NIFTY NEARLY ACHIEVES 10094 TARGET; 10300 IS THE IMMEDIATE HURDLE

NIFTY NEARLY ACHIEVES 10094 TARGET; 10300 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

Dow and S & P 500 fell 0.2% each while Nasdaq lost 0.4% on Friday after media reports suggested that Flynn, the former national security adviser, would testify that he was directed to make contact with Russians during the presidential campaign in 2016.

Stocks pared their losses after Senator Mitch McConnell told reporters that they had the votes to pass the Senate tax bill.

Gold and Treasurys spiked higher following the news as investors fled to market safe havens.US crude rose 96 cents or 1.7% to $58.36 a barrel while Brent gained $1.04 or 1.7% to $63.67.

European markets fell 0.4%-1.2%.

For the week, while Dow and S & P 500 gained 2.9% and 1.5% respectively, Nasdaq fell 0.6%. European markets ended with cuts of nearly a percent and half. In Asia, Nikkei rose 1.2% but Hang Seng and Shanghai fell 2.6% and 1.1% respectively.

Senate Republicans were able to narrowly pass a bill to overhaul the U.S. tax system in the early hours of Saturday morning. The GOP still needs to overcome significant disagreements for the House and Senate to craft a joint bill and send it to Trump's desk. Republicans hope to reach a deal by Christmas.

AT HOME

Benchmark indices nosedived nearly a percent, extending the losing streak to fourth straight day and closing at the lowest leve since 15th November. Sensex lost 316 points to settle at 32833 while Nifty finished at 10122, down 105 points. BSE mid-cap and small-cap indices fell 1% and 1.2% respectively. All the BSE sectoral indices ended in red with Realty index leading the tally, down 2%, followed by 1.8% lower Utilities and Metal indices.

FIIs net bought stocks worth Rs 306 cr but net sold index futures and stock futures worth Rs 69 cr and 466 cr respectively. DIIs were net buyers to the tune of Rs 176 cr.

For the week, Sensex and Nifty lost 2.5% and 2.6% respectively.

India's November manufacturing PMI rose to a 13-month high of 52.6 from 50.3 in October.

Ashok Leyland posted 51% rise in November sales at 14460 units. Maruti reported 14.1% growth at 154000 units. Bajaj Auto reported 21% rise at 3.26 lakh units. M & M posted 18% growth in auto sales at 38570 units while tractor sales jumped 26% to 22754 units. Tata Motors sales were up 58% at 52464 units. Hero Motocorp sales rose 26% to 605270 units. TVS reported 12% growth.

OUTLOOK

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

Readers would recall that we have been bearish on Nifty ever since immediate support of 10300 was taken out. After 10200 target was achieved, we had said that 10094, the bottom made in mid-November, is the next support to eye.

Nifty, on Friday, touched a low of 10108 before closing at 10121, nearly achieving this target and vindicating our view.

10094 continues to be important support to eye, upon breach of which, 9950, the two-third retracement level of 9687-10490 upmove, would be the next support to eye.

10300 is the immediate hurdle on the hourly as well as daily chart, a crossover of which is required for turning the view positive. This makes 10300-10100 immediate range, a crossover of which, on either side, is required for taking a fresh directional view on Nifty.