after both chambers passed separate bills earlier.

West Texas Intermediate crude fell 2.9% to $55.96 per barrel and Brent fell 2.6% to $61.22 after data showed a larger-than-expected increase in U.S. gasoline stocks.

U.S. private payrolls rose 190,000 in November, above the 185,000 forecast by economists in a Reuters poll, but below the 235,000 seen in October.

Markets also looked ahead to a potential government shutdown. If Congress fails to craft a deal on government spending by the end of the week, the federal government could close until a deal is struck.

Dollar index rose about 0.25% to 93.52, the highest level in more than two-weeks.

In Europe, except a 0.3% higher FTSE, other markets fell upto half a percent.

AT HOME

Benchmark indices tumbled nearly two-third of a percent with Sensex and Nifty closing at the lowest level since 23rd October and 11th October respectively. Sensex lost 205 points to settle at 32597 while Nifty finished at 10044, down 74 points. BSE mid-cap and small-cap indices lost 0.9% and 0.7% respectively. BSE Metal index nosedived 2%, becoming top loser among the sectoral indices, followed by 1.4% lower Telecom and Basic Material indices. Energy and IT indices were top gainers, up 0.5% and 0.3% respectively.

FIIs net sold stocks and index futures worth Rs 1218 cr and 446 cr respectively but net bought stock futures worth Rs 518 cr. DIIs were net buyers to the tune of Rs 995 cr.

Rupee depreciated 14 paise to end at 64.52/$.

RBI's monetary policy committee kept repo rate unchanged at 6% and maintained it's neutral stance but upped the retail inflation forecast for the second half of FY18 to 4.3%-4.7% from the earlier 4.2-4.6%. It retained FY18 growth forecast at 6.7%.

OUTLOOK

Today morning, Shanghai is down 0.3% but Nikkei and Hang Seng are up 1.2% and 0.5% respectively. SGX Nifty is suggesting a marginally higher start for our market.

Nifty yesterday lost 74 points to close at 10044, breaking the 10090 support decisively. Next support, as we have been mentioning, is placed at 9950, which is the two-third retracement level of the entire 9690-10490 upmove.

Immediate resistance on the hourly chart has moved lower to 10160, with the stop-loss of which trading shorts should be held on to.