10320 BELOW 10423; 10510 IS THE IMMEDIATE HURDLE

10320 BELOW 10423; 10510 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

US and European markets were shut yesterday for New Year.

North Korean leader Kim Jong Un declared his country a nuclear power during his New Year's Day address yesterday, but also acknowledged that he was "open to dialogue" with the South Korea.

AT HOME

After trading in a narrow range for better part of the day, benchmark indices nosedived in last hour to end lower by just under a percent. Sensex lost 244 points to settle at 33813 while Nifty finished at 10436, down 95 points. BSE mid-cap and small-cap indices

Indices however, managed to end higher by 0.1% and 0.3% respectively. BSE Auto index and Bankex fell 0.8% each, becoming top losers among sectoral indices while Utilities and Power indices were the top gainers, up 0.8% each.

FIIs net bought stocks worth Rs 326 cr but net sold index futures and stock futures worth Rs 188 cr and 327 cr respectively. DIIs were net buyers to the tune of Rs 1300 cr.

Rupee appreciated 19 paise to end at five-month high of 63.68/$.

Core sector, comprising eight core industries, grew at 6.8% in November, up from 4.7% in October and highest in 13-months.

TVS Motors registered 39% growth at 2.56 lac units. Eicher Motor reported 17% growth in Royal Enfield sales at 66900 units.

SBI cut lending interest rate by 30 bps to 8.65% with effect from January 01, 2018.

OUTLOOK

Today morning Nikkei is shut but Hang Seng and Shaghai, which are opening after extended weekend, are up 1.1% and 0.5% respectively. SGX Nifty is suggesting a marginally higher start for our market.

For past couple of sessions we have been mentioning that 10426 is the immediate support on the hourly chart a breach of which will confirm a "sell" on the hourly chart and would pave the way for further correction.

Nifty yesterday tumbled 95 points to settle at 10436 after touching a low of 10423 and is set to open marginally higher today.

A breach of 10423, the low made yesterday, would lead to further correction and 34-DMA, placed around 10320, would be the next important support to eye in that case.

Traders can initiate short positions below 10423 keeping a stop-loss of 10510, which is the immediate resistance on the hourly chart.