STAY LONG WITH THE STOP-LOSS OF 10425

STAY LONG WITH THE STOP-LOSS OF 10425

WORLD MARKETS                             

US markets ended marginally in the green amid thin trade as gains in real estate and utilities offset losses in energy and telecommunications shares.

Copper prices rose to their highest levels in nearly four years after China reported a 19% y-o-y increase in imports of the metal in November. US oil settled 33 cents lower at $59.64 and Brent fell 0.9% to $66.44 a barrel.

In US economic data, the Conference Board's consumer confidence index fell to 122.1 in December from 128.6 in November. Pending home sales rose 0.8% y-o-y in November.

Dollar and US treasuries fell with the 2-year yield near 1.88% after hitting a nine-year high of 1.927%. The 10-year yield traded near 2.41%. Dollar index fell about 0.3% to 93.

In Europe, FTSE gained 0.4% while other markets ended mixed with modest changes.

AT HOME

After trading in a narrow range, Sensex and Nifty saw a sharp dip in late noon trade to end lower by 0.3% and 0.4% respectively. Sensex lost 99 points to settle at 33912 while Nifty finished at 10491, down 41 points. BSE mid-cap and small-cap indices fell 0.2% and 0.3% respectively. Except a 1.8% higher Healthcare index, all the BSE sectoral indices ended in red with Oil & Gas index leading the tally, down 0.8%, followed by 0.7% lower Energy and Capital Goods indices.

FIIs net bought stocks, index futures and stock futures worth Rs 172 cr, 1378 cr and 87 cr respectively. DIIs were net sellers to the tune of Rs 207 cr.

Rupee depreciated 8 paise to end at 64.16/$.

The government will borrow additional Rs 50,000 crore during January-March, raising the gross market borrowing target of the government to Rs 6.3 lakh crore for the financial year 2017-18. This would push fiscal deficit for FY18 higher from the targeted 3.2% by about 3-4 bps.

OUTLOOK

Today morning, except a 0.1% lower Shanghai, other Assian markets are trading with modest gains and SGX Nifty is suggesting about 20 points higher start for our market.

After Nifty took out the 10490 hurdle, we have been working with target of 10670. Yesterday, Nifty, after touching a high of 10552, slipped to end at 10490 but is set to open higher today.

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