10800, 10950 ABOVE 10700; STAY LONG WITH THE STOP-LOSS OF 10590

10800, 10950 ABOVE 10700; STAY LONG WITH THE STOP-LOSS OF 10590

WORLD MARKETS                             

Dow climbed 0.9% while S & P 500 and Nasdaq gained 0.7% each to hit fresh record highs after major banks, including J.P. Morgan and Wells Fargo, announced better-than-expected quarterly reports.

U.S. consumer prices excluding food and energy rose 0.3% in December from the prior month, beating the 0.2% forecast. Retail sales for December rose 0.4% while November figures were adjusted upwards.

Euro strengthened on news that German Chancellor Angela Merkel had made progress on the formation of a coalition government.

European markets rose 0.2%-0.5%.

For the week, US indices gained 1.6%-2%.

AT HOME

After witnessing wild swings on the back of Supreme Court related controversy, benchmark indices managed to end higher by about three tenth of a percent, notching fresh record high. Sensex settled at 34592, up 89 points while Nifty added 30 points to finish at 10681. BSE mid-cap index lost 0.2% while small-cap index added 0.05%. BSE Energy and Oil & Gas indices gained 0.7% each, becoming top gainers among sectoral indices, followed by 0.5% higher Bankex and Capital Goods indices. Realty index tumbled 1.5%, becoming top loser, followed by 0.5% lower FMCG and Power indices.

FIIs net sold stocks worth Rs 158 cr but net bought index futures and stock futures worth Rs 54 cr and 1086 cr respectively. DIIs were net buyers to the tune of Rs 696 cr.

Rupee appreciated 3 paise to end at 63.64/$.

For the week, Sensex and Nifty gained 1.3% and 1.2% respectively, extending the winning streak to sixth straight week.

Industrial Production for November grew at 8.4%, the highest in 25 months. Retail inflation in December stood at 5.2%, a 17-month high. Core inflation stood at 5%.

In an unprecedented move, four Supreme Court judges today came out against the Chief Justice of India, saying that the administration of the nation's top court was not in order.

Infosys matched earnings estimates for the December ended quarter and maintained its sales guidance for the financial year 2017-18. Net profit rose 37.7% q-o-q to Rs 5130 cr. Revenue rose 1.3% to Rs 17794 cr. Dollar revenue rose 1% to USD 2755 mn while constant currency growth stood at 0.8%. EBIT rose 1.7% to RS 4319 cr and margin expanded by 10 bps to 24.3%. Infy maintained its full-year revenue guidance at 5.5-6.5% in constant currency terms and at 6.5-7.5% in dollar terms but cut FY18 rupee sales growth forecast to 2.1-3.1% from 3-4%.

OUTLOOK

Today morning, except a 0.3% lower Shanghai, other Asian markets are trading with gains of 0.3%-0.8% and SGX Nifty is suggesting about 40 points higher start for our market.

In Friday's report we had reiterated the target of 10700 and had asked raising the stop-loss to 10590.

Nifty touched a high of 10690, nearly achieving the 10700 target, from where it plunged sharply to touch a low of 10597 but recovered smartly to close at 10681. A higher start today will take the benchmark past 10700 mark.

As we have been mentioning, above 10700, 10950 would be the next major target to eye. Before that, 10800 would be the immediate target to eye.

10590 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

U.S. markets will be closed on today for Martin Luther King, Jr. Day.